A couple of entrepreneurs in London came up with a stupid idea: a café entirely dedicated to breakfast cereal.
Pretty silly, right? Except that this spot has become so successful since its December opening that a second site is planned in later this year.
Gary and his brother Alan, both originally from Belfast, say the idea initially came to them when they were hungover one day and really craving cereal. “We thought long and hard about every detail.
We’re big fans of cereal but knew that it needed to be more than just a café that sold cereal to succeed. It needed to be a strong, recognisable brand where the décor, music and ambience all contributed to the experience.”
Here are a few tips from Gary on how they made their start-up work:
1. Make Sure You’ve Got Related Skills
There are always ways to get into a new market where you may not have prior experience. It’s definitely easier to do so in a sector related to knowledge you’ve already got.
Otherwise, partner with someone who does. “Our combined backgrounds — retail and hospitality — meant that we really knew what a customer would expect and want when stepping through the doors.”
2. Research Your Market
“First it was research, research, research — it was the most important thing. We really needed to understand the area and our market.
So we sat across from local coffee shops and watched how many people were going in and out on a daily basis — it was insane how many there were!
Why couldn’t we catch the overspill albeit with something different?”
3. Make A Business Plan
“Then we worked out our figures and started pulling a business plan together. I then went to the East London Small Business Centre and enrolled on a four-day course.
Reassuringly, I already knew most of the stuff they were teaching us, but it did give me the motivation and confidence to get the ball rolling.
I think it’s a wise move for anyone looking to start up a business.”
4. Location, Location, Location
“Finding the location was one of the most difficult things. As soon as landlords found out we were a start-up the deposit they needed would go up from three months to six.
Ironically, it’s when you are a start-up that you don’t have that kind of money to put down straight away.
It took about six months to find the right site in Hackney — I don’t know whether it was luck or it was meant to be!”
5. Maintain Self-Confidence
“The biggest mistake we made was going to the bank first. They told me I didn’t have enough experience in hospitality — even though I’ve got 10 years — and it dented my confidence.
Similarly, we had business advisors throughout the process and some told us we should be doing sandwiches if we were planning to open at lunchtime.
You don’t go to a sushi place and expect burgers — so we didn’t see why it should be any different for our cereal café.
There are so many different combinations of cereal, milk and toppings to enjoy that we’ve got a strong enough offering to be open for breakfast, lunch and dinner without adding anything else. Offering a strong enough variety to make the model profitable, too.”
6. Don’t Take No For An Answer
“We knew our concept was a good one from the beginning so we ploughed on regardless and are pleased we did. That’s important — go with your gut instinct no matter what people say. If your idea is somewhere you would want to go, then chances are others will, too.”
Pretty silly, right? Except that this spot has become so successful since its December opening that a second site is planned in later this year.
Gary and his brother Alan, both originally from Belfast, say the idea initially came to them when they were hungover one day and really craving cereal. “We thought long and hard about every detail.
We’re big fans of cereal but knew that it needed to be more than just a café that sold cereal to succeed. It needed to be a strong, recognisable brand where the décor, music and ambience all contributed to the experience.”
Here are a few tips from Gary on how they made their start-up work:
1. Make Sure You’ve Got Related Skills
There are always ways to get into a new market where you may not have prior experience. It’s definitely easier to do so in a sector related to knowledge you’ve already got.
Otherwise, partner with someone who does. “Our combined backgrounds — retail and hospitality — meant that we really knew what a customer would expect and want when stepping through the doors.”
2. Research Your Market
“First it was research, research, research — it was the most important thing. We really needed to understand the area and our market.
So we sat across from local coffee shops and watched how many people were going in and out on a daily basis — it was insane how many there were!
Why couldn’t we catch the overspill albeit with something different?”
3. Make A Business Plan
“Then we worked out our figures and started pulling a business plan together. I then went to the East London Small Business Centre and enrolled on a four-day course.
Reassuringly, I already knew most of the stuff they were teaching us, but it did give me the motivation and confidence to get the ball rolling.
I think it’s a wise move for anyone looking to start up a business.”
4. Location, Location, Location
“Finding the location was one of the most difficult things. As soon as landlords found out we were a start-up the deposit they needed would go up from three months to six.
Ironically, it’s when you are a start-up that you don’t have that kind of money to put down straight away.
It took about six months to find the right site in Hackney — I don’t know whether it was luck or it was meant to be!”
5. Maintain Self-Confidence
“The biggest mistake we made was going to the bank first. They told me I didn’t have enough experience in hospitality — even though I’ve got 10 years — and it dented my confidence.
Similarly, we had business advisors throughout the process and some told us we should be doing sandwiches if we were planning to open at lunchtime.
You don’t go to a sushi place and expect burgers — so we didn’t see why it should be any different for our cereal café.
There are so many different combinations of cereal, milk and toppings to enjoy that we’ve got a strong enough offering to be open for breakfast, lunch and dinner without adding anything else. Offering a strong enough variety to make the model profitable, too.”
6. Don’t Take No For An Answer
“We knew our concept was a good one from the beginning so we ploughed on regardless and are pleased we did. That’s important — go with your gut instinct no matter what people say. If your idea is somewhere you would want to go, then chances are others will, too.”
