Latest news with #DaveKopushyan
Entrepreneur
6 days ago
- Business
- Entrepreneur
Dave's Hot Chicken Acquired for $1B By Roark Capital
Dave's Hot Chicken, which began in 2017, announced on Monday that it was acquired by private equity firm (and Subway owner) Roark Capital in a $1 billion deal. The chicken shop, which specializes in a hot, Nashville-style of the bird, expects to open 155 locations this year and end 2025 with 400 restaurants worldwide, according to a press release. Not bad for a company that began with a group of childhood friends in an East Hollywood, California, parking lot. Related: 'It Was Like a Drug': How Dave's Hot Chicken Grew a Cult Following From a Parking Lot "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, in a press release. "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." According to data from "Big Chicken" is on the up, and Dave's Hot Chicken was the leader of the flock, with the "most significant" year-over-year visit growth (67.2% in Q4 2024 and 60.0% in Q1 2025) of all the chicken chains, including Huey Magoo's, Super Chix, and Raising Cane's. Dave Kopushyan, the "Dave" in the name, is one of the founders and the chef who began slinging the now-famous hot chicken using portable fryers and folding tables. He told Entrepreneur in 2022 that the company's fast success is making them work even harder. "You just have to be present for all of it," Kopushyan said. "And you have to believe in your product and use that motivation to keep going." Related: Private Equity Giant Blackstone Acquires Jersey Mike's Subs for $8 Billion In 2019, Dave's began franchising, and the company says it has sold the rights to more than 1,000 locations in the U.S., the Middle East, and Canada. Roark is based in Atlanta and specializes in franchised businesses, per the AP. It purchased Subway sandwiches in 2023 and backs a slew of restaurant chains, from Jimmy John's to Jamba Juice. Dave's Hot Chicken Sliders - Courtesy of Dave's Hot Chicken
Yahoo
26-02-2025
- Business
- Yahoo
A Billion Dollar Deal In the Works for Dave's Hot Chicken
Eight years after pooling their combined savings of $900 to sell fried chicken out of a yellow pop-up tent in East Hollywood, the four young founders of Dave's Hot Chicken are about to ink a deal to sell their Pasadena-based chain of restaurants for $1 billion according to The Wall Street Journal. Arman Oganesyan, Tommy Rubenyan, and Gary Rubenyan had no restaurant experience when they teamed with chef Dave Kopushyan to create their crave-worthy chicken, slaw, and curly fries. 'We took the idea of In-N-Out,' Oganesyan said in an interview. 'The concept of it and the way it works, and we took the flavor of hot chicken, and we combined it together, and that's how the idea was kind of born'Today, the franchised chain boasts 275 restaurants, from the original brick-and-mortar on Western Avenue to stores in three dozen states, Canada and the Middle East. The chain's investors include Samuel L. Jackson, former California first lady Maria Shriver, Boston Red Sox Chairman Tom Werner, and rapper Drake, and it consistently placed among the best hot chicken restaurants (we ranked it #2 in L.A.) and among the most successful franchises. Last year, food research firm Technomic named Dave's the fastest-growing restaurant chain in course, private equity came calling. Atlanta-based Roark Capital, named for the hard-charging character in Ayn Rand's book The Fountainhead, is a behemoth in food service and the world's largest investor in franchise companies. The $38-billion fund has already snatched up Carl's Jr., Subway, Arby's, Buffalo Wild Wings, and Jimmy John's, adding them to a portfolio filled with an endless string of strip mall dining favorites: Dunkin, Cinnabon, Jamba, and Baskin Robbins are all part of Roark. Private equity firms manage $6 trillion in assets in every industry, from housing to hospitals to fast food. Throughout all of their success, co-founder and namesake Dave Kopushyan has always done it for the food. 'As a chef,' he said in an interview. 'I'm proud of the food that I make, and I want people to have it. When I see people eat and they look at each other and they smile like 'yeah, this is good.' That's why I do my job.' Be the First to Know! Keep up with the latest from Los Angeles Magazine. Sign up for The Daily Brief below or by clicking here.
Yahoo
14-02-2025
- Business
- Yahoo
Dave's Hot Chicken explores potential sale
US-based fast-casual restaurant chain Dave's Hot Chicken is exploring a potential sale and has hired the investment bank North Point to manage the process. The deal could value the company at $1bn, including debt, as reported by Reuters. The sale process is attracting interest from private equity companies. The discussions are occurring as restaurant operators such as Dave's are faced with rising labour costs. Known for its Nashville-style hot chicken, Dave's has seen a surge in consumer demand for chicken and now has more than 250 locations worldwide. The company generates $1bn in annual sales. Dave's and North Point have not responded to requests for comment. The chain, which is majority-owned by founders Dave Kopushyan, Arman Oganesyan and Tommy and Gary Rubenyan, welcomed rapper Drake as an investor in 2021. It has also received support from high-profile individuals such as actor Samuel L Jackson. Kopushyan and his co-founders started the business in 2017 in an East Hollywood parking lot with just $900. By 2019, they had appointed Bill Phelps, co-founder of Wetzel's Pretzels, as their CEO. Dave's operates on a franchised business model and has sold rights to more than 1,000 franchise locations across the US, the Middle East and Canada. Restaurant franchises are often appealing to private equity firms due to their ability to generate consistent royalty fees and relatively lower operational costs. The US restaurant sector has been active in dealmaking, with Blackstone acquiring Tropical Smoothie Cafe in 2024 and chains such as Freddy's Frozen Custard & Steakburgers and Crumbl currently engaged in discussions on potential sales. In February 2025, Dave's Hot Chicken partnered with Reality Based Group (RBG), a tech-enabled customer experience improvement company, to enhance its customer experience. "Dave's Hot Chicken explores potential sale " was originally created and published by Verdict Food Service, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Reuters
11-02-2025
- Business
- Reuters
Exclusive: Restaurant chain Dave's Hot Chicken explores sale, sources say
NEW YORK, Feb 11 (Reuters) - Dave's Hot Chicken, which counts rapper Drake among its investors, is exploring a potential sale that could value the popular restaurant chain at about $1 billion, including debt, people familiar with the matter said on Tuesday. The Pasadena, California-based fried-chicken chain is working with investment bank North Point on a sale process, which is attracting interest from private equity firms, the sources said, requesting anonymity as the discussions are confidential. The deliberations come at a time when restaurant operators like Dave's are facing increased labor costs and are attempting to pass on some of the recent bout of inflation to consumers by increasing menu prices. Dave's, which is known for its Nashville-style hot chicken, has capitalized on the growing consumer demand for chicken in recent years. It currently operates over 250 locations globally and generates roughly $1 billion in annual sales, the sources said. Dave's and North Point did not respond to requests for comment. Dave's, which is majority owned by its founders Dave Kopushyan, Arman Oganesyan, Tommy Rubenyan, and Gary Rubenyan, brought Drake on as an investor in 2021 and has received backing from other big names such as actor Samuel L. Jackson. In 2017, Kopushyan and the other founders scraped together $900 and launched the company in an East Hollywood parking lot. In 2019, Dave's brought in Bill Phelps, who co-founded restaurant chain Wetzel's Pretzels, as its chief executive officer. Dave's has a franchised business model, having sold the rights to more than 1,000 franchise locations in the U.S., the Middle East and Canada, according to the company. Restaurant franchise operators have traditionally been attractive targets for private equity firms, as they typically generate steady royalty fees and are less expensive to operate. The U.S. restaurant business has been a bright spot for dealmaking recently. Blackstone acquired Tropical Smoothie Cafe last year, while restaurant chains Freddy's Frozen Custard & Steakburgers and Crumbl are currently in talks to sell themselves, Reuters has reported.
