Dive Brief:

• Kellogg, the maker of Frosted Flakes and Rice Krispies, is opening its new cereal cafe on Dec. 7 in Manhattan’s Union Square neighborhood, according to the company. Kellogg’s NYC Cafe in Times Square closed in August after a successful first year so the company could invest in a larger location.
• The new location will be five times as big as the prior cafe, and the new design will feature an open-concept kitchen and new menu items.
• Kellogg’s Union Square Cafe also was decorated with social media enthusiasts in mind. The company reports cereal and Kellogg characters will "come to life" in an engaging way that is ideal for selfie and Instagram users.

Dive Insight:

Pop-up cafes are a big hit right now for food manufacturers, drawing positive attention in the store and online via social media. Three hundred reservations for a Cheetos pop-up restaurant in New York's Tribeca neighborhood were booked just six hours after its opening was announced during the summer. It was so popular it had a waiting list more than 1,000 people.

Kellogg is now doubling down on its cereal cafe concept, expanding it to an even larger restaurant space.

The cereal maker reported its smaller cafe was successful, so it must have seen a solid enough profit to invest in a significantly larger retail space. Considering it was charging $7 for a bowl of cereal, it's conceivable there was a potential for a good profit margin.

The new Kellogg’s NYC Cafe will offer a modified menu compared to the first location, but it will still be cereal-inspired. Favorite recipes from the Times Square restaurant will return, along with new combinations reportedly inspired by surprise partners.

Kellogg’s launch of this new cafe is further confirmation that cereal is still popular and relevant to consumers. It’s a category that has been losing ground to options that are higher in protein and more portable in recent years, but is increasingly popular as a snack. Kellogg’s NYC Cafe would be an ideal stop for travelers looking for a quick breakfast, or an afternoon treat. It also benefits Kellogg, too. It's an ideal way for it to try out new ideas on consumers, and get feedback from cereal lovers on which products they would like to see on the market.

"We're excited to see how people re-think the possibilities of cereal and how their creations might inspire us to bring new products to life," said Aleta Chase, Kellogg's marketing director, said in a statement.

It will be interesting to see if this new concept has any impact on grocery sales of cereal. Consumers may be inspired by their recipes, particularly for ice cream cereal sundaes, and try to recreate them at home. Even if sales don’t budge, it will still be a PR success for the company with the initial press they’ll receive with the opening and continued exposure from consumers posting on social media when they visit.

Kellogg also may be considering expanding the cereal cafe concept with pop-ups in other large cities. It’s proven to be a successful model, and would likely be one that would translate well to consumers in other areas.