Cereality Growth Begins By Shutting Two of Seven Stores
An article by Derek Gale, Associate Editor of Restaurant & Institutions, states: On acquiring the seven-unit Cereality Cereal Bar & Café chain, one of the first moves franchising powerhouse Kahala-Cold Stone made was to close two stores, one in Chicago, the other in Evanston, Ill, a suburb north of the city.
The stated purpose is to transition from company-owned to franchise units but the two that have gone dark may not re-open in the same locations. “I can’t speak specifically to the location,” says Doug Ducey, Kahala-Cold Stone CEO. “But we think the Chicago market is one of the best in the entire world. It is viable for Cereality and we will grow and develop in Chicago.”
Chicago was an important launching pad for Cereality, which began as a kiosk at the Arizona State University, Tempe. Its quirky, mix-and-match cereal-centric menu quickly caught on with students. Philadelphia was picked for its second location and then Chicago, which also was chosen as the upstart chain’s headquarters. Asked what existing Cereality customers in the Chicago market may think as the fate of the locations is decided, Ducey says, “We always want to make our customers happy. We would ask folks to be patient, give us more time, and let us get Cereality open in their market. It’s our top priority to determine what the best opportunities are for locations and franchisees in a way that will please existing customers and expand [the Cereality] brand to those unfamiliar with it.”
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