Innovation

Zoup! is an award-winning soup and sandwich restaurant chain that delivers the utmost quality in their product while emphasizing sustainable production and consumption habits in their day-to-day operations. With a corporate strategy formulated around 14 corporate policies called “Zoupisms”, the company differentiates itself with its strong attention to detail and dedication to customer satisfaction. A innovative business model summarized best one particular 'Zoupism' called "Everything Matters" that ultimately pushes them to operate far above the industry standard.

Charles Trapp, manager of Zoup!’s Guelph, and Oakville location explains this "Everything Matters" concept as an umbrella term that represents the attention to detail and extraordinary efforts Zoup! makes to ensure an optimal customer experience while minimizing the company's environmental footprint and maximizing profit. Zoup! describes the initiative as “Always operating within a framework of principles and uncompromisingly high standards. Standards that influence our space and packaging. Standards that demand the finest ingredients in everything we make. Standards that guarantee the quality and authenticity in every pot, bowl and cup of soup we serve.”

The innovation emerged early on when the Zoup! founders recognized an opportunity to provide soups which were better quality than what was being offered. The founders understood they would need to build their competitive advantage by operating high above the industry standard.

As a franchisee Charles’ managerial strategy is driven by the “Everything Matter” initiative, and it is the motivating force of the extra efforts he puts into the operation of his locations. Things like the reduction of water consumption, improvements toward proper waste disposal, and efficient store lighting are examples of how Charles has recently exhibited going the extra mile, happily admitting he has seen first-hand the quantifiable economic and social benefits of his efforts. Charles also recounts an instance where Zoup! held themselves to this higher standard.

“At our once a year brand audit they will literally tear our refrigerator seals apart to check for inconsistencies or grime,” he says. He explains how the health inspections are a breeze compared to their own brand standards. This, just one example of how the “Everything Matters” initiative has Zoup! holding themselves to a higher standard in an industry where they feel an investment in social responsibility, and customer satisfaction has a large economic return. Charles may say it best when he explains that “while all of this may seem extravagant for a business like ours, without it, Zoup! would merely be a soup.”

Inspiration

Zoup! Is a made-to-order soup restaurant franchise, that is making a name for themselves with their premium and proprietary soups. In the interview we asked Charles about the "Zoupisms" and "Everything Matters" innovation that represents Zoup! as a franchise. This is what he had to say: “I have my Zoup! cup here that has the fourteen Zoup! philosophies. If you notice one of them is 'Everything Matters' and that is on our wall. One of the things that really impressed me, because I ripped companies horribly when doing my school work about their corporate social responsibility, is that when I went down to see these guys (the CEO of Zoup) about doing a franchise, they talk about their Zoup philosophies and after having done this analysis for my school work you’re a little bit jaded, but the founder of the company... this is who he is, this is the way he is, videos you see online that’s him. Its real and they live this, and that is really refreshing, that is genuine, so you know everything does matter really does matter to them.”

Eric Ersher is the Founder and CEO of Zoup! he opened his first store in the state of Michigan in September of 1998, and has seen exceptional growth since then. Zoup! has now over 37 stores in nine states and Ontario, growing at a rate of currently 12-16 stores a year. Mr. Ersher came across the idea of Zoup! when he first started a spice business. Ersher came to two conclusions which began this inspiration; Good soup is hard to find, and people connect soup with thoughts of comfort, family, and well-being. When Zoup's first location opened in Southfield, Michigan in 1998, soup was the only thing on the menu. Zoup! has now expanded into offering sandwiches and salads, this franchise has 12 soup wells, and over 100 soups that rotate through the stores. Mr. Ersher was never motivated by money, he just loved what he did and seeing the satisfaction out of his customers. He said, “the focus from the outset was to do what we were doing really, really well, and trust the rest will fall into place.”

Overall impact

Zoup!’s business innovation has resulted in an unquestionable commitment to sustainable operations. Although some of the efforts seemed tenuous, Charles assured us that the commitment to the “Everything matters” philosophy produced a quantifiable impact on the business itself, as well as the surrounding environment. Reducing their ecological footprint, and becoming more involved in the community has not only saved Charles money in the short-run, but also helped in building a positive long-term customer perception of the Zoup!. Given that Zoup! is selling such a unique product (fast-food soup) building this customer perception has been a key factor as to why they have stayed so competitive in the restaurant industry.

Business benefit

Zoup’s “Everything Matters” philosophy really sets the tone for their business, and proves to contributes to the success of it. It means that everything matters to them from their day-to-day interactions with the customers to their internal controls and how the business is run. This benefits the business as they strive to deliver exceptional service to the customers, by doing things such as, looking at every single review on twitter, Google, yelp, as they have teams of people for every aspect of the company that are able to address these issues and directly input them into the franchises. This helps with customer complaints, as issued can be addressed efficiently and effectively whether they are in store or online. They are also very environmentally friendly as they try to reduce their consumption of energy and their waste to the environment; this not only helps the environment but also helps the business because they are able to reduce a significant amount of their monthly bills. They reduce their water, heating, and electrical bills by a significant amount each month just by being cautious and only using what they need. They are able to increase their margin of profitability each month while at the same time helping with sustainability and the environment.

Social and environmental benefit

Owner Charles Trapp wants to effect change, and Zoup’s “Everything Matters” motto really shows the image he wants to set for the business. Zoup! offers many opportunities where they are both social and environmentally responsible. Socially they have become quite involved in the community of Guelph. From supplying a kid’s basketball program with free lunch’s every week for 6 weeks, to donating 10 gallons of soup to the “Three Rivers Church”, as well as holding fundraisers where all sales are donated between certain hours in a day. These are just a few of many great things that Zoup! does to give back to the its community.

Zoup! also takes into consideration the environmental impact of its business. They take many steps to reduce their ecological footprint, such as lighting the store with LED lights, reducing the cooling in the store to only the most practical locations, purchasing a dumpster for only cardboard, installing low flow toilets, and even programming the use of all electronic appliances. Those are a few changes owner Charles has already implemented with their “Everything Matter” campaign, as you can see they impact the business socially and environmentally.

By taking these steps and changes, Zoup! will see changes in both the long run and short run. In the short run, the company will see profits decrease a little due to the free-food donations and the cost of buying new environmental and efficient appliances (light bulbs, water heater, toilets, etc). But in the long run, they hope to see an increase in profits as their brand reputation will improve further and gain new customers who have tried and enjoyed their product. The moves should also reduce expenses due to the more efficient appliances. Those are a few ways how Zoup! will be impacted in the long run and in the short run.

In addition, Charles says: "Instead of doing a lot of print advertising I do prefer to do things that will give back to the community...”. He then continues to explain all that he does for the community of Guelph, and how it will benefit Zoup! in the long run. When we ask him about how the “Everything Matters” motto reflects the environment of Zoup!, he comments: “Start cutting the little wastes during day-to-day operations by being more efficient environmentally you're actually saving money. [That amount to] huge money in the long run”. He goes on to explain the exact ways he has followed through on this and what he has planned for further changes. Charles seems to have a handle on how he plans to incorporate the “Everything Matters” motto into success for Zoup! environmentally, and as well for society.

Interview

Charles Trapp, Manger/Franchisee