Cereal-only restaurant set to open on campus
by Byron Kho
The Daily Pennsylvanian
September 17, 2004
It's 11 p.m. and the urge is strong for a bowl of Froot Loops and skim milk, with strawberries and mini-marshmallows on top. But how to fulfill this craving without going grocery shopping?
Boulder, Colo.-based cereal bar company Cereality looks to answer that question for students, employees and visitors to Penn's campus with the November opening of its first sit-down cafe nationwide.
To be located in the space currently occupied by the Chocolate Guy on University Square, the company seeks to offer cereal -- in 32-ounce tubs, as snack bars, smoothies, hot oatmeal and even parfaits -- every day from 6 a.m. to midnight. With over 30 cereals, three milk options, 34 toppings and many different ways of combining them all, customers will have no lack of ability to eat cereal just how they want it.
"When anybody goes into our store, the first question our servers will ask is, "How do you like your cereal?'" said David Roth, co-founder and chief executive officer of Cereality. "Everyone has an answer to that. Everyone."
The 1,500-square-foot location will be set up in Seinfeld apartment-esque fashion, with a kitchen motif and cabinets full of cereal. The seating areas will have farm tables and cozy chairs.
Its business model is a little bit unusual. Not only does the company combine two of the most ubiquitous food products in America -- cereal and milk -- but it also helps democratize the highly competitive cereal market.
The Quaker Oats Company has worked closely with the company to supply start-up funding and provide help with understanding consumer behavior and continuing research and development. Additionally, Cereality has business relationships with General Mills, Inc. and the Kellogg Company.
The marketing slogan "got milk?" pioneered by the Milk Processor Education Program has also partnered with Cereality for advertising and promotion. Since milk is featured in the company's cereal creations, the rationale is that this could be a significant cross-promotional effort.
"Everything you touch and see in our stores is trademarked," Roth said. "This is an entirely new way of running a business. We've already applied for a patent for this business method."
Last year, Cereality opened up a successful prototype location at Arizona State University in order to test its restaurant concept and study consumer behavior.
"We wanted to see if people would eat cereal in a cafe setting -- and they did," Roth said.
Roth was approached by Madison Marquette Realty Services, the leasing agent for University Square, on behalf of Penn.
"When they came to us, we thought it would be an immediate fit. We wanted to be near campus and in the company of high-end retail," Roth said. "And Ivy League is the way to go."
The company foresees an aggressive rollout of cafe locations nationwide in the next 18 months.
For now, Penn administrators and students are excited about the upcoming opening.
"We are thrilled," said Omar Blaik, Penn's senior vice president for facilities and real estate services.
"The addition of Cereality to our retail portfolio will add a creative, lively and unique food concept to our business community."
Wharton senior Anthony Giuliano voiced similar sentiments. "I think that this cereal bar opening will make University Square even more of a destination for students," he said.
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