Becoming Kim San Leng
Unlike the elder Hoon’s more risk-averse approach,[1] the younger Hoon focused on greater expansion and branding, guided by the knowledge he gained from self-improvement opportunities.[7] As a result, under the younger Hoon, the business entered greater national prominence by the 1990s, most notably with the 1990 $3.52 million acquisition of the Bishan coffee-shop site, which saw national news coverage.[4][5]
The Bishan purchase was notable for its unprecedented price-tag which was more than double the starting bid,[2] and it required both a bank loan and the elder Hoon selling two terrace houses.[4][10] The younger Hoon decided this after much deliberation and consultation, with the site’s central location and its proximity to upcoming developments being key deciding factors. [4][8] To also maximise the success of this endeavour, Hoon reached out to established hawkers to open stalls in this new coffee-shop.[7][11][12] Hoon’s positive assessment was also validated by subsequent bids offered to him, with other interested parties willing to pay much higher prices to purchase the site from him.[4] Nonetheless, some commentators were sceptical, considering him a “lunatic”.[7][8]
This high-value acquisition was later considered a milestone in the modernisation of Singapore’s coffee-shop industry.[8] Alongside the decision to name this new coffee-shop Kim San Leng Food Centre after his father’s first coffee-shop,[4] Hoon also rebranded all his coffee-shop outlets to Kim San Leng, marking the official beginning of the brand.[7]
Furthermore, Hoon also introduced innovations into coffee-shop operations, such as the installation of automatic shutters to allow for a more efficient opening and closing process.[3][13] Television advertising for the hawkers, which was unprecedented in this traditional industry, also began under Hoon, as part of a modernising trend to keep the business relevant and competitive.[3][13]
The Bishan coffee-shop saw success in the following years, with the initial cost being recouped within the first ten years.[8] This success was also instrumental in boosting the Kim San Leng brand, driving further coffee-shop acquisitions across the island, including sites in Yishun and Bukit Panjang.[7] With the increased publicity from this success, Hoon was also given the moniker of “Coffee-Shop King".[10]
Hoon’s style of management focused on building positive relationships, and this could be also seen from the selection of hawker tenants, as Hoon implemented a stringent character assessment to ensure credibility.[10] This arguably played a part in further ensuring sustainability in the coffee-shop operations, minimising inter-stall conflicts.[10]
