Fast-casual dining is growing fast, and Pepper Lunch is making a significant impact. This Japanese restaurant chain has over 500 locations in 15 countries. What makes it unique? A fun DIY teppanyaki-style experience, fresh ingredients, and an innovative franchise model. Customers love the hands-on cooking, and investors see its strong potential. With plans to grow in the U.S., Pepper Lunch isn’t just another restaurant—it’s changing the fast-casual game.
In this blog post, we will investigate why Pepper Lunch is a rising star in the competitive and evolving restaurant industry.
About Pepper Lunch
Pepper Lunch was founded in 1994 by Teppanyaki chef Kunio Ichinose. He wanted to make high-quality beef dishes affordable for everyone. Traditional teppanyaki in Japan was expensive, so he created a fast-casual version where customers cook their meals on sizzling iron plates.
Today, Pepper Lunch is one of Japan’s biggest franchise restaurant brands, with locations across Asia, Australia, and North America. In the U.S., the brand is led by Hot Palette America CEO Troy Hooper. With a fine dining and business background, Hooper saw the brand’s potential, calling it unique, marketable, and ready for significant growth in America. Under his leadership, the company has focused on strong operational efficiency, quality control, and customer experience, ensuring consistency across all locations.
We had the pleasure of hosting Troy Hooper on our podcast: Delivered: The Journey of Packaging. In the episode titled Sizzling Success: Scaling a Global Brand, we explored how Pepper Lunch is making its mark in the U.S. restaurant scene.
Troy shared his insights on scaling an international restaurant brand, franchising strategies, and adapting Pepper Lunch’s unique dining experience for American consumers. He also discussed the critical role of packaging in food service success – from sustainability and branding to the two-year development process behind Pepper Lunch’s custom packaging. With over 31 years of experience in hospitality and franchise development, Troy provided valuable takeaways on what it takes to grow a fast-casual brand in a competitive market. We also touched on key industry trends and what’s next for franchise expansion in 2025.
What Makes Pepper Lunch Stand Out?
- A One-of-a-Kind Dining Experience
Pepper Lunch gives customers control over their meals. Each dish arrives on a 500°F iron plate, allowing diners to sear their protein, mix in sauces, and enjoy a freshly cooked meal just as they like it. The sizzling sound, rich aroma, and bold flavors make it a fun and memorable experience.
This hands-on dining style is especially popular with younger customers who love interactive meals. Plus, it’s perfect for social media—videos of sizzling dishes attract attention, helping the brand grow even faster. The combination of visual appeal and customizable options makes it a top choice for food influencers and trend-savvy diners.
- Authentic Japanese Flavors with a Global Twist
Pepper Lunch stays true to its Japanese roots but adapts to local tastes. In the U.S., for example, diners can enjoy signature honey brown and ginger soy sauces and bold Korean gochujang and kimchi flavors. The menu balances authenticity and local appeal. The classic beef pepper rice remains, but U.S. locations offer more steak options to suit American preferences. This mix of tradition and innovation is key to the brand’s success. In addition to beef, other protein options, such as chicken, seafood, and plant-based alternatives, cater to a wide range of dietary preferences, ensuring that everyone can find something they enjoy.
- Affordable Yet Premium Quality
Fast-casual restaurants struggle to maintain high food quality while keeping costs down. Pepper Lunch does this well by reducing waste and running efficiently. With an average meal price of $17.50, it competes with Chipotle and Panera but offers a unique, premium experience. Unlike expensive teppanyaki restaurants that take time, Pepper Lunch delivers a high-end meal in under 20 minutes. Customers get fresh, flavorful food without long waits or high prices.
By sourcing high-quality ingredients and maintaining streamlined operations, Pepper Lunch keeps its costs competitive while ensuring an excellent dining experience. The brand also embraces sustainability by implementing eco-friendly practices, such as reducing food waste and using biodegradable packaging.
- A Winning Franchise Model
Pepper Lunch is popular with customers—and investors. The franchise model is designed for low costs, high efficiency, and easy scalability. Since customers cook their meals, labor costs stay low. The streamlined kitchen setup also decreases expenses, making expansion more manageable and profitable.
Many franchisees own multiple locations, with some running up to ten stores. The company takes a careful approach to expansion, ensuring each new location is set up for long-term success. Franchisees receive extensive training and ongoing support, helping them maintain the brand’s high standards while adapting to local market conditions.
- Built for Modern Dining Trends
The restaurant industry is changing, and brands that offer more than just food are thriving. Pepper Lunch fits this shift perfectly. Customers want experiences, not just meals, and the sizzling plate concept delivers.
The business model is also designed to handle industry challenges. With rising labor costs, its low-staff approach keeps operations sustainable. As fast-casual dining continues to grow, Pepper Lunch’s quick service and quality food make it a leader in the market. Younger diners love Pepper Lunch—half its U.S. customers are under 30. Its engaging, customizable meals fit the preferences of a generation that values unique experiences.
Pepper Lunch expanded rapidly within its first year of franchising. Today, it operates in 16 countries and keeps growing. Since arriving in the U.S. in 2018, it has opened locations in California, Nevada, Utah, and Florida, with more on the way. The company stays true to its flavors. Instead of changing recipes to fit the American market, it keeps its Japanese-style cooking methods. U.S. staff are trained to follow traditional recipes. Still, about 20% of the menu is localized to fit regional tastes. For example, Philippine locations offer cheesier dishes, while American locations focus more on steak.
CEO Troy Hooper stresses that the core experience remains the same. No matter the location, customers still get to hear, see, and smell their sizzling meal. This consistency helps the brand grow while appealing to different audiences. Real estate is another key to expansion. While many fast-casual brands focus on mall locations, Pepper Lunch is moving into standalone restaurants and high-traffic urban areas. This flexibility ensures that the brand stays visible and accessible in different markets. Additionally, the brand is leveraging digital ordering and delivery partnerships to reach an even wider audience.
Enhance Your Franchise With Custom Packaging Solutions
Strong branding and packaging are key to maintaining a great customer experience as Pepper Lunch expands. Custom packaging keeps food fresh, secure, and visually appealing for dine-in, takeout, or delivery. At SupplyCaddy, we create high-quality, customizable packaging for fast-casual brands like Pepper Lunch.
Our solutions enhance presentation and function, from eco-friendly containers to branded takeout boxes. Proper packaging strengthens brand identity and improves customer satisfaction. Well-designed packaging also ensures that takeout and delivery meals retain heat and texture, preserving the signature sizzling experience outside the restaurant. Contact us at hello@supplycaddy.com.