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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.
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Franchise Costs
5% royalty + 2% ad fund + $300-$500/mo technology fee + $200/mo induction cooker rental
Financial Performance
Item 19 Financial Performance
Data Based On: 8 franchised Pepper Lunch Restaurants (6 open for the entire period, 2 annualized) for the 12-Month Periods Ended December 31, 2025.
* The document explicitly states that 'The Table below does not include costs of sales, operating expenses or other costs or expenses that must be deducted from gross sales figures to obtain your net income or profit.' Therefore, no profit/income metrics or estimations can be derived. The 'High Gross Sales' and 'Low Gross Sales' values provided are the single highest and lowest observed sales figures, not the average of specific quartiles or segments. As the data is not segmented into quartiles from which an average can be derived, 'revenue_top_quartile' and 'revenue_bottom_quartile' are set to null according to the instructions for non-segmented data.
Extracted Item 19 Section
Avg. Revenue: $1,697,676
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Unlock financial performance dataHow Pepper Lunch Compares
Key Insights
- Higher investment than 75% of Fast Food franchises
| Franchise | Investment | Fee | Royalty | Locations |
|---|---|---|---|---|
Pepper Lunch Current | $691K – $1.7M | $50K | 5.0% | 8 |
| MCDONALD'S | $1.5M – $2.6M | $45K | N/A | 12,772 |
| LITTLE CAESARS | $377K – $1.8M | $20K | 6.0% | 3,788 |
| AFC | $45K – $151K | $6K | 9.5% | 3,572 |
| KFC (NON-TRADITIONAL) | $1.2M – $4.2M | $45K | N/A | 3,404 |
| SONIC DRIVE-IN | $1.5M – $2.5M | $15K | 5.0% | 3,120 |
Fast Food Average 133 franchises | $603K – $1.6M | $35K | 6.1% | – |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 133 Fast Food franchises by location count.
Locations & Growth
Outlet Growth Over Time
Total outlets at end of each year
Geographic Distribution (2025)
Outlets by state across the United States
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Unlock location growth dataFranchisee Contacts
12 franchisee contacts on file from official FDD filings.
12 Contacts Available
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Unlock contactsDue Diligence
Litigation (Item 3)
Bankruptcy (Item 4)
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
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Unlock due diligence reportsFrequently Asked Questions
The total initial investment to open a Pepper Lunch franchise ranges from $690,800 to $1,678,300. This includes a franchise fee of $50,000. Ongoing royalty fees are 5.0% of gross sales.
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