From the Super Mario Wiki
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A pepper is a type of spicy fruit that is the most hated food of the Yoshis. However, Black Yoshi and White Yoshi seem to like them in Yoshi's Story. If a regular Yoshi eats one, they will lose one petal from their Smile Meter.
Peppers also appear alongside other fruits in Super Mario Sunshine at Delfino Plaza. If a Yoshi eats one, it turns purple, allowing it to spit juice of the same color that turns enemies into purple forward-moving platforms. It is the only fruit that Yoshis never ask for to hatch out of their eggs. It is also used to defeat King Boo at the casino of Hotel Delfino. By throwing a pepper at his tongue, King Boo is stunned, allowing Mario to damage him with another fruit.