Pepper Lunch
Pepper Lunch franchises operate fast-casual Japanese specialty restaurants offering do-it-yourself meals of beef, chicken, and seafood cooked on iron griddles, accompanied by signature pepper rice, pasta, proprietary sauces, side dishes, and non-alcoholic beverages for on-premises and off-premises consumption. The franchisor, Hot Palette America Incorporated, sells single-unit franchises or multi-unit development agreements requiring a minimum of 5 restaurants in defined areas. It targets customers in the competitive fast-casual dining market, particularly those interested in interactive Japanese cuisine experiences.
Franchise Costs
5% royalty + 2% Brand Building Fund + $300/mo technology fee (up to $500/mo)
Financial Performance
Item 19 Financial Performance
Data Based On: 5 franchised Pepper Lunch Restaurants for the period January 1, 2024 to December 31, 2024.
* Calculated average gross revenue from 5 individual franchised units: ($2,967,474.62 + $1,289,286.04 + $1,561,864.68 + $1,177,400.32 + $1,089,402.32) / 5 = $1,617,085.60. Calculated median gross revenue from the same 5 units = $1,289,286.04. No expense or profit data provided.
Extracted Item 19 Section
How Pepper Lunch Compares
Key Insights
- Higher investment than 75% of Fast Food franchises
| Franchise | Investment | Fee | Royalty | Locations |
|---|---|---|---|---|
Pepper Lunch Current | $657K – $1.7M | $50K | 5.0% | 5 |
| MCDONALD'S | $1.5M – $2.6M | $45K | N/A | 12,772 |
| AFC | $45K – $151K | $6K | 9.5% | 3,572 |
| SONIC DRIVE-IN | $1.7M – $3.1M | $15K | 5.0% | 3,441 |
| JIMMY JOHN'S | $366K – $728K | $35K | 6.0% | 2,647 |
| ARBY'S | $645K – $2.5M | $38K | 4.0% | 2,316 |
Fast Food Average 126 franchises | $594K – $1.5M | $35K | 6.1% | – |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 126 Fast Food franchises by location count.
Locations & Growth
Outlet Growth Over Time
Total outlets at end of each year
Geographic Distribution (2024)
Outlets by state across the United States
Franchisee Contacts
8 franchisee contacts on file from official FDD filings.
| Name | SBA Loan |
|---|---|
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
8 Contacts Available
Unlock all Pepper Lunch franchisee contacts with verified contact information
Due Diligence
Litigation (Item 3)
Bankruptcy (Item 4)
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
Frequently Asked Questions
The total initial investment to open a Pepper Lunch franchise ranges from $657,000 to $1,688,500. This includes a franchise fee of $50,000. Ongoing royalty fees are 5.0% of gross sales.
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