zus coffee case study

The population of social media users in Malaysia increased by 2.3 million, which accounts for approximately 8% of the population, between 2021 and 2022. Nowadays, dissatisfied customers often express their grievances and seek retribution on social media when they feel mistreated or ignored by organisations. However, this phenomenon has negative implications and can potentially lead to significant social media crises. Therefore, effective crisis communication is crucial for organisations. Nevertheless, many organisations frequently fail to implement the best crisis response strategies during the crisis, which could damage their reputation. In this research, an inductive qualitative approach will be used to identify the organisation’s crisis response and crisis response strategies during a crisis, and to investigate the impact of an organisation’s crisis communication in social media on netizen behaviour. Purposive sampling method will be applied to select the sample of crisis response and crisis response strategies, where three statements posted by ZUS Coffee on Facebook will be selected as sample to analyse. Besides, a simple random sampling method will be applied to collect data on netizens’ behaviour, where a total of 1,000 Facebook comments from netizens under the statements of ZUS Coffee will be selected using simple random sampling methods. Content analysis will be used to analyse the data collected. The findings revealed that the most used of crisis response by ZUS Coffee is meeting the public’s communication needs and the most used of crisis response strategy is corrective action. However, the impact of ZUS Coffee’s crisis communication on netizen behaviour on social media was predominantly negative. The discussion draws on relevant journal studies and there are some similarities and differences compared to the other studies.

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“Blue is the New Green”: An Analysis of ZUS Coffee’s Corporate Image and Corporate Culture

This paper delves into the corporate image, culture, and philosophy of ZUS Coffee, a leading player in the global coffee industry. Through a comprehensive analysis of organizational values, social impact initiatives, and employee experiences, the researchers aimed to understand the alignment between ZUS Coffee's projected image and its actual corporate culture, as well as the relationship between its corporate philosophy and culture. The findings reveal a strong alignment between ZUS Coffee's corporate image and culture. The company's emphasis on accessibility, quality, and community resonates positively with both customers and employees, evidenced by initiatives such as sustainable sourcing and eco-friendly practices. Furthermore, a symbiotic relationship between ZUS Coffee's corporate philosophy and culture was observed. The company's philosophy of accessibility and quality guides its culture, which, in turn, reinforces and shapes its philosophy, contributing to a cohesive organizational identity. However, the assessment identified areas for improvement, including concerns regarding work-life balance, communication issues, and discrepancies in sustainability practices across branches. Addressing these concerns and ensuring consistency across all branches will be crucial for enhancing ZUS Coffee's overall corporate culture and philosophy. In conclusion, this paper provides valuable insights into how ZUS Coffee's corporate culture and philosophy contribute to its success in the coffee industry. The alignment between corporate image and culture, coupled with the symbiotic relationship between philosophy and culture, underscores the significance of organizational values in shaping business outcomes and employee experiences.

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ZUS Coffee reclaims its Malaysian identity: What makes a brand truly Malaysian?

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Malaysian coffee chain ZUS Coffee seeks to settle the argument on whether the brand is a local or international one in a hilarious new brand film that takes place in court. The film was done in conjunction with advertising agency Fishermen Integrated which features comedian Kavin Jay and content creators Arieff Yong and Ryan Howlet with ZUS Coffee on trial to determine if the brand is truly Malaysian. 

“At a time where coffee aficionados prefer top-tier international coffee, local brews have been at the receiving end of unenthusiastic perception,” said the brand in a statement.

Don't miss:  Telekom Malaysia blends music and generative AI for national day

“However, in this short and sweet production, ZUS Coffee, Fishermen Integrated and their partners Imagineers Film successfully captured Malaysian pride and proved that ZUS Coffee’s Malaysian-made blend is on par and equally as delectable if not greater than their international counterparts,” the statement explained.

The film sees ZUS Coffee take the stand in a court trial as its defence seeks to prove that the brand is local against the prosecution that claims the brand is an international one due to its fancy name and high quality. Kavin Jay, who plays the defence lawyer for his client ZUS Coffee shares that it is common for brands to have glamorous-sounding names and that a name should not be taken too seriously. To prove his point, Jay mentions the Pulau Kentut islands that have names that mean “Fart Islands”, but should not be avoided due to the negative connotation behind their name.

Jay also shares that local quality does not equate to low quality but one that caters to the taste of the Malaysian palate to further prove that ZUS Coffee is truly a Malaysian brand.

“The campaign which showcases the Malaysian spirit hopes to spread the message that local quality is not low quality. As Malaysians, we are more than capable to produce products and deliver services that are of world-class standards, as evidently so,” said Mark Darren Lee, the managing director of Fishermen Integrated. 

To further highlight Malaysian pride, Malaysian brands such as Julie's, Farm Fresh, Inside Scoop and Boh make a cameo in the brand film, cheering ZUS Coffee on in the trial.

“Our partnership proves that Malaysian brands are capable of delivering top-notch products and services and in the case of this collaboration, we're proud to have produced such a heart-warming piece that has resonated with our fellow Malaysians and our "buatan Malaysia (Made in Malaysia)  champions!" said Stephy Foong, vice-president of growth and marketing at ZUS Coffee.

Since its launch in 2019, ZUS Coffee currently has 270 stores nationwide and prides itself on employing local crew members to ensure that its products suit the local Malaysian taste, according to a statement by the brand. 

What makes a brand Malaysian?

This is not the first we have seen of Malaysian brands elevating their brand identity beyond its Malaysian heritage. There are many brands that initially found their footing on Malaysian soil but grew their brand internationally over decades. Brands such as Jimmy Choo, BritishIndia and Giant have expanded their operations and elevated themselves beyond the title of a local Malaysian brand. 

However, that begs the question, what makes a brand Malaysian?

Mark Lee, the co-founder and head of digital at Fishermen Integrated said that when local brands go international, there is still an intrinsic footing in where it found its initial success. Brands such as Jimmy Choo, he said, bring pride to Malaysia because it maintains the spirit of Malaysia. "This comes with the understanding that these brands were initially created to address the needs of and elevate the quality of living of Malaysians," he added.

When it came to Zus Coffee's desire to reinforce its Malaysian heritage through this campaign, Lee provided insight that it is all the more significant considering the hot seat Malaysia has found itself in as of late.

Especially with the 1975 debacle that unfolded in July as well as the Swatch crisis  that found Malaysia being targeted for its supposedly regressive politics, Lee noted that the country was being put down internationally.

However, in Malaysia the scene was slightly different. He said that coming under scrutiny and criticism actually helped bring Malaysians together and reinforced the "oneness" amongst it people. Therefore, Lee explained, Zus Coffee found it to be an opportune time to show off that in spite of adverse situations, Malaysians maintain a stronghold on their culture and values.

"From the comments under the video, we could see that everyone is surprised that Zus Coffee is Malaysian, because people may stereotype Malaysian products to be of lower quality. However, that is not the case. We do produce quality products and that should be recognised," Lee added. 

Dorothy Fong, founder and CEO of IDOTYOU believes that simply because a brand is made in Malaysia does not make it authentically Malaysian. "The brand must have a strong conviction to bring out the culture and identity of Malaysia," she said. Once a brand does so, she said, even if it goes international, it will be recognised for its Malaysian-ness.

No matter what a brand becomes, people always trace it back to its founding story.

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Venon Tian’s playbook: ZUS Coffee’s COO on managing people & core business philosophies

In this article

Before Venon Tian became the face of ZUS Coffee , he was in the business of laundromats. And before that, he was actually a law grad.

These were some of the interesting facts we got at Venon’s recent Dining With CEO event, which you can read more about here .

Aside from those titbits of information, Venon also dived into some of his core philosophies on how he runs ZUS Coffee. Here are some of the advice from his playbook.

Execution eats strategy for lunch

There’s no doubt that ZUS Coffee has had plenty of strong strategies and campaigns that have brought them to where they are today.

But the thing about innovative strategies and cool campaigns is that technically, anyone can execute them.

For example, ZUS Coffee has released a Buttercrème latte, even though a competitor has been well-known for their signature buttercream drink.

But the way Venon sees it, “To us, it’s less of the idea, more of the execution.”

He pointed out that every café does Americanos, lattes, and cappuccinos—it’s not like they’re copying from each other. And some do it better than others, despite it being the same drink.

“We have this very famous internal saying that we use,” Venon said. “Execution eats strategy for lunch.” 

You may have heard some variation of this, but it basically means that the actual execution of an idea or a plan beats just having that strategy.

Company culture is most certainly not bullshit

When asked about what some of the biggest challenges Venon has faced at ZUS was, he said: the people.

While day-to-day things such as supply chain issues, procurement, and logistics do crop up, it doesn’t seem to come close to things such as structuring the company and hiring the right people, Venon said.

“Managing business is objective. It’s SOPs, it’s theoretical, it’s execution. For people, you have to handle emotions, which is the hardest thing,” Venon said.

He went on to say, “Some of you may have heard my talks. I used to say culture is bullshit. But I’m wrong. Totally wrong.”

He shared a tale of how hiring a wrong key leader resulted in toxic behaviours all the way down in the HR department, which ended up having domino effects such as issues with late salary payouts and an inability to hire the right people.

Toxic hires can often go undetected, so building a culture that actively weeds these people out is key. Leaders must also be observant and not overlook how one bad apple can topple many business processes, especially when the culture is weak. 

Don’t limit yourself with the industry boundaries

At one point of the session, Venon was asked to give some advice to aspiring F&B entrepreneurs.

He jokingly responded, “Don’t run F&B.” 

However, as he elaborated, we learnt that there’s some truth to what he said.

Instead of seeing ZUS Coffee as an F&B business, Venon revealed that he sees it as an ecommerce business, and therefore runs it as one.

“Coffee is just one of the products,” he pointed out.

Unlike the more traditional business models in F&B, ZUS looks into things such as UI/UX, customer lifetimes, retention rates, and more metrics that ecommerce businesses look at.

Invest in capex to save on opex

“The question we always ask ourselves is, as we scale, how do I not need to hire more people,” Venon shared. “Not because we don’t want to not hire people, but because of the jobs are very much mundane and boring.”

An example of such jobs he provided was QA—quality assurance. Currently, the ZUS team has 13 auditors conducting QA for 336 stores. That means that if the chain expands to, say, 600 stores, they’d need a department of 26 doing that.

“And these are all young, new team members. You have to train them, then there’s retention rates [to think about],” Venon elaborated. “So, how can I utilise technology instead? Maybe it’s going to cost me more, but over the next five years, it’s going to save on operating expenses.”

As such, he said that the ZUS team are believers in terms of investing in capex and saving in terms of opex down the road. Plus, solutions like these also serve as a workaround to the challenge of managing more people.

Innovating the future

One way ZUS Coffee sets itself apart from other brands is its tech lean, such as through its own app. One cool thing we learnt is that the app actually uses weather information to determine whether an area is raining. If so, the app actually pushes out discounts so more people may consider getting drinks.    

In any case, being a tech-savvy company, a key thing for ZUS is innovation. With that in mind, Venon shared that the company is actually establishing a ZUS Innovation Centre. Here, R&D will be conducted, not just for products but also for tech.

On staying abreast on trends with the latest innovations in the industry, Venon shared that he likes to read articles. But not just any articles—Chinese articles.

“My Chinese is bad, but I try very hard,” Venon admitted. The reason for his effortfulness is because he believes Chinese business reports tend to give the latest business and technology insights in a very detailed manner.

Meanwhile, he finds articles from the West to be more “fluffy”. That said, he thinks reading a blend of both Western and Asian media is definitely recommended.

At the end of the day, though, Venon said that a lot of the philosophies he lives by is “not rocket science”. A lot of it is just learning as they go, one step at a time.

“There’s no secret formula,” he shared. “It’s just how much you believe in it.”

• Learn more about ZUS Coffee here .
• Read other articles we’ve written about ZUS Coffee here .

Also Read Sick of mistakenly buying fake products online? TikTok Shop has a solution for M’sians.

Featured Image Credit: Venon Tian

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Surveillance System for Food Manufacturing Facility Case Study: Peet’s Coffee

• Ronnie Wendt
• Security Systems
• July 17, 2024

Just The Facts

Customer:  Peet’s Coffee & Tea Inc.

Location: Alameda, California

Challenge:  Protecting proprietary roasting processes and keeping employees safe.

Solution: Around-the-clock video surveillance and the ability to store video for up to 90 days on site.

Results:   A modern video camera system that oversees roasting processes and secures the perimeter and an on-prem RAID video storage system.

Customer Challenge

Peet’s Coffee & Tea Inc. operates a 145,000-square-foot coffee roasting plant on a 12-acre piece of land in Alameda, California’s Harbor Bay Business Park. 

Using only top-notch beans and a precisely calibrated roasting system helps the nearly 60-year-old manufacturing company achieve a rich and sweet flavor profile for its coffees. But there are proprietary processes Peet’s Coffee prefers to keep confidential. In the competitive coffee industry, roasters guard their secrets from their rivals, explains Zachary Palmquist, project manager for Safe and Sound Security.

To prevent trade secrets from getting out, Peet’s Coffee hired Safe and Sound Security to install an enterprise surveillance system. The result of their work was an extensive video camera network and RAID (redundant array of independent disks) server that stores video footage using the following technology:

• Milestone Video Management Software
• Axis Communications Security Cameras
• Milestone RAID System

Now, as Peet’s Coffee operates its massive production facility 24 hours a day, it can keep a watchful eye on product quality and worker safety with a 72-camera video surveillance system and RAID server that stores video footage for up to 90 days. 

The Need to Monitor an Active Facility

Peet’s Coffee & Tea operates a massive roasting facility that comprises coffee bean cleaning machines, roasting machines, packaging equipment and a vast network of conveyor belts. 

Palmquist describes it as a bustling place where beans are received at loading docks and then moved to the pallet storage area. The beans are then transported to washing stations via conveyor belt before being moved to drying machines. Next, a different conveyor belt transports them to machines that roast beans according to the preferred coffee variety, whether it’s dark, medium, or light roast. Finally, roasted beans are transferred to packaging equipment via hoppers.

Palmquist mentions there are multiple elements at play as the company moves hot beans. “They are not just moving a gallon or two of beans at a time. They are moving giant bags of beans that require a forklift to move,” he says.

As action and speed take center stage, the chance of worker injuries escalates, he explains. “People can get burned or crushed, lose fingers, you name it,” he says. “Peet’s No. 1 goal is to keep their employees safe. They do this by making sure employees adhere to policy and procedure.” 

The company’s goal is to avoid incidents altogether and have video evidence when needed. “They don’t want to be held accountable in a court of law [after an incident] because they lack video footage,” Palmquist explains.

Install a Video Camera Network

Installing security cameras marked the starting point for achieving the company’s goals for safety and security. Safe and Sound Security initially installed 73 ONVIF-compliant cameras from Axis Communications; cameras Palmquist says were selected for their top-tier image quality. 

ONVIF, which stands for Open Network Video Interface Forum, is a universal standard that enables IP-based physical security devices to connect and communicate. Because of this interoperability, businesses can employ systems from multiple brands, all operating under a single communication standard. 

“In other words, an ONVIF-compliant server software can communicate with ONVIF-compliant cameras,” he says. “That capability allowed us to use Axis cameras with Milestone video management software.” 

The next step was to determine where cameras would be located inside and outside the facility, according to Palmquist.

The safety coordinator, maintenance director, and site director from Peet’s Coffee conducted a site walk with Palmquist to determine locations and specifications for the surveillance system. Palmquist used a tablet computer and System Surveyor security designer software to map out every camera location. 

“They shared details about the places where incidents and traffic are most prevalent, prompting us to install cameras in those specific areas,” he says. “Then we started talking about how we’d mount the cameras and where we’d run the cables.”

Palmquist consulted with the company’s network director to determine which parts of their infrastructure they could utilize, only to find out that its fiber optic network was off limits. In order to maintain the integrity of the company’s network, the network director asked them to design a local area network (LAN) for the security cameras that operated separately from the company’s existing network.

Palmquist explains it’s actually easier sometimes for technicians to build a new network versus relying on existing infrastructure. “Everything is brand new and clean. All the cables are in good shape because we are installing them,” he says. “And the job goes faster because we don’t have to wait for their network teams for anything.” 

However, he admits it is more expensive to do things this way. “If you have to run fiber, it can get expensive. It can run in the many thousands of dollars, depending on its length,” he says. “But in this case the expense did not matter. They wanted the peace of mind that we were not touching their network.”

Next, Palmquist plotted out areas where new network cabinets and cables would go. Network racks had to be within 320 to 328 feet from all cameras for communication purposes. Cat6 cable loses amperage and cannot power PoE cameras when the distance exceeds 328 feet, Palmquist explains. 

Peet’s Coffee soon enlisted Safe and Sound Security to secure their parking lot after the initial camera installation.

“They were having issues with employees’ cars getting broken into,” he says. “They had footage of the break-ins but didn’t have a license plate number.” 

Technicians solved this problem by installing license plate recognition (LPR) cameras that captured vehicle plate information from all vehicles entering the facility, including semis going to the loading dock and guests and employees accessing the parking lot. 

“We installed Axis LPR cameras with a long range lens on them,” he says. “It’s a 32mm zoom lens that lets them zoom in and capture all plates as vehicles enter and leave.”

Developing Video Storage

Safe and Sound Security installed a RAID system on a network rack to meet the company’s goals for on-premises video storage for up to 90 days. 

“They would not allow for cloud storage. They wanted everything on site,” Palmquist explains. 

The resulting RAID server contains 24 individual hard drives, providing 280 terabytes of storage for 90 days’ worth of camera footage. “The RAID is basically a big storage bank for camera footage,” he says. “It has a redundant array of drives so that if one drive fails, there’s another drive with an exact copy of what was on the drive that failed. Because of this, they will never lose video footage.”

The RAID server also never shuts down, he adds. “It has redundant power supplies, so that if one power supply fails, there is another that will kick on immediately,” he says. “It also has redundant network interface cards. There are four network interface cards on the server, so there is always a network interface card available for the cameras to get footage to the server.” 

The Uninterrupted Power Supply for the RAID server is essentially a battery backup system. In the event of a power outage, it allows the server to run for 30 minutes before shutting down. “But it will shut down cleanly,” he says. “There won’t be an abrupt stop to all the hard drives, so there will not be any loss of data.” 

Unique Work Considerations

The biggest hurdle for installation was the busyness of the facility itself, he adds. 

“This place never shuts down, so trying to maneuver around machinery, forklifts, pallet jacks and employees made for a challenging installation,” he says. “It took a lot of coordination with their plant management team. We met with them two to three times a week. But our guys nailed it.”

Keeping technicians safe as they did the work was also a concern. Every technician had to don full personal protective equipment (PPE), including steel-toed boots, hard hats, safety glasses and full food-grade suits.

The heat generated by the roasting machines also created unique considerations, adds Palmquist. Palmquist explains the temperature at ceiling height was too hot for the Unix PoE switches, despite their being equipped with little fans and temperature sensors.

“We couldn’t mount them all the way at the top, so we mounted them halfway up the poles that hold the structure up,” he says. “Their electrician brought outlets to our network racks, which has an inbound and outbound fan to keep the equipment inside at a nice cool temperature.” 

Tweaking Milestone software, which is complex and has advanced configurations, is typically done online. But because Safe and Sound Security could not access devices remotely due to Peet’s Coffee’s network limitations, they had to install the cameras and then adjust them from a desktop computer. 

“This took a lot of coordination,” Palmquist says. “The techs would work on the cameras, and I would tweak the software from the PC.” 

Training & Maintenance

Peet’s Coffee entered a comprehensive service level agreement (SLA) with Safe and Sound Security to cover training and maintenance. With this agreement, Safe and Sound Security offers training and its technicians come out to do maintenance, updates, and repairs on the security system whenever necessary.

“Normally, with SLAs, we can get into the systems remotely to do this work,” he says. “But we are not allowed any remote access to Peet’s security system. Whenever they need service, we dispatch a technician to the site because they do not want it connected to the Internet.”

He explains Peet’s Coffee is concerned about keeping proprietary processes secret. “All coffee growers have their own way of roasting their beans and other processes that differentiate their coffees from the competition,” he says. 

While providing support this way presents unique challenges, Palmquist says technical support is still available 24 hours a day on weekdays with emergency services available on weekends. 

That hiccup aside, he says, the system works exactly as intended. “They have had situations happen where I had to go out and pull the footage for them,” he says. “But the footage was available and provided them with everything they needed to keep workers safe and proprietary processes protected.”

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