IDENTIFYING KEY FACTORS FOR SUCCESS: A SWOT ANALYSIS OF ZHAI COFFEE

Coffee is one of the most widely consumed beverages globally, and Malaysia's coffee industry has experienced remarkable growth, leading to a surge in the number of coffee shops nationwide. However, the industry has faced significant challenges, particularly since the implementation of the Movement Control Order (MCO) in March. Over 2,000 coffee shops and mamak eateries have permanently closed, with many others at risk of shutting down due to high rental costs and financial strain. To address these issues, the Malaysia Singapore Coffeeshop Proprietors’ General Association (MSCPGA) and the Malaysian Muslim Restaurant Owners Association (PRESMA) have advocated for tax relief for landlords and increased support for private tenants to sustain businesses within the sector. This study aims to examine the internal and external factors influencing the long-term sustainability of independent coffee shops in Malaysia, utilizing SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis. Through qualitative research methods, including in-depth interviews and data collection, the research seeks to provide a comprehensive understanding of these factors. The study uses Zhai Coffee, a coffee shop in Johor, as a case study to explore how internal and external dynamics affect its sustainability. Zhai Coffee was chosen due to its strong reputation for customer friendliness and its collaborative approach, making it an insightful subject for analysis. By investigating the challenges and opportunities faced by Zhai Coffee, this research aims to provide actionable recommendations for independent coffee shop owners and stakeholders. It highlights the inherent fluctuations in the coffee industry and offers strategies to navigate these challenges while capitalizing on growth opportunities. Ultimately, the study contributes to practical insights that support the long-term success and expansion of independent coffee shops in Malaysia.