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Kellogg To Open Times Square Cereal Cafe Amid Soggy Sales

NEW YORK (CBSNewYork/AP) -- Kellogg is opening a cafe in New York as it pushes to reinvent cereal's soggy image.

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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. Also on the menu will be Rice Krispies with fresh strawberries and green tea powder, with an additional $2 fee for yogurt toppings.

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, it is also trying to market cereal as a night-time treat and on-the-go snack.

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.

(TM and © Copyright 2016 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2016 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)

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