Dave’s Hot Chicken Acquired for $1B By Roark Capital

Dave’s Hot Chicken, which started in 2017, introduced on Monday that it was acquired by personal fairness agency (and Subway proprietor) Roark Capital in a $1 billion deal.

The rooster store, which focuses on a scorching, Nashville-style of the chook, expects to open 155 places this yr and finish 2025 with 400 eating places worldwide, according to a press release.

Not dangerous for an organization that started with a bunch of childhood pals in an East Hollywood, California, parking zone.

Associated: ‘It Was Like a Drug’: How Dave’s Hot Chicken Grew a Cult Following From a Parking Lot

“This is without doubt one of the nice entrepreneurial journeys of our time, and now we start the subsequent chapter within the story,” mentioned Invoice Phelps, Dave’s Scorching Hen’s CEO, in a press launch. “Our whole group is happy in regards to the match between Dave’s Scorching Hen and Roark, and we’re trying ahead to persevering with to blow our visitors’ minds and unlocking progress and worth for our franchise companions.”

In keeping with data from Placer.ai, “Huge Hen” is on the up, and Dave’s Scorching Hen was the chief of the flock, with the “most vital” year-over-year go to progress (67.2% in This autumn 2024 and 60.0% in Q1 2025) of all of the rooster chains, together with Huey Magoo’s, Tremendous Chix, and Elevating Cane’s.

Dave Kopushyan, the “Dave” within the title, is without doubt one of the founders and the chef who started slinging the now-famous scorching rooster utilizing transportable fryers and folding tables. He informed Entrepreneur in 2022 that the corporate’s quick success is making them work even more durable.

“You simply should be current for all of it,” Kopushyan mentioned. “And you need to consider in your product and use that motivation to maintain going.”

Associated: Private Equity Giant Blackstone Acquires Jersey Mike’s Subs for $8 Billion

In 2019, Dave’s started franchising, and the corporate says it has bought the rights to greater than 1,000 places within the U.S., the Center East, and Canada.

Roark relies in Atlanta and focuses on franchised companies, per the AP. It bought Subway sandwiches in 2023 and backs a slew of restaurant chains, from Jimmy John’s to Jamba Juice.

^{Dave’s Scorching Hen Sliders – Courtesy of Dave’s Scorching Hen}