Kellogg to millennials: Eat cereal and chill at new store

Posted at 11:12 AM, Dec 15, 2017

NEW YORK (AP) — Kellogg opened a new store in New York on Thursday that it hopes will become a hangout spot for millennials willing to buy cereal by the bowl and then lounge around on a bean bag chair.

Cereal sales have been soft, and Kellogg Co. has tried to reach out to those in their 20s and 30s before, such as in ads pitching cereal as a late-night snack. The new store is filled with stuff it thinks millennials like: There’s a vending machine that dispenses cans of La Croix sparkling water. And a few feet away is a well-lit shelf where customers can place their bowls of cereal, add props such as vintage Kellogg trays and take pictures to post on Instagram.

Visitors of Kellogg’s NYC Cafe pay up to $7.50 for a bowl of Froot Loops, Frosted Flakes or another cereal that can be topped with sea salt, candied cashews and about 30 other ingredients. The 5,000-square-foot store in busy Union Square has couches and swing chairs where people can sit and use the free WiFi. The store also sells Pop-Tarts, coffee drinks and different flavors of milk.

Kellogg’s first store, in New York’s Times Square, closed this summer a year after opening. The Battle Creek, Michigan -based company said it was too small and the new one is more than three times larger.

The new location also has less competition from other food companies trying to create buzz with stores: The first one was next door to an M&M’s candy shop and across the street from a store devoted to Hershey’s chocolate.