Pepper Lunch
Food & Beverage · Fast-Casual Restaurants
- Active units
- 5
- Avg unit volume
- $1.6M
- Royalty
- 5.0%
Franchised, year-end 2024
of weekly Net Sales
About Pepper Lunch
Pepper Lunch is a culinary sensation offering a unique and interactive dining experience. Originating in Tokyo in 1994, Pepper Lunch revolutionized the teppanyaki concept by allowing customers to create their own sizzling hot plate dishes with high-quality ingredients. With a mission to transform everyday meals into cherished memories, Pepper Lunch has expanded globally, with over 500 outlets in 15 countries. The brand's core values of quality, affordability, and exceptional customer service resonate with diverse cultures worldwide. Known for their innovative approach to fast-casual dining, Pepper Lunch invites patrons to be the masters of their own meals, creating a personalized culinary adventure. Embodying the essence of Teppanyaki, Pepper Lunch blends tradition with innovation to offer a dining escapade that delights the senses and brings people together. Experience the joy of 'Sizzle It Your Way' at Pepper Lunch today.
Key terms
- Franchise fee
$50k
- Brand fund
2.0% of Net Sales
- Multi-Unit Development Agreement
$30k
- Veteran discount
Not offered
Brand Percentile Rankings
Rankings compare brands in the same operating year. Fee and investment figures come from the FDD (2026 filing); filings on file: 2024, 2025, 2026.
Growth
- Total locations8
Franchised units open at year-end
- New openings3
Gross new units opened during the calendar year
- 1-year unit growth rate60.0%
Net unit growth versus prior year
- 3-year unit CAGR15.5%
Compound annual growth rate of unit count over the trailing 3 years
- Unit growth ratio3.0×
Cumulative opens / closures through year-end
Unit economics
- Annual unit volume (Median)$1.7M
Average Gross Sales for 12-month periods ended December 31, 2025 (franchise restaurants in the Continental U.S.)
- Annual unit volume (25th percentile)—
Per FDD Item 19 disclosure
- Annual unit volume (75th percentile)—
Per FDD Item 19 disclosure
- 1-year Median AUV growth rate21.2%
Year-over-year change in median AUV
- Store-level EBITDA Margin—
Median unit-level EBITDA / AUV
Investment profile
- Estimated initial investment$1.2M
Midpoint of estimated initial investment range
↓ Lower is better - Time to open11 months
Midpoint of average time from agreement to opening
↓ Lower is better - Royalty rate5.0%
Percent of net sales paid to the franchisor
↓ Lower is better - Sales-to-investment ratio1.4×
Median AUV / estimated initial investment midpoint
- Cash-on-cash returns—
Median unit-level EBITDA / estimated initial investment midpoint. Steady-state estimate; year 1 returns will be lower as the unit ramps to median volumes.
Franchisee healthLocked
- Unit closure ratio
- Transfer vs. closure ratio
- Percent multi-unit franchisees
- Litigation rate
- EBITDA multiple on sales & transfers
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Sources
Financial and operating figures are sourced from the brand's Franchise Disclosure Documents. Brand percentile rankings are based on comparisons to other brands that include the same metrics in their Franchise Disclosure Documents.