Troy Hooper is stepping down as CEO of Pepper Lunch in the U.S., moving to a strategic advisor role as the parent company’s regional group chief takes over the brand’s North American operations.
Hooper, hired in 2023 to grow the fast-casual Japanese teppanyaki chain in the U.S. and Canada, will shift to the advisory position effective Sept. 25, Hot Palette America announced Wednesday. Yugo Tago, Group CEO of Hot Palette Holdings Group, will lead Pepper Lunch’s U.S. business going forward. Mark Bailey will remain in his role as chief operating officer.
Hooper Steps Aside
Hooper is credited with playing a pivotal role in the brand’s domestic business, deepening relationships with franchisees and suppliers, and establishing a foundation for growth. His tenure lasted roughly two years, a period in which the company worked to build out its presence in a competitive fast-casual market.
The company’s statement made clear that Hooper’s exit from day-to-day management is not a departure from the brand entirely. His advisory role keeps him connected to strategy, though Tago will now hold the operational reins.
“Pepper Lunch would not be where it is in the United States today without Troy’s leadership, commitment and belief in the brand,” Tago said in a statement.
Tago Takes the Helm
Tago steps into the U.S. leadership role with a broader view of the company’s ambitions. Hot Palette Holdings Group operates across multiple regions, and Tago’s position as Group CEO gives him direct oversight of the U.S. business as it looks to scale.
“The United States has become one of the most important strategic markets in the Pepper Lunch system,” Tago said. “Not only is it a highly attractive growth market in its own right, but it will also play a critical role in our long-term strategy across North America and Latin America.”
The State of the U.S. Business
There are currently 11 Pepper Lunch units open in the U.S. and Guam. That is a modest base for a chain with global ambitions.
The brand’s teppanyaki format is well established in Japan and other markets, but it remains a niche concept in the U.S. fast-casual sector. The company’s strategy appears to hinge on building out franchise relationships and establishing a reliable supply chain, with beef sourcing as a stated priority.
Hooper’s work on franchisee and supplier relationships is part of that foundation. The question now is whether Tago can accelerate the pace of new unit openings.
A Tough Year for Chain Restaurants
The leadership change lands against a difficult backdrop for the broader restaurant industry. The Technomic Top 500, a ranking of the largest U.S. chain restaurants, reported in a separate industry spotlight that sales slowed again in 2025 as consumers cut back on dining out.
Not all segments suffered equally. The Technomic data showed that coffee, beverages and snacks, along with chicken, were bright spots in an otherwise sluggish year.
For a brand like Pepper Lunch, which operates in the fast-casual Japanese segment, the environment means growth will require more than just opening new locations. Spending habits have shifted.
The Growth Plan by the Numbers
The group’s expansion targets are ambitious. Here is a breakdown of where Pepper Lunch stands and where it aims to go:
- Current global footprint: more than 580 units across 16 countries and territories.
- U.S. presence today: 11 units open in the U.S. and Guam.
- Growth target: the group hopes to nearly double in size by 2030.
- Leadership structure: Tago as Group CEO and U.S. head, Hooper as strategic advisor, Bailey as COO.
The gap between 11 U.S. locations and the company’s global ambitions is wide. Closing it will require a steady stream of new franchise agreements and site openings, work that now falls to Tago.
What Hooper Leaves Behind
Hooper joined in 2023, when the brand’s U.S. presence was still taking shape. The company credits him with building the relationships that make future growth possible.
His shift to advisor keeps that institutional knowledge in place. It also allows the company to transition leadership without a full break from the person who helped establish its current U.S. footing.
The company did not say whether Hooper will have input on specific expansion decisions, only that his role is strategic.
What Comes Next for Pepper Lunch
Tago’s direct oversight of the U.S. business means decisions about U.S. expansion will be made at the highest level of the organization.
The company’s stated interest in using the U.S. as a sourcing hub for beef adds another layer. Pepper Lunch’s menu depends heavily on beef, and securing reliable, cost-effective supply is a strategic concern that goes beyond restaurant operations.
The company’s broader plan treats North and Latin America as one growth corridor. The U.S. is the anchor, but the strategy extends well beyond its borders.
That regional approach means success in the U.S. is not just about domestic sales. It also establishes the supply chains, franchise models and brand recognition that could support expansion into other markets in the Americas.
The beef sourcing angle is particularly notable. The company wants the U.S. to serve as a hub for a key ingredient, which ties the restaurant business to a larger procurement strategy.
A Clear Direction
Hooper’s move to advisor is a transition, not a retreat. The company has framed his departure from day-to-day management as a natural evolution, with Tago stepping in to drive the next phase.
The U.S. business has its foundation in place, and the company is positioning for a growth push that it expects to carry through the rest of the decade.
Whether the market cooperates is another matter. The Technomic data suggests diners are eating out less, and the competitive pressure on fast-casual chains is not easing. Pepper Lunch’s growth plan will be tested against those conditions.
For now, the company is moving forward with a new leader at the top of its U.S. operations and a clear set of targets. Tago has the title, the mandate and the stated belief that the U.S. is central to the brand’s future. The next few years will show whether that belief translates into new locations.
Source: nrn.com
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