Pepper Lunch got its start in Japan, with chef Kunio Ichinose and business partner Norio Yajima opening the first Pepper Lunch in Ofuna, Kanagawa, in southeastern Japan, in 1994.
Teppanyaki franchise Pepper Lunch is building its United States team with the hiring of Chief Operating Officer Mark Bailey, who has the goal of turning the brand into a national sensation.
Thinking back to the start of his career, Bailey saw several big-name restaurants begin their expansion across the country and wanted in.
“Being in the restaurant business from an early age, it kinda gets you,” said Bailey. “All of a sudden the hospitality business is extremely attractive because as a host or bartender you can make a decent living.”
Not to be confused with hibachi, teppanyaki is a meal cooked by customers over a flat top. Originating in Japan in 1994, Pepper Lunch arrived in the U.S. in 2018. The sizzling cast iron dishes are its signature and keep the food warm throughout the meal.
Mark Bailey is the new COO of Pepper Lunch.
Gaining experience at Pokeworks, Mr. Gatti’s Pizza, Subway and other brands, Bailey found the most enjoyment in emerging concepts and created his consultation business, Mark Bailey & Associates Consulting.
“We basically built the infrastructure for emerging franchise chains,” said Bailey. “What ended up happening in some cases, we ended up taking over part of the operations as part of our consulting gig.”
Pepper Lunch was one of those clients as it prepared for U.S. expansion. The brand had less than 10 locations in the country open when it started with Bailey’s company early last year, though Pepper Lunch’s international presence surpasses 500.
What drew Bailey in was the strong culture Pepper Lunch’s corporate team built. When Bailey first met with executives, it was clear to him Pepper Lunch focused on franchisee success, he said. A few U.S. locations have been operating for several years, proving that Pepper Lunch could succeed in the country, he said.
So far, Pepper Lunch has opened along the southwestern coast with six locations. Bailey plans to bring the brand nationally as soon as possible and that requires a strong corporate structure and a clear path to franchisee success, he said.
“We support them every step of the way,” said Bailey. “Our onboarding program is very detailed and on point to guide the franchisee from the very beginning.”
Customers at Pepper Lunch receive their meals in cast iron skillets, sizzling and steaming.
The initial investment for a Pepper Lunch location is $690,200 to $1,471,500. The brand had $265 million in global sales in 2022.
As an emerging brand, location is a key driver. The first step in onboarding is finding the ideal market for a Pepper Lunch restaurant. Eastern cuisine is popular in the U.S., which helps, Bailey said, but finding the right spot to ensure success requires market analytics.
This process is seeing results already. The company has multi-unit deals signed in Hawaii, Arizona and Florida, with interest also coming from New York and Washington.
“We’re extremely excited about this brand because it’s a very unique offering that is experiential,” said Bailey. “The model works. We truly understand that our franchisees’ success is ours.”
Related: Japanese QSR Brand Pepper Lunch Heads to Arizona Via Multi-unit Deal