Latest news with #Dave's
Yahoo
3 days ago
- Business
- Yahoo
Dave's Hot Chicken sells majority stake to Roark
This story was originally published on Restaurant Dive. To receive daily news and insights, subscribe to our free daily Restaurant Dive newsletter. Roark Capital invested in Dave's Hot Chicken, taking a majority stake in the brand, the companies said Monday. The investment marks a notable turning point for the fast casual hot chicken chain, which parlayed social media virality and a savvy franchising strategy into meteoric growth over the last several years. Reuters previously reported that the deal was worth about $1 billion. The deal also further consolidates Roark's massive influence in the restaurant industry; the private equity firm already controls Subway and Inspire Brands. Dave's began growing explosively in 2021, when its store count leapt from seven restaurants at the start of the year to 37 by year's end. By 2023 the chain reached 118 units, and by late 2024 — following openings in the United Kingdom, Canada and countries in the Middle East — it reached 250 locations. That growth drew investor and media interest, and Dave's ultimately chose Roark as its major backer. Dave's expects to hit 400 stores this year, per its announcement of Roark's investment, and the financial injection will help propel the brand's next phase of expansion. 'This is one of the great entrepreneurial journeys of our time, and now we begin the next chapter in the story,' said Bill Phelps, Dave's Hot Chicken's CEO. 'Our entire organization is excited about the fit between Dave's Hot Chicken and Roark.' Dave's leadership will retain operational control of the brand. While small in absolute terms compared to legacy QSR chains, Dave's is in a particularly dynamic niche within the restaurant industry. Many fast casual and chicken brands are growing faster than the rest of the industry, meaning Dave's may benefit from structural trends within the restaurant industry even as consumers pull back from many dining occasions. Roark has snagged one of the restaurant sector's out-and-out success stories with the investment, about two years after it bought Subway. The investment giant already owns Inspire Brands, GoTo Foods, CKE and an investment stake in Culver's, according to its website. With much of the QSR and fast casual sector in Roark's pocket, the investment group will have significant influence in the evolution of the American restaurant industry. Blackstone, another private equity firm, has also built up a large restaurant presence recently, with major investments in Jersey Mike's and Tropical Smoothie Cafe. Recommended Reading Lemonade and Modern Market Eatery form new restaurant group Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
CNBC
3 days ago
- Business
- CNBC
Private equity firm Roark Capital invests in fast-growing restaurant chain Dave's Hot Chicken
Private equity firm Roark Capital has bought a majority stake in Dave's Hot Chicken, the company announced on Monday. Financial terms were not disclosed, but Dave's CEO Bill Phelps said on CNBC's "Squawk Box" that the reported $1 billion valuation for the deal is "pretty close." Since its founding in a Los Angeles parking lot in 2017, the fast-growing chicken chain has expanded to more than 300 locations by franchising its restaurants. Dave's U.S. sales soared 57% last year and surpassed $600 million, according to data from market research firm Technomic. Roark's investment follows a boom for chicken-focused restaurants, fueled by the so-called "Chicken Sandwich Wars" sparked by Popeyes in 2019. A wave of quickly expanding upstarts, like Dave's and Raising Cane's, have challenged legacy chains like Yum Brands' KFC, further boosting the category's growth. Dave's success also comes as younger consumers seek more heat in their food. The chain offers a diverse range for the chicken's "hotness" — from no spice to "Reaper," which requires the orderer to waive liability. The Reaper has sent at least one customer to the hospital; co-founder and Chief Business Officer Arman Oganesyan said the diner who signed the waiver offered a bite to her boyfriend, who couldn't handle the heat. But the restaurant's menu overall is small and focused on its oversized chicken tenders, which can also be inserted into a bun to make sliders. According to Oganesyan, its sliders are the perfect size to eat with one hand, leaving the other free to scroll on a phone. Phelps, who previously led Wetzel's Pretzels for 25 years, joined Dave's in 2019, less than two years after its founding. Co-founders Dave Kopushyan, Tommy Rubenyan and Oganesyan have stuck around and plan to continue in their roles after the deal closes. Along with Phelps, they're also holding onto their equity as minority stakeholders. "The timing was absolutely right," Phelps said. "We were at an inflection point where we could get an incredible valuation, and yet there was still significant upside for Roark, so that's the perfect place to be. "Roark has the ability to use their international supply chain to reduce the costs. And it's a better deal for the franchisees, but they also have the international ability to grow with all of their franchisees around the world, so we have an opportunity to blow this thing up very quickly," he added. Looking ahead, Dave's could reach up to 4,000 locations worldwide over the next 10 years, Phelps said. So far, Dave's has resisted conforming to industry practices, like focusing on speed of service, switching to cheaper ingredients or expanding its short menu. Sticking to many of its founders' original practices allowed the chain to keep the quality of its signature chicken high even as it opens new restaurants every day, Dave's COO and President Jim Bitticks said. Executives don't expect that to change under Roark's ownership either. "How did we get to that billion-dollar brand status? We leaned into what they created, rather than adjusting it or changing it based on conventional wisdom," Bitticks said. The deal marks Roark's first restaurant deal since the firm's blockbuster purchase of Subway for a reported $9.6 billion in 2023. Roark's portfolio also includes two holding companies, Inspire Brands and GoTo Foods, that collectively own more than a dozen restaurant brands, like Arby's, Dunkin' and Cinnabon. Roark has been keeping an eye on Dave's since the early days. "They came to our 15-store grand opening," Oganesyan said. "We'd see them at conferences all the time. They understood the potential of the brand. ... When the time came where we needed that new investor to come in, they were some of the only people on our minds. Early Dave's investors aren't the only ones making money from the deal. Masterminded by Phelps, the company plans to give dozens of its employees, from its support center team to restaurant assistant managers, significant bonuses. "He literally made 20 millionaires," Oganesyan said.
Yahoo
29-05-2025
- Business
- Yahoo
Nashville hot chicken joint adding a second location in Pierce County
A chicken franchise that is working on a new site as part of Tacoma Mall's new Village is planning more locations in the area. Dave's Hot Chicken this week announced new leases in Western Washington, including Puyallup, Federal Way and Redmond in addition to its planned Tacoma Mall site, which The News Tribune reported last August. Local entrepreneur Sana Keshap of The Keshap Group is bringing the sites to the area, according to the announcement. Keshap opened her first Dave's in Seattle's Capitol Hill in 2023 and is leading a 10-unit development in the region. The mall restaurant, 4502 Steele St., Suite 1670, and the new Redmond site, 16502 Cleveland St., are set to open this year, while its Puyallup location, 16511 Meridian E., is scheduled to open next year. A fourth location at the Commons in Federal Way has yet to have an official opening date. 'The authenticity behind Dave's immediately drew me to the brand,' Keshap said in a statement. 'We've seen an incredible response since launching in Seattle, and we can't wait to bring Dave's to even more communities in Western Washington.' The LA-based brand specializes in 'Nashville-style' hot chicken. Its menu features hot chicken tenders, sliders and bites with spice levels ranging from 'No Spice' to 'Reaper,' along with sides including kale slaw, mac & cheese and seasoned or cheese fries. The menu also offers shakes and 'Slushers,' frozen fruit drinks. 'We're proud to announce the signing of new leases in the Western Washington area as part of our continued expansion,' said Bill Phelps, CEO of Dave's Hot Chicken.
Perth Now
27-05-2025
- Entertainment
- Perth Now
Celebrity tattoo artist Certified Letter Boy partners with Dave's Hot Chicken for opening of new Soho studio
David Beckham's tattoo artist Certified Letter Boy is opening his new studio in Soho with free tattoos and a year's worth of Dave's Hot Chicken. The tattoo artist, who has also inked David's son Romeo Beckham and rapper Central Cee, is opening his Fine Line Hearts Club studio on Saturday (31.05.25) and is joining forces with the famous US chicken brand Dave's Hot Chicken to mark the occasion. The one-off event will feature free tattoos, exclusive flashes and serious spice as Fine Line Hearts Club transforms into a tattoo-meets-chicken hotspot. Fans will be able to walk in from 11am, flash the Dave's app and choose from a range of custom flashes created exclusively for the collaboration. Booking is not required and those who arrive first will be inked first. Fans of both Certified Letter Boy's iconic ink and Dave's Nashville-style heat will be treated to a menu of spice-inspired flash tattoos – ranging from 'Reaper' flames' to 'Hot Stuff' lettering – all designed by the tattoo artist himself. This is a rare opportunity to get a free inking from Certified Letter Boy, who has a waiting list of a year and usually charges a minimum of £1,000 for his services. Once inside, guests can choose a pre-designed flash or work together with Certified Letter Boy on something more personal. Either way, the ink is free. Meanwhile, the first 10 people to get 'I Heart D.H.C' tattooed will win a year of free Dave's Hot Chicken. Dave's will also be serving up hot chicken to everyone in line, turning Berwick Street into a full-blown flavour street party. There will also be a limited edition merchandise drop available on the day.
Yahoo
19-04-2025
- Business
- Yahoo
Dave's Hot Chicken announces first Piedmont Triad location
GREENSBORO, N.C. (WGHP) — Dave's Hot Chicken is coming to the Piedmont Triad. According to the company's website, the popular chicken chain will open at 1949 Battleground Avenue on Friday, April 25. The brand, launched by three childhood friends in 2017, is known for its 'jumbo' hot chicken tenders and sliders along with sides of 'house-made Kale Slaw, creamy Mac n' Cheese and crispy, seasoned French Fries.' They offer seven spice levels ranging from 'No Spice' to 'Reaper,' which requires a signed waiver. They opened their first Dave's Hot Chicken location—or rather its first parking lot pop-up—in May 2017 in East Hollywood, California. 'Dave's Hot Chicken has one of the greatest origin stories in the restaurant business, with the founders starting Dave's as a parking lot pop-up restaurant in Hollywood with a portable fryer, and picnic tables from their backyards,' said Bill Phelps, Dave's Hot Chicken's CEO. 'The company's nearly unheard-of growth rate is a result of the founders' vision for this brand, the tremendous leadership team we've assembled, and the incredible commitment of some of the most experienced franchisees in the restaurant industry.' Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
