Kellogg Opening Cereal Cafe in NYC Amid Soggy Sales

Evan Olmstead, 2, looks at Kellogg's Rice Krispies cereal at Piazza's grocery store in Palo Alto, Calif., Tuesday, May 3, 2011. Kellogg Co.'s first-quarter net income fell 12 percent as the world's biggest cereal maker dealt with higher costs and spent more on its brands.(AP Photo/Paul Sakuma)

(ABC News) — Kellogg is opening a cafe in New York as it pushes to reinvent cereal’s soggy image.

The company based in Battle Creek, Michigan, says bowls will cost $6.50 to $7.50 and combine cereals like Special K and Frosted Flakes with ingredients like pistachios and lemon zest.

The move comes as Kellogg Co. has suffered declining cereal sales in the U.S., with people reaching for a growing array of breakfast options. To boost sales, the company is also trying to market cereal as a night-time treat and on-the-go snack.

Kellogg says its cereal cafe, located on Broadway, between 48th and 49th streets, will open July 4. The cafe will also serve ice cream dishes, juices and coffees. Later this year, Kellogg says it plans to offer delivery.

PepsiCo Inc. is also planning to open an “experiential lounge” with an “artisanal menu” in New York as it tries to reinvent soda’s image amid declining sales. The company, based in Purchase, New York, said its “Kola House” will also have a cocktail curator.

The idea of packaged food makers opening stores featuring their products isn’t new. Chobani also has a cafe with a menu featuring its Greek yogurts in New York. And Mars Inc. has M&M retail stores in cities including New York.

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