[Good Job SME]⑪ "Tteokbokki, the Key is 'Taste'... We Didn't Spare Investment"

Competing with Flavor '33 Tteokbokki' Sandol Foods
Made Just Like Homemade
CEO Lee Hoseong "The Best Welfare is Fair Performance Evaluation"

'Chuncheon Soup Dakgalbi Tteokbokki' is a home meal replacement product that has recorded unprecedented hits in e-commerce and other channels. Even major food corporations have released similar products. This product was launched under the brand name '33 Tteokbokki,' which is also the name of a tteokbokki franchise. Since the first store opened in 2016, 33 Tteokbokki now has over 220 stores nationwide. The 33 Tteokbokki consumed in homes and stores across the country is made by Sandol Food, a food manufacturing company. Sandol Food’s factory, located in Hongcheon-gun, Gangwon-do, produces not only tteokbokki but also kalguksu, naengmyeon, and sujebi. Although they handle various product lines, their goal is the same. The most important thing is 'taste.' We spoke with CEO Lee Hosung about how they create and maintain this.

Lee Hoseong, CEO of Sandol Foods

CEO Lee said, "Our research center conducts professional research and development on taste," adding, "The R&D department is separate from the quality department, allowing us to focus solely on research and development." If you think all tteokbokki tastes are just spicy and sweet and basically the same, that’s a misconception. CEO Lee has repeatedly researched to achieve a deep flavor in the sauce. He explained, "We make the sauce as if we were making it at home. While other companies use inexpensive and convenient powdered sauces, we grind green onions, garlic, and onions directly into the gochujang." Although this makes the raw materials more expensive, the difference in taste is noticeable, and consumers recognize this without needing to be told, according to CEO Lee.

Creating great taste requires not only research but also investment. Sandol Food has spared no expense in equipment investment. CEO Lee said, "We use equipment that rapidly freezes each warm rice cake at its freshest state before moisture evaporates to preserve the taste," adding, "When cooked, it returns to its original state." In the case of naengmyeon, the process from dough to product packaging used to take 48 hours, but now, through automated processing equipment, it has been reduced to a maximum of 40 minutes. Shorter manufacturing times help maintain better taste.

CEO Lee, who gained experience in the food industry while working at CJ, started his own business in 2004. The market had low barriers to entry, with many small-scale companies fiercely competing on price. However, CEO Lee believed that focusing on the original 'taste' with high-quality and safe food could lead to success. This has been the driving force behind the company’s growth for nearly 20 years.

Sandol Food Production Line

However, manufacturing alone showed limits to the growth of small and medium-sized food companies. This is why CEO Lee entered the franchise business in 2016. He said, "Since we make rice cakes, broth, and sauces, I thought that if the business model was accurate, we could succeed." The most important aspect of the franchise business model he established is also taste. Next are the profit models for franchisees and the franchisor. CEO Lee said, "When creating the profit model for store owners, the initial promise was to keep the industry’s lowest cost below 35%," adding, "We were able to lower costs by manufacturing directly."

Sandol Food’s sales have increased by more than 60% compared to three years ago, passing through the COVID-19 period. CEO Lee, who confirmed the potential of the home meal replacement market in the U.S., Japan, and other countries, actively expanded equipment capacity in preparation, which paid off. Tteokbokki is a dish often eaten by one or two people rather than large groups, and with increased delivery demand, the franchise sector also grew. Sandol Food is now expanding its market overseas to the U.S., Japan, Indonesia, Mongolia, Laos, and more.

As the company has grown, CEO Lee also pays attention to sharing achievements with the approximately 150 employees. More than 35% of Sandol Food’s employees have worked there for over 10 years. Highly skilled employees are also a competitive advantage for the company. He said, "The best welfare is fair personnel evaluation," adding, "We conduct monthly evaluations for performance rewards, pay bonuses every three months, and distribute excess profits annually."