From a Parking Lot to a Billion-Dollar Deal: Dave’s Hot Chicken Joins Roark Capital’s Food Empire
**From a Parking Lot to a Billion-Dollar Deal: Dave’s Hot Chicken Joins Roark Capital’s Food Empire**
What began as a modest food stand in an East Hollywood parking lot has transformed into one of the fastest-growing chicken chains in the world. Dave’s Hot Chicken, founded in 2017 with just \$900, is now valued at approximately \$1 billion following its acquisition by Roark Capital—the private equity powerhouse behind Subway, Dunkin’, and Arby’s.
Roark Capital announced the deal on Monday, further expanding its food empire, which includes Inspire Brands and Focus Brands. With over \$40 billion in assets under management, Roark is deepening its footprint in the fast-casual dining sector.
Dave’s Hot Chicken currently operates 310 restaurants globally and has already sold rights for more than 1,000 franchise locations across the United States, Canada, and the Middle East. The brand plans to open over 155 new locations in 2025 alone.
The brand’s meteoric rise began when Bill Phelps, a veteran of Wetzel’s Pretzels and Blaze Pizza, joined the company in 2019. With an initial investment of \$2 million, Phelps helped steer the company into a franchising sensation. “We timed it really well,” he said in an interview with CNBC. “The product is insane… and we’ve built a team that knows how to scale restaurant concepts fast.”
All franchisees were carefully selected and are no strangers to the food industry—they already owned brands such as Dunkin’, Blaze Pizza, or Wetzel’s Pretzels.
A key factor in the brand’s success is its virality. With 1.8 million Instagram followers and 3.6 million on TikTok, Dave’s Hot Chicken has cultivated a massive digital following that fuels demand among younger, trend-driven consumers. Phelps describes the brand as a “unicorn” in a challenging economic environment, outperforming many of its industry peers.
The acquisition also highlights Roark Capital’s aggressive push into food franchising. Just last year, the firm acquired Subway for \$9.6 billion, adding to an already impressive portfolio that includes names like Baskin Robbins, Buffalo Wild Wings, Jimmy John’s, Auntie Anne’s, and Jamba Juice.
Dave’s Hot Chicken competes in the premium fast-casual category, with average meal prices exceeding \$10 in markets like New York—on par with rivals like Raising Cane’s. Its growth stands in contrast to other fast-casual concepts: Mediterranean chain CAVA reported a robust 10.8% same-store sales growth in Q1, while Sweetgreen, despite having 251 U.S. locations, saw a 3.1% decline.
For now, Dave’s Hot Chicken shows no signs of cooling down. With a proven leadership team, a viral brand presence, and the deep financial backing of Roark Capital, the chain is poised to become a global force in the world of fast food.