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In the early days of Airbnb, things weren’t looking great. A year after launch, co-founder Brian Chesky shared that their website was attracting just 100 visitors a day, with only two bookings. "It's kind of like releasing a song, and a year later, like three people listen to it every day," he explained. With that kind of momentum, it’s hard to imagine things getting off the ground.
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The Struggle: Debt and Desperation
Airbnb was deep in debt, and Chesky and his team didn’t know what to do. But in a true entrepreneurial spirit, they came up with an unusual idea—cereal. Since they were called "Airbed and Breakfast," they decided to play on the breakfast angle. The team got creative and designed two limited-edition collectible breakfast cereals. For the 2008 Democratic and Republican National Conventions, they introduced “Obama-Os,” the breakfast of change, and “Captain McCain’s,” with the tagline, "a Maverick in every bite."
From Startup to Cereal Empire (Temporarily)
With zero dollars to spare, Chesky and his team tried reaching out to General Mills to produce the cereal. They were promptly told to stop calling—or face a restraining order. But that didn’t stop them. They found a local alum from the Rhode Island School of Design who produced 1,000 boxes of cereal for them. Their creativity paid off. Within a week, Airbnb got national media coverage, and the cereal was featured on TV.
A Strange Success: $40,000 From Cereal
Here’s the kicker: in 2008, Airbnb only made $5,000 from their actual website, but they pulled in $40,000 from selling their collectible breakfast cereal. Chesky recalls his mother asking, “So, are you a cereal company now?” And the funny thing is, the honest answer was, “Well, 80%... technically yes.”
The Turning Point
This quirky, desperate move helped keep Airbnb alive long enough for things to finally turn around. The cereal stunt brought attention, and it also brought in much-needed cash. Looking back, it’s a classic example of startup resilience—sometimes, to survive, you have to be willing to try anything, even becoming a cereal company for a while.
The lesson? When you're in survival mode, creativity is your greatest weapon. Brian Chesky and the Airbnb team proved that with grit and a little out-of-the-box thinking, you can turn a quirky idea into a lifeline for your startup.
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