Founded in 2017, Dave’s Hot Chicken announced on Monday that it has been acquired by Roark Capital, a private equity firm and owner of Subway, in a deal valued at $1 billion. This milestone marks a significant chapter in the company’s rapid growth trajectory.
Specializing in a fiery, Nashville-style hot chicken, the brand anticipates opening 155 locations this year alone, with plans to expand to 400 outlets globally by 2025, according to an official statement. What began as a humble venture in a parking lot in East Hollywood, California, has now transformed into a major player in the fast-food industry.
Transforming a Local Favorite into a Global Phenomenon
Initially launched by a group of childhood friends, Dave’s Hot Chicken has experienced exponential growth, driven by its unique spicy chicken offerings. The company’s journey from a small pop-up to an international franchise exemplifies modern entrepreneurial success stories. Related: How Dave’s Hot Chicken Cultivated a Loyal Following from a Parking Lot Startup
Leadership Perspective and Future Outlook
“This acquisition represents one of the most inspiring entrepreneurial stories of our era, and it paves the way for the next phase of our development,” stated CEO Invoice Phelps. “Our team is enthusiastic about the synergy between Dave’s Hot Chicken and Roark Capital, and we are eager to continue surprising our customers while expanding our franchise network and increasing shareholder value.”
Market Performance and Industry Position
According to data from Placer.ai, the “Big Chicken” segment is experiencing robust growth, with Dave’s Hot Chicken leading the pack. The brand recorded the highest year-over-year increase in customer visits among chicken chains, with a 67.2% surge in Q4 2024 and a 60.0% rise in Q1 2025. Other notable competitors include Huey Magoo’s, Natty Chix, and Raising Cane’s.
Founders and the Drive Behind the Brand
One of the key figures behind the brand, Dave Kopushyan-whose name is part of the company’s moniker-began his journey by serving hot chicken from portable fryers and folding tables. In a 2022 interview with Entrepreneur, he shared that the company’s swift success has increased operational demands but also reinforced their commitment.
“You need to be fully engaged in every aspect of the business,” Kopushyan explained. “Believing in your product and staying motivated are essential to keep pushing forward.”
Expansion and Franchise Development
Since initiating franchising efforts in 2019, Dave’s Hot Chicken claims to have granted franchise rights for over 1,000 locations across the United States, the Middle East, and Canada. This rapid expansion underscores the brand’s widespread appeal and scalability.
Roark Capital’s Strategic Investments
Based in Atlanta, Roark Capital specializes in backing franchise-based companies. In 2023, Roark acquired Subway, further diversifying its portfolio, which also includes brands like Jimmy John’s and Jamba Juice. Their investment in Dave’s Hot Chicken signals confidence in the brand’s growth potential and the increasing popularity of spicy, crave-worthy fast food.
Dave’s Hot Chicken Sliders – Courtesy of Dave’s Hot Chicken
