Article
Q&A with Eric Ersher
Zoup! co-founder talks customers' changing tastes.
August 4, 2008 by Valerie Killifer — senior editor, NetWorld Alliance
It's been 10 years since Southfield, Mich.-based Zoup! Fresh Soup Co. first opened its doors. Growth has been steady for the chain, which has 20 locations throughout Michigan, Pennsylvania and Ohio, but it's about to get better. Company officials recently signed an area-development agreement for units in New Jersey along with an agreement with Michigan-based company AFS, provider of brand-support services, that is expected to help Zoup! grow from 20 to 100 locations within three years.
We spoke with Zoup! co-founder Eric Ersher about the early challenges the company faced and the changing tastes of brand guests. — Valerie Killifer
1. What were some of the early challenges Zoup! experienced and how did the company work to overcome those challenges?
We had been in a related business (providing spice blends and ready-to-use soup to restaurants) so we knew that there was a demand for really good soup and the intangible qualities it elicits — comfort, warmth and well being. We also knew that soup was typically an afterthought, a way for restaurants to use up extra ingredients.
The challenge was to create a brand that: 1) focuses on really good soup, 2) brings the intangible powers of soup to life by creating an authentic experience and connecting with people, and 3) gives rise to an environment consistent with our "Everything Matters" philosophy.
First, we created our "Core Values," which gave us a framework for hiring the right people and training them to be accountable and successful. Then, we focused on the brand and worked hard to develop a strong visual identity, on-point messaging and delivery on the promise of a customer experience that conveyed comfort and well being.
We used our company stores as "laboratories," where we spent several years learning how to choose great real estate, develop and test new products, expand distribution, simplify with technology and problem-solve larger operational issues. Only then did we take our concept to franchisees so they could use the Zoup! model to build their own successful businesses.
2. Where do you see the chain going in the next 10 years and what is the company's strategy to get it there?
We have what we refer to internally as our BHAG (Big Hairy Audacious Goal): To create and lead the soup-differentiated category of the quick-casual segment, thereby making Zoup! a recognized national brand.
To that end, we continue striving to create an organization that's franchisee-focused, that combines Zoup!'s brand strengths and franchisees' talents to help franchisees succeed.
3. Since soup is often categorized as a winter food, how does the brand continue to grow sales during the summer months?
People eat soup in the summer, just as they eat other hot foods. In fact, each year we see a smaller decline in sales due to warm weather. We plan to embrace this trend by developing additional warm-weather promotional strategies in 2009.
And, of course, we also offer chilled soups in the summer months, four in our current rotation are Ginger Butternut Squash, Gazpacho, Cucumber Dill with Yogurt and Tomato Basil Avocado.
4. Do you see the popularity of summer soups, such as gazpacho, increasing? What about soup requests in general?
We have offered more chilled soups this summer than in previous years, and while sales are good, compared to overall sales, the market is fairly small. It does seem that people's interest in all things culinary has expanded the market for trial of more unique products or more unique varieties.
We get a lot of soup requests through the "Customer Comments" area on our Web site, including increased interest in more healthful soups, such as vegetarian, gluten-free fat-free and dairy-free. We currently offer a selection of soups in all of these categories and a recent marketing initiative called "Healthful Favorites" highlighted this message in-store with posters, table tents and a brochure, and externally through a newspaper insert and direct mail piece.
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5. At a large number of your locations, the soup offerings change daily. How large a role does regionality play in regard to soup sales?
We haven't tailored our offerings based on region. With as many soups as we serve (12 daily), we really do have "something for everyone."
6. If you were to give any restaurant industry advice to those just starting out, what would it be?
• Find and exploit areas of differentiation. • Listen and stay close to your customers and franchisees; exceed their expectations. • Create a culture that is authentic and become its model (walk the walk). • Set and reach quantifiable, "non-negotiable" goals; run the business by the numbers. Be disciplined and include a well-thought-out scorecard and weekly financial review.
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