The defendant, whose full name is Elvis Aaron Presley, pleaded not guilty at Preston Crown Court to threatening the alleged victim with a folding pocket knife at the shop in Dickson Road, Blackpool, on January 23.
Presley, wearing a brown coat and black shirt, confirmed his name after he entered the dock and asked his nationality replied: "Irish."
A second charge, of assault by beating the same victim during the incident, was also put to him.
Presley replied: "Guilty. I didn't beat him, I punched him."
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The defendant appeared hard of hearing and conducted a three-way conversation, with the prison officer in the dock relaying the words of the judge and court officials to him, during the brief hearing.
Paul Brookwell, prosecuting, said the pleas entered were not acceptable and there would have to be a trial before a jury on the charge of having the knife to threaten Mr Ayub.
Judge Nicholas Barker set a date of July 11 for a two-day trial at the same court and bailed the defendant on condition that he does not contact his alleged victim.
Elvis Presley left the building pursued by press photographers.