Starting a Cereal Bar Business

Innovative foodie culture has given rise to a plethora of bizarre and exciting new culinary trends, from weird craft beer to a booming food truck movement. One of the more humble concepts to gain traction lately is the cereal cafe, a simple concept that gives diners – mostly younger patrons – an opportunity to crunch on a bit of childhood nostalgia. Such a simple concept can be started without a lot of expensive equipment, but choosing what cereal to serve with which milk is only part of the equation. You'll need to make sure you've got a concept that will stand the test of time and tie up any legal loose ends before you pour your first bowl.

Table of Contents

• Making Cereal a Solid Concept
• Designing a Cereal Bar Restaurant Menu
• Maximizing Sales at Your Cereal Bar Business
• Opening a Cereal Bar Business: Legal Considerations
• Would a Cereal Truck Be a Good Fit?
• Equipment for a Cereal Bar Business

A concept as niche as a cafe that serves nothing but cereal isn't likely to hold a great deal of attention for very long if that's all your establishment has to offer. You'll need to offer an experience diners can't get eating cereal at home.

The younger crowd you're likely to attract to your cereal cafe will be more motivated to frequent your eatery if you offer some form of entertainment, whether it be live music, interactive games and activities, or movie screenings. Hosting an open-mic night is a great way to bring in some free entertainment and support local artists. Board games, arcade games, and video games are a good way to encourage social groups to gather and hang out at your cereal bar restaurant. You might even consider hosting themed events to capitalize on the naturally playful vibes of a cereal bar.

Don't settle for serving only the cereal that guests can find at their local supermarket. Take a cue from the most successful cereal bar businesses and source obscure cereals from around the world in addition to the classics. Craft a cereal menu that serves guests who long for the familiar as well as those who want to try something new each time they visit. Many patrons' favorite childhood cereals aren’t available in national chains anymore, but thanks to the power of the internet, they may still be available through online retailers.¹

Another way to offer an experience guests can't have at home is to create unique combinations of cereal, such as the "cereal cocktails" you'll find on most cereal bar restaurant menus. Experiment with combining multiple cereals with different types of milk and mix-ins, such as candy, cookies, ice cream, and fresh or freeze-dried fruit. Post them on your menu with clever names to pique customers' interests and build your credentials as a breakfast cereal connoisseur.

For upselling opportunities, consider offering prepackaged boxes of your most popular cereal recipes, as well as customizable boxes of cereal that customers can buy and take home with them. This makes it possible for your establishment to capitalize on sales from customers who aren't able to come visit the restaurant in person very often.

Milk is obviously cereal's lifelong companion, but not all your potential patrons can drink cow's milk. Provide alternatives such as soy, oat, almond, and coconut milk to make your vegan and lactose-intolerant guests feel welcome. You can integrate these uniquely flavored milk substitutes into recipes, too – for instance, making a tropical-themed cereal bowl with coconut milk. Don't forget to provide a few gluten-free cereal alternatives for patrons who are gluten sensitive.

It may be a good idea to offer other types of breakfast foods as well as cereal. Warm cookies, muffins, pastries, biscuits, quiche, waffles, and toasted breakfast sandwiches can all be purchased premade and then heated to order with minimal equipment and effort. Adding a smoothie blender or two can help you offer an enticing breakfast alternative for more health-conscious consumers, and you can offer fresh fruit on the menu as a side dish or cereal topping to cross-utilize any fresh ingredients you choose to keep on hand.

No matter what else your menu features in addition to cereal and milk, you should definitely serve coffee at your cereal bar restaurant. We advise you not to settle for run-of-the mill coffee, either. Serve freshly ground, premium coffee sourced from local roasters, if possible. In addition to serving old-fashioned drip coffee, consider investing in an espresso machine so patrons can enjoy cappuccinos and lattes with their Cheerios and Fruit Loops. Building a name as a reliable place to get a good cup of coffee can snag your cereal cafe a ton of extra business from patrons who wouldn't otherwise stop by.

As far as the law is concerned, the first step in opening any business is to get a general business license. This license is fairly simple to procure and can be obtained by visiting your city hall. You may be able to find the application on your city government's website. Applying for a business license often goes hand in hand with registering for local and federal tax IDs, so be prepared to complete that paperwork, as well.

Most jurisdictions require foodservice operators to have a food handler's license, too. You'll likely be required to register with the health department and undergo an initial inspection before you can open for business.

Zoning laws will determine where you can set up shop, but they should be easy to navigate, especially if the site you’ve chosen has been home to a restaurant in the past. If you decide to take your business on the road as a food truck or vending stand, be sure to research your city's requirements for mobile vendors. Some require separate registration for that type of operation.

We always encourage prospective operators to check out the U.S. Small Business Administration website, which provides tips to help entrepreneurs find success, including information on how to open a cereal bar.²

Nowadays, every type of food is being served from a truck, and the simplicity of cereal makes it particularly suitable for a mobile format. Cereal food trucks already have found success in the hipster capitals of the U.S., such as Portland, Oregon.³

Opening a food truck is a great way to get into the business with much lower overhead than opening a brick-and-mortar location. A truck also lets you follow the crowds, taking your operation to events that you think your core clientele might frequent. Finally, opting to found your concept on the chassis of a food truck gives you the opportunity to test the waters and see if there's a market for a cereal bar in your area before you go all-in on a permanent restaurant.

As with any venture, mobile or otherwise, location is a huge factor in how successful your concept will be. Because a cereal concept is more likely to thrive in areas with high concentrations of young people, consider scouting locations near college campuses or in urban centers that attract younger crowds on the weekends.

Once you've hammered out a concept and pulled a plan together to handle the legal technicalities of opening a cereal bar, it's time to start shopping for the equipment you'll need to outfit your cereal bar business properly. Some pieces of equipment often found at cereal bar restaurants are listed below to help get you started.

Dispensers & Containers

• Display your most popular cereals prominently with cereal dispensers.
• Give your customers an opportunity to customize their cereal bowls with add-ins such as fruit, candy, and syrup served from condiment dispensers.
• Serve warm toppings like chocolate sauce and caramel from electric topping dispensers.
• Stock up on tabletop dispensers and organizers for napkins, condiments, and cups.

Displays & Decor

• Consider installing a glass door merchandiser for showing off the different milks and bottled drinks you offer, along with other chilled products.
• If you offer pastries or similar fresh snacks, install a bakery display case or pastry display case to make them visible to guests.
• Serve your offerings in bowls that match the theme and decor of your cafe. For on-the-go patrons, remember to stock disposable cereal bowls and disposable cereal spoons.
• If you offer coffee or food items other than cereal, you may need to buy coffee mugs and disposable coffee cups as well as plates, sandwich and cookie bags, disposable food trays and servingware, food cones, plastic straws, paper straws, and to-go containers and takeout boxes.
• Stock up on janitorial supplies to keep your facilities tidy and welcoming.

Food & Beverage Equipment

• Keep milk, fruit, and other perishable ingredients fresh with the right commercial refrigeration equipment.
• Essential coffee equipment can include traditional brewers, espresso machines, carafes, and self-serve airpots.
• Stocking up on commercial food bags and a bag sealer makes it easy to package custom mixed bags of cereal to go.
• A griddle is all you'll need to offer additional breakfast favorites like eggs, bacon, and pancakes, but adding equipment that can produce grease-laden vapors may necessitate the installation of a hood vent.
• Keep all those bowls and spoons clean with commercial sinks and commercial dishwashers. Don't forget to install the correct number of hand sinks for staff members to wash their hands.

References

1. The Cereal Store. The Cereal Project. Accessed September 2021.
2. Small Business Administration Home. U.S. Small Business Administration. Accessed September 2021.
3. 3 Crazy Food Trucks. Portable Press. Accessed September 2021.