With the aim of having a presence in every corner of the planet, the Greek coffee chain Mikel Coffee Company moves, as stated by Athanasios Zikiris, CFO of the company. In fact, her prediction is that within the next few years Mikel Coffee will operate in a total of 30 countries in the world, with the interest from prospective beneficiaries being intense. In 2021 Mikel Coffee had strong network growth, with 60 stores on a global basis.
Interview with Giorgos Lampiris
– In which countries and with which model (e.g. master franchise) does Mikel Coffee Company currently operate outside of Greece?
The development of the company Mikel Coffee is done with the right of franchise. Foreign countries such as Cyprus, Turkey, Saudi Arabia and North Macedonia operate under master franchisee status.
The market situation in which the brand and the partner are going to enter is of fundamental importance.
Taking into account key factors of each country, we propose the operation of a store, evaluate its course in the market, giving a step in the near future to the planning of a five-year plan.
– Have there been any new markets that the business has recently entered?
In 2021 we had new entries with Mikel stores in Kuwait, Oman and New York. For the current year and in a short period of time, stores in Qatar, Iraq, Jordan and Germany have joined our network. According to the rate of interest in the Mikel brand, we expect to increase our presence in at least 30 countries in the coming years.
– What is the development plan for the Greek market? Is there currently scope for your chain of stores to grow further, or is our country now showing signs of saturation?
Considering that the franchise chains in Greece have a smaller market share compared to the local stores, which are also the main competitor, then we can admit that there is room for everyone. At Mikel Coffee we believe that the brand has a sustained momentum in the Greek territory and our main priority is Attica and the islands.
– How did 2021 move for you in terms of financial performance compared to 2020 and what are the signs of the first half of 2022?
Clearly, 2021 presented a more positive sign than 2020. The most basic impact that arose in the midst of a pandemic in 2020 was mainly disorientation, creating uncertainty and difficulties for businesses. For Mikel Coffee, the year 2021 really showed great growth, with the addition of 60 new stores to our network worldwide.
With the beginning of 2022, new difficulties were presented in the market, with the main cause being price increases throughout the supply chain, but also in matters of product availability and transport (Logistics). Although the pandemic, geopolitical turmoil and the energy crisis gave us concerns about the course of the year, the results so far are better than our expectations.
– Are there currently any new store concepts you are developing? Will we see the drive thru coming from Larissa to Athens?
We have already proceeded with the renewal of our stores, with the aim of completing them in the next two years. The drive thru as a concept in Greek territory has started in Thessaloniki and the second one in the city of Larissa. Admittedly, it is a difficult undertaking, as there is no suitable infrastructure, let alone in the closed city of Athens. Nevertheless, the specific concept has gone ahead in the United Emirates, Jeddah and Boston with success. We hope that it will also be developed in our country, where possible, in the future.
– If you were to give me an approach to the trends that dominate the Greek market, what is it that the modern consumer demands from your stores?
The trend of consumers towards a healthier lifestyle is also reflected in our industry. We’ve been offering our drinks with new alternatives to soy and coconut milk for a while now, and we’ve also added more food options with healthy recipes to our menu. The same happened with our Grab & Go products with protein cereal bars, healthy snacks, etc.
Another prevailing trend is respect for the environment. Mikel Coffee has been environmentally conscious since its inception. Quickly adopting greener options, we replaced our packaging with a new, eco-friendly paper straw and lid, an award-winning pan-European patent.
– Given the widespread spread of coffee chains in our country, will we see the phenomenon of business concentration manifesting itself in the coming years?
The business environment in the F&B industry is strongly on the rise. Of course, with the continuous development of the coffee industry in Greece, there may be such changes and we are waiting for the developments. Whether this will arise through mergers and acquisitions remains to be seen. Specifically, at Mikel Coffee, our goal is to grow beyond the Greek borders, offering our services to every corner of the planet. It will be on a large scale and we will be a Greek company that will have stores in every corner of our planet.
Source: Capital
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