Blog: Kellogg's opens Broadway cafe
Katy Askew | 30 June 2016
US cereal giant Kellogg's revealed plans to open a cafe in New York City, located at a prime location on Broadway.
The cafe, Kellogg's NYC, will serve dishes featuring Kellogg's brand cereals combined with “unique ingredients”, such as pistachios, lemon zest, thyme or strawberries and green tea powder. The combinations were created for Kellogg's by well-known chef Christina Tosi. Menu items range from US$6-8 per serving of cereal, the company revealed.
While this might seem a fairly high price tag for your bowl of morning cornflakes, the cafe is clearly not going to move the needle on Kellogg's lacklustre cereal sales in the US in and of itself.
What the company will be hoping to do, however, is generate some excitement around the category. As the group noted in its press release: “Kellogg's NYC will be a destination that reminds guests of home and drives new curiosity around the cereal bowl.”
Will it work? Well, branded retail has seen a lot of success in other categories as a marketing tool to support brand awareness. Unilever uses Magnum Pleasure stores, for instance, to drive brand engagement and deepen the group's conection with consumers. These stores are operated on a break-even basis.
With General Mills management yesterday indicating that it has seen an up-tick in the US cereal sector of late, perhaps activity like this can help re-activate the cereal category as a whole in the US.
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