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A small business blog featuring tips to help entrepreneurs succeed in the small business world. Topics include family business, human resources, marketing, money, networking, operations, ownership, startup, taxes and technology.
Breakfast in a Whole New Way
There is a new hit at some of our nation’s university campuses that is quickly headed toward popularity as widespread as Starbucks and McDonald’s. In September of 2004, David Roth and Rick Bacher started an innovative new business called Cereality — a cereal cafÃ© on the campus of the University of Philidelphia. Since that time they have opened three other locations.
Huh? What’s a cereal cafe? Well, Cereality’s pajama-clad employees serve 30 varieties of cold cereal, with the option of mixing together and topping with anything from fruit to M&Ms, and even ice cream, served in a Chinese food style container. This couch filled environment, with cartoons always playing on the TV, is reminiscent of those Saturday mornings when, as children, we didn’t have a care in the world.
The common reaction: Why didn’t I think of that? Many wishing they had and Cereality are now facing some competition. And why not? Cereality already took the risk for them. Bowls, located at North Carolina State, opened in 2005. The Cereal Bowl opened this year across the street from the University of Miami and their projected first-year sales are expected to reach upwards of $350,000. Not too shabby.
Cereality welcomes the competition, but has recently taken steps to protect the franchise they are in the process of building. Roth states that he is trying to act before the big guys, like Starbucks, try and take a piece of the market. Cereality has applied for trademarks for its name and around 50 slogans such as “It’s always Saturday morning,” or “What’s in your bowl?” They have also applied for patents covering business processes, such as storage methods and cereal combinations.
Cereality also sent warning letters to Bowls and The Cereal Bowl, making patent claims on everything from the containers they use to mixing brand-name candy toppings with the cereal. They also sued Ohio’s new business Cerealicious for trademark infringement. The Cereal Bowl followed suit by sending a letter to Bowls and responding defiantly to Cereality.
Roth states that they plan to continue franchising, including partnerships with hotels and retail chains, and providing online sales and catering. Cereality has received 6,000 plus applications for partnerships from all over the world. Roth hopes to have at least 30 new partnerships by 2008. With an estimated 95% of Americans eating cereal, these gentlemen have stumbled onto something “Grrrreat.” Makes one wonder what other business opportunities are staring us in the face, waiting to be presented to the world.
One question remains: When are you opening one in my town?
• Entrepreneur.com: Bowled Over
• Time Magazine: In a Real Crunch
• PRNewsWire.com: 1500 Square Feet of Cereal
• USA Today: A Whole New Bowl Game
• FastCompany.com: Customer Service Local Hero – Cereality
• Catalyst Magazine: The Cereal Cafe
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