Sam Sam Sam CEO Kim Hun advises reducing failure over aiming for success

During a recent appearance on the Baemin Oesigeop Gwangjang channel, Sam Sam Sam CEO Kim Hun warned that chasing six-month trends can lead to failure due to long investment recovery periods. He suggested that entrepreneurs should adopt a consumer mindset and prioritize low-risk recipe changes over expensive interior design to ensure long-term stability.

In the food service industry, "trends" are a double-edged sword. While quickly adopting popular items can boost short-term sales, it carries the risk of having to close down without recovering massive investments once the fad passes. Kim Hun, CEO of Sam Sam Sam and Teddy Beurre House—known through Culinary Class Wars—recently appeared on the Baemin Oesigeop Gwangjang channel's "Obsessed with Running a Business," where he advised that "trying to stay ahead of trends is a dangerous choice that increases the probability of failure."

"You cannot go all-in on an item that might disappear in six months"

CEO Kim Hun cited the "long investment recovery period" as a characteristic of the food service industry. "Hot items can disappear in just six months," he explained. "Assuming you have 4 million won left per month after excluding wages and labor, the structure requires you to hold out for eight years to recover a principal of 400 million won." In other words, one must choose items that can survive even eight years later. He emphasized that attempting to create trends directly carries too high a risk of failure, suggesting it is more strategic to observe the flow of the public and follow one step behind.

This cautious attitude stems from past experiences. Kim recalled the failure of his first business, a Thai restaurant in Gyeongnidan-gil in 2019, noting, "I chose Thai food because I liked it, but in the Korean market, it was a food people ate only once or twice a year." He personally experienced the risk of choosing an item with a small market size and low popularity based on the producer's preference. He expressed caution regarding choosing items where the market size is unclear, stating, "If it is not in the market, the answer is already out."

MZ Generation's palate focuses on "texture"... "Adopt a consumer mindset, not a producer's"

What, then, is the current trend penetrating the food service market? Kim analyzed that the tastes of the 2030 generation have recently become polarized. In particular, he said, "Nowadays, the MZ Generation is enthusiastic about texture, such as 'crispiness' and 'chewiness'." Representative examples include the bagels from London Bagel Museum or recently trending desserts that emphasize unique textures to provide enjoyment rather than a balance of flavors. He mentioned the phenomenon where consumers seek out desserts filled with cream and fruit between bagels, despite the balance being different from traditional cream bread.

Kim urged prospective entrepreneurs to abandon a "producer mindset" and adopt a "consumer mindset." "Thinking that things will go well because I like them or because I am good at them is the greed of a producer," he added. "Just as a PD who needs to increase viewership cannot only do what they personally like, the only way to reduce failure in the food service industry is to identify the needs of the consumers." Ultimately, he explained that the key is not aiming for success, but lowering the probability of failure by accurately identifying consumer needs.

"Recipes carry less risk than interior design"... Practical solutions

During the broadcast, the concerns of a prospective entrepreneur dreaming of differentiation through trend menus like "Rose Mara Tteokbokki" in a snack street in front of a school were introduced. The concern was whether making excessive changes would be harmful in a situation where traditional snack shops already dominate the commercial district. The questioner expressed uncertainty about whether competing with trendy flavors and interior design would be the answer to surviving in the area.

In response, Kim diagnosed that "making excessive new challenges in an already verified market is something that increases the failure rate." He presented "opportunity cost" as a specific risk management measure. He pointed out, "Changing a food menu is possible through recipe changes alone, so the risk is low, but interior design to match a trend is a task that costs tens of millions to hundreds of millions of won." He warned against such moves, citing a nearby case where someone introduced MZ Generation-style interior design in a commercial district dominated by family customers, only to incur large costs and face difficulties in business.

Ultimately, his analysis suggests that a much more stable survival strategy is to maintain verified items while slightly adjusting the details of the menu, considering the characteristics of the commercial district. Kim concluded his remarks by emphasizing, "The food service industry is a process of reducing failure rather than aiming for success," and "In this market, the person who can hold out steadily and stably is the one who eventually wins."

Source: original video (YouTube)