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 hen store, which focuses on a sizzling, Nashville-style of the chook, expects to open 155 places this 12 months and finish 2025 with 400 eating places worldwide, according to a press release.

Not unhealthy for a corporation that started with a bunch of childhood associates in an East Hollywood, California, car 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 following chapter within the story,” stated Invoice Phelps, Dave’s Scorching Rooster’s CEO, in a press launch. “Our complete group is worked up concerning the match between Dave’s Scorching Rooster and Roark, and we’re wanting ahead to persevering with to blow our company’ minds and unlocking development and worth for our franchise companions.”

Based on data from Placer.ai, “Massive Rooster” is on the up, and Dave’s Scorching Rooster was the chief of the flock, with the “most vital” year-over-year go to development (67.2% in This fall 2024 and 60.0% in Q1 2025) of all of the hen chains, together with Huey Magoo’s, Tremendous Chix, and Elevating Cane’s.

Dave Kopushyan, the “Dave” within the identify, is without doubt one of the founders and the chef who started slinging the now-famous sizzling hen 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 must be current for all of it,” Kopushyan stated. “And it’s important 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 offered 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 Rooster Sliders – Courtesy of Dave’s Scorching Rooster}