Coffee first – then

MIKEL COFFEE COMPANY I PROFILE

then we take on the world!

Mikel Coffee Company continues to keep blending a better tomorrow for customers, given its coffee shops are popping up at a rapid rate around the globe, and there is no sign of the Greek company’s expansion slowing. Chief Marketing Officer Stelios Papakostas chatted to Andy Probert about how 2021 played a “hugely influential role” in its business, and providing a cup of goodness for the environment.

Coffee makes the world go round. And none more so than the Mikel Coffee Company’s. The Greek business’ expansionist ambitions have remained largely intact, having seen 60 shops open in 2021. And coffee will again fuel another major mega-opening phase in 2022.

While priding itself on immersing the customer from the point they step in store, the Mikel Coffee community goes further than most with its dedication to raw materials, protecting the environment and social cohesion.

A natural blend

This was underlined when, in 2021, the company proudly received the Corporate Social Responsibility social media award in Greece for its Blending A Better Tomorrow campaign in the eco-friendly category.

“We are the only coffee company in Greece which uses an eco-friendly cup, lid, and straw,” related Stelios Papakostas, Chief Marketing Officer. The company also contributed to planting 1,000 trees in Athens, with a view to 5,000 more in 2022.

“Our duty, and every company’s obligation, is to pass on a better and safer world to the next generation and seek new solutions to reduce our environmental impact. Environmental awareness and the reduction of harmful materials are ones that Mikel strongly cares about and promotes.”

As a conscientious coffee company, Mikel has also driven change through its food and beverage menu range, incorporating healthier choices, such as vegan and well-being options. That’s why when you pop into a Mikel coffee shop, wherever in the world, you can park your stresses at the front door, step in and luxuriate in an oasis of calm and indulgence: a ‘chill moment’ in a highly-charged world.

To differentiate itself in such a crowded marketplace, Mikel focuses on its raw

MIKEL COFFEE COMPANY I PROFILE

materials to make quality, eponymous coffee. Its stores use 100% fresh ground Arabica coffee beans, and while some peers use and mix powders in their coffees, Mikel uses homemade ice cream and milk across its entire beverage range, allowing the natural approach to define Mikel’s rich aroma, flavour and taste.

R&D has helped Mikel produce new beverages that reflect the low calorie, high nutritional, vitamin-rich trend demanded by customers. “We offer top quality products at competitive price points,” confirmed Mr Papakostas.

On the food side, such as sandwiches, Mikel collaborates with several experienced chefs to produce new fresh and healthy food. Soya milk, almond and coconut milk are incorporated in the Mikel beverage range.

Adapting to new norms

2021 proved another exceptional year of advancement for Mikel despite the impacts of the pandemic. Despite Covid restrictions and quarantines, the company collectively managed to reorganise on an operational and executive level.

“We were faced with never-before-seen challenges in servicing our customers, but we were able to adjust to meet their needs,” reflected Mr Papakostas.

The company was forced to alternate its training procedures, with training taking place directly in-store rather than at its academy. With restrictions limiting staff’s ability to travel to new stores for training, experienced support teams now conduct real-time training remotely via camera.

Mikel’s biggest achievement in 2021 was the tech aspect of the business. “We focused on e-commerce and grew our online sales. We continue launching new technology on our website and platforms and expect the completion in the second half of 2022,” he related.

While e-commerce was always an option for customers, the Greek market was not accustomed to using electronic means for ordering.

“One of the pros was that the Greek market became more comfortable with ecommerce in general. Because of this, our company gained more exposure on a global level,” said Mr Papakostas.

“As we’ve been providing takeaways at stores since 2018, this also proved very convenient during the pandemic. We alternated store design from dine-in to takeaway and cooperated with delivery services to serve more customers.”

Brewing further expansion

With this perfect blend in place that matches business aspirations to the consumer’s last sip of their iconic coffees, Mikel has been able to continue rolling out these dynamic features to the wider world. 2021 saw the company open 60 new Mikel franchise stores in Greece, Cyprus, Turkey, Saudi Arabia, and the United Arab Emirates. And within the first three months of 2022,

Stelios Papakostas, Chief Marketing Officer

MIKEL COFFEE COMPANY I PROFILE

Mikel opened 15 new shops, with an anticipated aim of 90 shops for the whole of this year.

“We have more than 300 shops in 17 countries on five continents,” reflected Mr Papakostas. “We extended into new markets such as Oman, Qatar, and in the Long Island Astoria district of New York. Mikel is in discussions for further extensions in the USA, Europe, and China, with expected openings within 2022. By the year’s end, we hope to be in 20 countries.”

He added: “While we are focusing on expanding further into new markets globally, such as Jordan and Iraq, our goal is for a stronger presence in Europe and the Americas. That will also include our first shop in Germany.”

The franchise rollout has been largely unstoppable since Mikel launched its first store in Larissa, Greece, in 2008. Such was its popularity, Mikel rapidly expanded and now has 300 stores across Greece.

Challenges and opportunities

Through Mikel Global’s international franchise operation, business growth has proved exceptionally brisk, opening branches in Cyprus, UK, USA, Australia, Canada, Turkey, Saudi Arabia, United Arab Emirates, Egypt, Bulgaria, North Macedonia, and Romania.

“Since 2018, we have opened dozens of stores abroad, and the Mikel experience has been one of considerable success,” he added. The successful extension of any franchise depends on its financial progress, and the pandemic, admittedly, caused some concerns and made things difficult for 2021.

“While recent studies have confirmed a financial plateau in the market, it is worth noting there was progress in adapting to the new circumstances. When the pandemic ends, we hope to see the market self-heal and progress with new business models for franchises,” he confirmed.

Mr Papakostas revealed the company did encounter some hurdles in the marketing department, citing unstable markets.

“Trial and error testing led us to a successful marketing flow within our franchises and we have high hopes for the future. While growth is appreciated, the rate at which we grow has brought the challenge of keeping up with staffing,” he noted, with Mikel employing over 3,000 people. “Sometimes finding staff fast enough to keep up with our growth can be difficult.

“Our trainers and state-of-the-art training facilities have adapted to our growth rate, making the hiring process faster and easier.”

Another challenge Mr Papakostas identified is when Mikel sets foot in a new region or country for the very first time.

“Establishing a name for ourselves in a market where we are not known is not an easy task. Luckily, our success is proven in numbers globally which, in itself, says all we need to say when introducing Mikel to a new market.”

And while Mikel has grown into a large franchise, its locations continue to maintain a warm and friendly ‘‘mom & pop’’ shop feel.

“After all, our logo depicts our founder’s father on it, and it is representative of how we want our customers to feel like family when they visit our shops,” he said.

“Our quality control, high standards, premium raw materials and expertise in production and service are just some of the values that set us apart from the competition.”

Mr Papakostas reflected: “Coffee has always been a personal matter for the coffee lover. The coffee industry has proven successful over the years. If we consider that coffee franchises are fewer than stand-alone shops within the market, we can see there is an opportunity for growth.

“While Mikel started in a small town in Greece, it has proven that with its strategic growth plan, it can claim a spot among larger and more popular franchises in the industry.”

He concluded: “Mikel’s growth to 350 shops in 13 years speaks volumes for its success. Our ambition remains: for everyone to enjoy a coffee in the right place in the right environment. After all, we’re not just a coffee company franchise: we are family.” n