"I'm telling you, the wave is here now!"
Meeting Cupbop (CUPBOP) CEO Song Jeong-hun in Seoul on Apr. 4, the word he mentioned most often in conversation was "wave." A massive wave of global interest in Korean culture has arrived, he said, meaning don't hesitate—get on it fast. His tone was grave and firm.
In 2013, Song used his entire savings of 15 million won to build a 2.4-pyeong food truck in Utah and began selling Noryangjin-style cupbap. He has since grown it into a food and beverage (F&B) corporations with annual sales of 60 billion won. A former dancer in Korea, Song, who could barely speak survival English, built a dining business in the United States. In 2022, he appeared on ABC's reality audition program "Shark Tank," drawing buzz after receiving investment offers from all the judges.
According to the industry on the 8th, Cupbop, which marks its 12th anniversary this year and has sold a cumulative 35 million bowls, is now heading beyond the United States to a bigger world. It operates around 60 stores across seven U.S. states and about 220 in Indonesia, and opened its first store in Dubai, United Arab Emirates (UAE), in Jul. 8. A Canada launch is also ahead.
At a time when the influence of the Korean Wave is greater than ever, Song's success story offers lessons to dining businesses looking overseas. The reason he published a book titled "Out of the Track" in Jul. 7 is also because more people have been seeking him out.
Song said, "Personally, I don't like the word 'K.' When you tack on K, the meaning feels confined, so I use 'Hanguk' and 'Korea' more," adding, "They say there are more than 50,000 chicken shops in Korea, and I want to show there's a bigger world. I hope many people keep riding the waves that keep coming." This interview was completed by adding a written Q&A after a first interview with Song during his visit in Apr. 4. The following is a Q&A.
― Marking 12 years since founding. How do you feel?
"It feels like crossing a mountain every day. I learn something new every day. After the United States and Indonesia, we opened our first store in Dubai in Jul. 7. We also signed a contract with a Canadian F&B corporations to open stores. Our overseas business didn't expand artificially; every deal came from inbound proposals. In Dubai's case, RMAL Hospitality of the Al Fahim group had been asking for about five years, and we agreed to open 10 stores in the United Arab Emirates. We plan to enter Saudi Arabia and Iran as well."
― Did Cupbop do well from the start?
"At first, it didn't draw attention. It was before Psy's 'Gangnam Style' became known, so Americans were unfamiliar with both the country Korea and its food. I dug through the trash, took out discarded ingredients (mushrooms, spinach), and created a localized cupbap menu leaving only glass noodles, carrot, onions, and so on. We also modified the sauces to suit American tastes. Like Subway, we made spice levels from 1 to 10 for customers to choose.
"Instead, we used the Korean culture of jeong, heung, and deom for marketing. Even without an order, we'd throw in dumplings as a free extra, or mix japchae like a mom would and say 'ah~' while feeding it to them. People were startled at first, but when you smile and give it for free, no one refuses. We call jeong 'Korean love' and deom 'extra giving.' That's how we explained our culture and taught them Hangeul as well."
― Has interest in K-food grown recently in the United States?
"Americans enjoy content as culture. When a new 'Star Wars' comes out, they watch it in character costumes. They watched the drama 'Squid Game' and played jackstones with big hands, and if a movie shows 'black noodles' (jjajangmyeon), they go look for it to eat. But there aren't many places to experience (try) it.
"When I came to the U.S. 20 years ago, Koreans were mostly running Japanese restaurants. They would pretend to be Japanese and shout 'arigato gozaimasu (thank you)' while doing business. Now, 'annyeonghaseyo' is the hot word. But there aren't many players who can pronounce that 'annyeonghaseyo' properly. In Utah, there aren't even 10 Korean-style chicken places. More than half of the Korean restaurants are Korean barbecue run by Chinese owners."
― There's a perception that the United States has high entry barriers.
"A few years ago, when a certain beer franchise in Korea was sold for a little over 100 billion won, I was shocked. It had about 1,000 stores, meaning it was valued at 100 million won per store. Mexican chain Chipotle, with 2,500 stores, once had a valuation as high as 120 trillion won. (Its current market cap is about 79 trillion won.) What's the difference? Scalability. In Korea, there's simply nowhere left to open more stores.
"The U.S. is an unimaginably large market. Of the world's top 50 F&B brands, about 70–80% are American. McDonald's (burgers) and Starbucks (coffee) are No. 1 in the U.S. and No. 1 in the world. No matter how well you do F&B in Korea, no one gets a 1 trillion won valuation. But in the U.S., there are companies everywhere valued in the tens or hundreds of trillions. Doesn't that sufficiently answer why you should go to the U.S.?"
"It's not just the U.S. There's a huge opportunity for Korean food worldwide, but it's unfortunate there aren't enough players. In the U.S. now, Chinese and Japanese people are running Korean restaurants while posing as Koreans. There aren't many real Korean restaurants made by real Koreans."
― Do you think Korean food is competitive in the global dining market?
"What's taken for granted in Korea isn't taken for granted abroad. The ordinary here becomes special there. The reason a cupbap that costs about 3,000 won in Korea can sell for 15,000 won in the U.S. is because a 'premium' attaches to it. You have to go where you can add a premium to your product. This is also why I don't sell cupbap in Korea.
"What we have in abundance is lacking locally. Even with desserts, the cute decorations common in Korea are hard to do in the U.S. The moment you step out of the Republic of Korea, it becomes a premium. I hope you enjoy that merit too. They say there are 50,000 chicken shops in Korea alone. Don't fight it out fiercely in Korea—come where you can seize opportunities."
― What do you say to those seeking business advice?
"Not long ago, someone drove 7,000 kilometers round trip over a week from Mexico to visit our office. They came unannounced saying they wanted to do Cupbop. Some have come from Africa, and I get many emails and Instagram DMs. What I commonly tell them is, 'If I can do it, you can do it.' Don't overthink—just try it. When I first started the food truck, I bought the truck first. I hadn't even developed the menu yet, but after buying the truck, I set the menu and started the business within a few months."
― Isn't that reckless?
"If you don't act, you'll keep finding reasons not to. When I first said I'd sell cupbap in Utah, nine out of 10 people opposed it. They'd say it's not the time, partnerships will sink you, you're too old. If you're ready, don't delay—start. I invested all my assets to buy the truck, so I had to do it. Let go of the desire to be perfect. It's more meaningful to improve while making mistakes.
"Looking at my background, I'd never studied once and had spent my life dancing. I don't speak English fluently, and my parents weren't wealthy. Yet I'm doing it—though it's tough. I think it's a difference in mindset. Actions that go beyond thought become a life."
― What are your goals going forward?
"To make Cupbop the leading Korean food brand. To that end, we're working to promote Korean culture and identity. In Cupbop stores, we also feature Korean products like Shin Ramyun, Milkis, and Bungeo Samanco. Some corporations like Nongshim even made products tailored to our needs. With Coca-Cola, we signed a contract to use a Hangeul brand. On the Coca-Cola machines in our stores, you can see the word 'Coca-Cola' written in Hangeul."
"Cupbop's slogan is 'Conquer the universe with Cupbop.' The practical goal is to make it so you can eat Cupbop anywhere in the world. It doesn't mean opening lots of stores just to make money. I want people to say, 'Koreans made that brand,' 'There are really fun and kind people there,' 'I want to work that happily too.' Interest in Korea is truly growing. I hope many people ride this wave. It's more fun when we ride together."