Pepper Lunch franchise
A fast-casual restaurant serving Japanese-style sizzling plate meals. At the end of 2025 there were 8 Pepper Lunch locations in the US, all franchised.
- Cost to open
- $691K–$1.68M
- Franchise fee
- $50,000
- Royalty
- 5% of gross sales
- Locations, 2025
- 8+2 in 3 yrs
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Company snapshot
- SBA loans
- On the SBA Franchise Directory
From Hot Palette America Incorporated’s 2026 filing; SBA status from the SBA Franchise Directory, October 28, 2026.
How much a Pepper Lunch franchise costs
Opening Single restaurant costs an estimated $690,800 to $1,678,300. That covers the franchise fee and everything else needed to open, through the first months of working capital.
Source: Hot Palette America Incorporated, 2026 filing, page 17
Pepper Lunch franchise fee
The franchise fee is $50,000. You pay it when you sign the franchise agreement.
Source: Hot Palette America Incorporated, 2026 filing, page 9
Royalty and ongoing fees
| Royalty | 5% of gross sales. |
|---|
The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.
Source: Hot Palette America Incorporated, 2026 filing, page 10
Sales and earnings
Shares figures Pepper Lunch publishes sales or earnings figures for its locations. The full tables, with notes on which locations are counted, are in its filing.
Source: Hot Palette America Incorporated, 2026 filing, page 52
Locations opened and closed
| Year | Franchised | Company-owned | Closed |
|---|---|---|---|
| 2023 | 6 (0) | 0 | 0 |
| 2024 | 5 (−1) | 0 | 1 |
| 2025 | 8 (+3) | 0 | 0 |
Closed or left counts terminations, non-renewals, locations bought back by the franchisor and locations that stopped operating.
See which brands grew most in the fastest-growing franchises rankings.
Source: Hot Palette America Incorporated, 2026 filing, page 53
How Pepper Lunch compares
Of the 171 restaurant franchises on this site, Pepper Lunch is the 109th cheapest to open and the 150th largest by number of locations.
| Measure | Pepper Lunch | Typical restaurant |
|---|---|---|
| Cost to open, low end | $691K | $526K |
| Royalty | 5% | 5% |
| Closed or left per year | 5.6% | 4.1% |
| Change in franchised locations, 3 yrs | +33.3% | +5.7% |
| Shares earnings figures | Yes | 125 of 171 |
Typical is the median across the 171 brands in restaurant franchises.
