Starbucks Corporation has done well in overseas markets, but not in Greece. The reason for this is local Mikel, a popular destination for young Greeks. Mikel has opened 84 stores and has planned another 25, whereas Starbucks has stuck at 40 stores.

The new chain from northern Greek Larisa is spreading rapidly, fueling a price war with Starbucks that hasn’t been seen in other markets. Though Mikel appears to be a localized replica of Starbucks, however there are a number of localized offerings that place it ahead of the U.S. chain. It operates as a traditional kafeneio (coffee shop) which opens early in the morning and offers sit-in coffee services, it also has the coffee stand for coffee to go and a club bar in the early evening hours with alcoholic beverages under dimmed lights and loud music.

Another difference is that Starbucks is a one-person self-service show with the barista performing every task, whereas Mikel is a multi-person sit-in service enterprise with waiters who take orders and baristas who serve.

Mikel’s phenomenal success,  according to Forbes is due to three factors 1) declining commercial property values that helped the cahin open stores at an affordable rent in central locations 2) soaring youth unemployment rates that helped the chain to recruit university graduates at low wages 3) nationalistic sentiment among Greek consumers with a “buy Greek mentality” wanting to help out their fellow Greeks during the economic crisis.

Mikel is open daily from 6 am to 10 am and offers a number of coffee varieties and a 35 % discount for coffee to go in a paper cup rather than foam.