20 Pepper Lunch Restaurants Coming to Texas
The largest single-signature franchise deal in Pepper Lunch North America history. Here's what it covers and what it means.
On March 18th, Sizzling Hospitality — a Dallas-based multi-concept franchise operator — signed a 20-unit development agreement with Hot Palette Inc. It's the largest single-signature franchise deal in Pepper Lunch North America's history.
The agreement covers the Dallas-Fort Worth metroplex, Houston, Austin, and San Antonio. First opening is targeted for Q4 2026 in Frisco; final unit lands in 2028. Once complete, Texas will be Pepper Lunch's second-largest US market after California.
Why Texas fits
Texas has three things we track when we evaluate a market: love for beef, appetite for interactive dining, and enough daytime density in the retail corridors to support a quick-service teppanyaki format. All three are here. We've had Texas on the target list since 2023 and have been quietly working the candidate pipeline for over a year.
We looked at twelve quick-service concepts before committing. Pepper Lunch was the only one where the 10-year franchisee renewal rate and the AUV curve both kept trending up.
What this means for other Texas operators
It doesn't close Texas. Sizzling has the DFW metro on exclusive development; Houston, Austin, and San Antonio are carved but Tier-2 cities and secondary trade areas are still open. If you're a Texas-based operator and want a serious conversation, there's a path — but it's going to require speed.
