Pepper Lunch is a fast-casual restaurant serving sizzling hot plate meals with a variety of protein and vegetable options, providing a unique and interactive dining experience.
KEY FRANCHISE STATS
Franchisees
?
6
+
0%
0%
Franchise fee
?
$50,000
Investment
?
$714,000 - $1,501,000
Revenue (AUV)
?
Undisclosed
$1,157,000
+
n.a.
n.a.
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Pepper Lunch is a fast-casual Japanese restaurant franchise known for its unique DIY teppanyaki experience. Founded in 1994 by chef Kunio Ichinose in Kanagawa, Japan, the brand introduced an innovative dining style where customers cook their meals on a patented iron plate heated to 500°F.
This interactive approach offers diners a personalized and engaging culinary experience.
The franchise began expanding internationally in 2003. It adapted its model for food courts and suburban markets by developing lighter iron plates and upgrading kitchen equipment. In North America, it is headquartered in Westlake Village, California.
Pepper Lunch’s menu includes sizzling steaks, pepper rice, curry rice, and teriyaki dishes, all served on hot iron plates. Its key differentiator is the hands-on cooking experience, allowing guests to cook meals to their own liking.
Initial investment
The initial investment required for a Pepper Lunch franchise is $714,000 - $1,501,000. That is the total cost you would need to finance if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.
Type of Expenditure
Amount
Initial Franchise Fee
$50,000
Architects & Engineers
$12,500 – $30,000
Site Review Fee
$0 – $500
Studies & Site work
$1,200 – $3,500
Business Licenses & Permits
$3,000 – $5,000
Professional Fees Legal/Accounting
$3,000 – $10,000
Beer/Wine License
$0 – $12,500
First Month’s Rent and Security Deposit
$10,000 – $35,000
Utilities and Related Deposits
$5,000 – $10,000
Insurance - Annual Premium
$3,000 – $5,000
Tenant Improvements/Construction
$273,000 – $730,000
Design & Décor
$15,000 – $30,000
Equipment
$101,000 – $176,000
Furniture and Fixtures
$95,000 – $150,000
Smallwares
$13,000 – $18,000
Office Supplies
$1,000 – $3,000
Uniforms
$1,500 – $3,500
Signage
$7,500 – $25,000
Computers & POS
$20,500 – $25,000
Initial Inventory & Supplies
$15,000 – $25,000
Initial Training Expenses
$25,000 – $35,000
Pre-Opening Labor
$13,000 – $30,000
Pre-Opening Advertising
$1,500 – $3,500
Grand Opening Campaign
$7,500 – $15,000
Grand Opening Kit
$6,000 – $12,000
New Restaurant Opening Fee
$5,000
Miscellaneous Opening Costs
$1,000 – $3,000
Additional Funds - Working Capital (3 months)
$25,000 – $50,000
Grand Total
$714,200 – $1,500,500
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Type of Expenditure
Amount
Initial Franchise Fee
$50,000
Architects & Engineers
$12,500 – $30,000
Site Review Fee
$0 – $500
Studies & Site work
$1,200 – $3,500
Business Licenses & Permits
$3,000 – $5,000
Professional Fees Legal/Accounting
$3,000 – $10,000
Beer/Wine License
$0 – $12,500
First Month’s Rent and Security Deposit
$10,000 – $35,000
Utilities and Related Deposits
$5,000 – $10,000
Insurance - Annual Premium
$3,000 – $5,000
Tenant Improvements/Construction
$273,000 – $730,000
Design & Décor
$15,000 – $30,000
Equipment
$101,000 – $176,000
Furniture and Fixtures
$95,000 – $150,000
Smallwares
$13,000 – $18,000
Office Supplies
$1,000 – $3,000
Uniforms
$1,500 – $3,500
Signage
$7,500 – $25,000
Computers & POS
$20,500 – $25,000
Initial Inventory & Supplies
$15,000 – $25,000
Initial Training Expenses
$25,000 – $35,000
Pre-Opening Labor
$13,000 – $30,000
Pre-Opening Advertising
$1,500 – $3,500
Grand Opening Campaign
$7,500 – $15,000
Grand Opening Kit
$6,000 – $12,000
New Restaurant Opening Fee
$5,000
Miscellaneous Opening Costs
$1,000 – $3,000
Additional Funds - Working Capital (3 months)
$25,000 – $50,000
Grand Total
$714,200 – $1,500,500
Franchise Disclosure Document
Below is Pepper Lunch's 2024 Franchise Disclosure Document. Upgrade to Pro or purchase the FDD to view and download the document.
Number of units
Pepper Lunch had 6 total units in 2024, of which 6 were franchised-owned and 0 company-owned.
Pepper Lunch provides a comprehensive multi-phase training program to ensure franchisees and their teams are prepared to operate in accordance with brand standards. The training is delivered both in-person and virtually and involves several key components:
Pre-Opening Initial Training Program Franchisees and up to four designated managerial personnel must attend a six-week training program in Los Angeles or another designated location. This program includes instruction in food preparation, customer service, marketing, equipment maintenance, and operational standards. Completion of this training is mandatory before the restaurant can open.
New Restaurant Opening Assistance For the first Pepper Lunch restaurant, the franchisor provides an on-site team of up to two people to assist with setup and operations during the initial opening phase. Additional assistance beyond seven days or for subsequent locations incurs a daily fee plus travel expenses.
Post-Opening Initial Training Programs Franchisees may request additional training for new or replacement managers. This training comes with a set fee per trainee and covers core operational and management areas similar to the initial program.
Territory Protection
Pepper Lunch grants its franchisees a designated “Protected Area,” which is generally defined by a specific radius around the restaurant or as outlined in a mapped area within the Franchise Agreement.
This protected zone is assigned based on factors like local demographics, traffic patterns, nearby competitors, and visibility. As long as the franchisee complies with the agreement terms, the franchisor will not open or license another Pepper Lunch restaurant within that Protected Area.
However, this protection is limited and does not equate to exclusive territorial rights. Pepper Lunch franchisees may still face competition from other franchisees or company-owned units operating outside the Protected Area.
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