Pepper Lunch Territories Are Moving Fast
570+ locations, 17 countries, 90% franchisee renewal. Here's what that means for serious restaurant operators.
Pepper Lunch isn't a new concept trying to prove itself. It's a 32-year-old global brand with 570+ operating locations, an AUV in the top quartile of fast-casual, and a renewal rate that tells you more about unit economics than any pitch deck can.
But here's the operator math that matters: territories are closing faster than they're opening. The Texas 20-unit deal announced last month took most of the Dallas-Fort Worth metro off the board. California and Arizona are heavily carved. Florida just had its first two DMAs locked. If you're looking at Pepper Lunch as a platform play, the window to get into a priority market is shorter than most franchise candidates realize.
What's actually available
As of this quarter, we're actively placing development agreements in the following regions. Multi-unit operators with proven franchise history move to the front of the line; single-unit candidates are welcome but typically see longer timelines.
- Texas — Houston, Austin, San Antonio (DFW closed in March 2026).
- Florida — Miami-Dade, Orlando, Tampa-St. Petersburg.
- Nevada — Reno, Henderson, North Las Vegas trade areas.
- Utah — Salt Lake City, Provo-Orem, Park City tourism corridor.
- Colorado — Denver metro, Boulder, Colorado Springs.
- Hawaii — Neighbor islands (Oahu already has locations).
Brands with this kind of AUV consistency across 570+ units at 32 years old are genuinely rare. That's why we committed to 20 units in one signature.
What the investment looks like
A Pepper Lunch restaurant runs $650K–$1.1M all-in depending on format (inline, end-cap, mall-court) and local construction costs. The franchise fee is $40K per unit with a 6% royalty and 2% national marketing fund contribution. Development agreements for 3+ units carry reduced fees. Our target ROI payback is 3–4 years at a 65% prime cost operator.
The timeline from interest to open
Qualified candidates typically move from first conversation to signed agreement in 60–90 days. From signed agreement to store opening is another 9–14 months depending on how quickly you can site-select and clear permitting. We've opened in as fast as 7 months (a conversion) and as slow as 18 (ground-up new construction in a permit-heavy municipality).
