Consider Risks in Business with David Bae invovled Bunme, KOGI Korean BBQ, Honey, Kinhboy, and Kobo

Why We Wrote This Article

We created this article to share our experience trying to recover a bank guarantee of over $40,000 owed to us by David Bae, a restaurateur and business operator based in Barangaroo, New South Wales, Australia.

Our goal is to inform others about our experience after buying a business from him, which resulted in significant losses. Business ventures always carry risks, but we believe it’s important to provide transparency about our situation for anyone considering doing business with him.

All information shared here is factually accurate and supported by evidence.

Facts

Business Structure

• David Bae structured two companies:
  • Bunme Operations Pty Ltd (ABN: 91 602 163 057)
  • BUNME HOLDINGS PTY LTD (ABN: 12 167 582 809)
• He used BUNME HOLDINGS PTY LTD to sign leases while running franchise operations under Bunme Operations Pty Ltd.
• His mother is the sole director of BUNME HOLDINGS PTY LTD, but she is not involved in operations.

Franchise Operations

• David Bae attempted to establish Bunme as a franchise brand, selling multiple franchise businesses under this structure.
• However, Bunme did not achieve success. Today, only a few Bunme shops remain operational, and he has shifted to trying to sell other brands.
• His broader portfolio of ventures includes:
  • Moochi Frozen Yoghurt, a franchise that expanded to 22 locations within two years of its launch in 2011.
  • K-BIRD, another street food franchise.
  • Restaurants such as KOGI Korean BBQ, Honey, Kinhboy, and Kobo.

Our Purchase

In 2016, we purchased a Bunme food court shop in Rhodes from David Bae. Before buying, we consulted a lawyer who warned us about his lack of a successful track record. Despite this, we trusted him and proceeded with the purchase.

Business Losses

The business declined within a few months, long before the COVID-19 pandemic, indicating no external factors were responsible. David Bae advised us to sell the business, but due to its losses, it was impossible to secure a good price.

COVID-19 Impact

During the pandemic, the business suffered heavy losses, like many others. David Bae suggested abandoning the business and leaving the equipment with the shopping center, but we refused and decided to continue independently.

Statements About Liability

David Bae mentioned that he planned to avoid paying the landlord by relying on the fact that BUNME HOLDINGS PTY LTD, held by his mother, lacked funds, and the landlord could not claim his personal assets.

Bank Guarantee Issue

In 2023, the lease for our shop expired. Since the lease was signed by BUNME HOLDINGS PTY LTD, the landlord returned the $40,000 bank guarantee to BUNME HOLDINGS PTY LTD.

To secure our bank guarantee, we signed an additional agreement with David Bae to ensure he would transfer the funds to us once released.

Failure to Return the Bank Guarantee

• He claimed the bank guarantee would not mature until December 2023 but provided no evidence.
• After December 2023, he stated that only his mother could handle it, but she does not speak English.
• He claimed even with an interpreter, his mother did not understand what a bank guarantee is so the bank could not proceed.
• He later said the bank could only process the request once a month, and each time we followed up, a new excuse arose:
  • His mother returned to Korea for family reasons.
  • He was broke because he was opening another shop and faced cash flow issues.

Current Status

Despite repeated follow-ups and attempts to recover our money, we have not received the $40,000 bank guarantee to date.

Conclusion

We have shared these facts to raise awareness and inform others about our experience. Bunme has not been a successful franchise, with only a few shops still operating. Meanwhile, David Bae has moved on to new ventures, including relaunching Tokki (Surry Hills), opening Soot (Barangaroo), and creating the chef’s table concept Leemix (Circular Quay).

If you are considering doing business with David Bae or his associated companies, we strongly urge you to conduct thorough due diligence. Based on our experience, his business model appears to focus on selling businesses at significantly inflated prices, often targeting individuals who may lack industry experience or knowledge. We recommend speaking with previous business owners who have dealt with him to better understand their experiences and assess the true value of the business being offered.

David Bae has a history of involvement in various businesses, including Bunme, the street food franchise we purchased, as well as other ventures like Moochi Frozen Yoghurt, K-BIRD, KOGI Korean BBQ, Honey, Kinhboy, and Kobo. His current projects include Tokki (Surry Hills), Soot (Barangaroo), and Leemix (Circular Quay).

If you have faced similar issues or have any questions, feel free to contact us at davidbaebizrisk@gmail.com. We are committed to shedding light on these experiences and ensuring others are informed before entering into any business agreements.