Dave’s Hot Chicken – a company that went from a parking lot in 2017 to a global sensation and expects to end the year with over 400 restaurants across the globe – announced it has chosen an investment from Roark in a deal reportedly valued at $1 billion. Dave’s Hot Chicken has seen years of unit and sales growth and leading guest satisfaction metrics. And the company remains committed to delivering an exceptional experience for its guests, team members and its franchise partners around the globe.
The leadership team, who have architected the elements that have made Dave’s Hot Chicken an internationally beloved brand will continue in their roles running the company. And this includes the founders of Dave’s Hot Chicken, who started this American dream story in a parking lot, will continue to drive the company’s menu innovation, food quality, in-store experience, operations, marketing, branding, digital and more.
Dave’s Hot Chicken was launched by three childhood friends: Chef Dave Kopushyan, Arman Oganesyan and Tommy Rubenyan. Together, they scraped $900 in 2017 to launch Dave’s Hot Chicken in a parking lot, portable fryers and folding tables in tow. And Dave’s Hot Chicken quickly took off, opening an East Hollywood brick-and-mortar restaurant shortly after, with support from Tommy’s brother Gary. In 2019, the team had struck a deal with Wetzel’s Pretzels co-founder and former CEO Bill Phelps to start franchising the Dave’s Hot Chicken concept. The company has sold the rights to over 1,000 franchise locations in the U.S., Middle East and Canada and will open 155-plus locations this year.
Roark is an Atlanta-based private equity firm with $40 billion in equity under management. And Roark focuses on investments in consumer and business service companies, with a specialization in franchise and multi-location businesses. The firm’s investments include Arby’s, Baskin Robbins, Auntie Anne’s, Buffalo Wild Wings, Culver’s, Jimmy John’s, and Subway.
Social media popularity: Dave’s Hot Chicken is closing in on six million followers across its platforms, and hundreds of millions of views of user generated content.
Advisor: North Point Mergers & Acquisitions served as Dave’s exclusive financial advisor.
KEY QUOTE:
“This is one of the great entrepreneurial journeys of our time, and now we begin the next chapter in the story. Our entire organization is excited about the fit between Dave’s Hot Chicken and Roark, and we’re looking forward to continuing to blow our guests’ minds and unlocking growth and value for our franchise partners.”
Bill Phelps, Dave’s Hot Chicken’s CEO
