Pepper Lunch Achieves Milestones in Supply Chain, Menu Innovation, and Franchise Growth

Pepper Lunch: A Journey of Innovation and Growth

Over the past 18 months, we have embarked on an ambitious journey to innovate and expand, focusing on several key areas critical to our success. From renegotiating and expanding our national and international supply chain to introducing a newly upgraded and updated menu, building an all-new tech stack, and dramatically expanding our franchise network, we have laid a strong foundation for future growth. Here are the significant strides we have made in various aspects of our operations and what lies ahead for our brand.

National and International Supply Chain Overhaul

Ensuring the quality and consistency of ingredients has always been paramount at Pepper Lunch. Over the past 18 months, we have revamped our global supply chain. Our focus has been on building relationships with reliable suppliers who share our commitment to quality. This overhaul has improved inventory management, reduced costs, and ensured that every Pepper Lunch location receives consistent ingredients.

Introducing a New Menu

In our continuous quest to provide an exceptional dining experience, we introduced a significantly updated and upgraded menu that reflects our commitment to innovation and quality. The revamped menu features a variety of new dishes, including options that cater to diverse dietary preferences. From new sizzling steak combinations to premium pasta dishes, our menu is designed to appeal to a broader audience while retaining the signature flavors that our customers love. Our culinary, operations, QC, and procurement teams have worked tirelessly to ensure that each new dish meets the high standards that Pepper Lunch is known for.

Franchise Sales and Expansion

The past year and a half have been a period of significant growth for Pepper Lunch. We have successfully sold over 50 new franchises (which will all open in under 5 years), expanding our footprint across the United States in regions like Arizona, Hawaii, Nevada, Utah, Arizona, and Florida, including a 10X growth trajectory in California. This expansion is a testament to the strong interest in our unique experiential dining concept and the comprehensive support we offer franchisees.

Advancements in Our Tech Stack

To support our growing network of franchises and enhance the customer experience, we have made substantial investments in our tech stack. These advancements include implementing a state-of-the-art point-of-sale (POS) system, which streamlines operations at our restaurants and provides valuable insights into customer preferences. Additionally, we have enhanced our online ordering platform, making it easier for customers to enjoy Pepper Lunch from the comfort of their homes, offices, and anywhere outside our stores. The tech upgrades have also extended to backend systems, improving efficiency and data management across the board. By the end of 2024, we will introduce an ordering kiosk system and convert our cashiers to Hospitality Hosts who greet guests and guide them through the process of building their own hot plate creations.

Leadership Team Enhancements

A critical component of our success has been the strength and vision of our leadership team. Over the past 18 months, we have welcomed several new department leaders at the U.S HQ and other global offices, who bring a wealth of experience and professionalism to our team. Their expertise has been instrumental in driving strategic initiatives and ensuring that the brand remains at the forefront of the fast-casual dining industry. Our leadership team's focus on innovation, operational excellence, franchisee onboarding, and customer satisfaction has been key to our recent achievements.

Marketing Team Initiatives

Our marketing team has played a pivotal role in enhancing brand visibility and engagement. Through targeted campaigns, social media interactions, and community engagement, we have strengthened our connection with customers. These marketing initiatives have not only driven foot traffic to existing locations but also created buzz around new store openings. By telling the Pepper Lunch story in an engaging and relatable way, our marketing team has significantly contributed to our brand's growth and popularity.

New Prototype and Upcoming Store Openings

Innovation doesn't stop with our menu and tech stack; it extends to restaurant design as well. We have developed a new prototype for our North American locations, focusing on creating a more efficient and customer-friendly layout. This new design enhances the overall customer journey, dining experience, and employee workflow.

With several new store openings imminent, including locations in Phoenix, Tampa, and Salt Lake City, we are excited to bring our unique dining experience to more communities. Each new store is a step forward in our journey to becoming a household name in fast-casual dining.

Conclusion

The past year and a half have been a transformative period for Pepper Lunch. Our efforts in revamping the supply chain, launching a new menu, expanding our franchise network, developing the tech stack, building the leadership team, and setting up the franchise support systems have set the stage for continued success. We remain committed to providing an exceptional dining experience to our customers and creating valuable opportunities for our franchisees.

If you are an entrepreneur looking for a rewarding franchise opportunity, join us at Pepper Lunch as we continue to sizzle and grow, one plate at a time.

This information is presented in Item 19 of our 2023 Franchise Disclosure Document along with additional financial performance data related to the performance of our franchised and company-owned stores. If you purchase a franchise, your results may differ from the represented performance. We can’t guarantee the success of any franchise and you must accept the risk of not doing as well.