Latest news with #RoarkCapital
CNBC
2 days ago
- Business
- CNBC
3 friends launched chicken finger stand in LA parking lot with $900—it just sold in deal worth ‘close' to $1 billion
Apparently, convincing your friends to sell chicken can pay off — big. At 24, Arman Oganesyan was making $50 a night as a stand-up comedian with no restaurant or business experience when he pitched the idea of selling Nashville hot chicken to his childhood friends Dave Kopushyan and Tommy Rubenyan. Pooling $900 in savings, they launched Dave's Hot Chicken in 2017 as a pop-up in a Los Angeles parking lot. On Monday, private equity firm Roark Capital bought a majority stake in Dave's Hot Chicken, which is now a franchise business with more than 300 locations, in a deal worth "pretty close" to $1 billion, Dave's CEO Bill Phelps said on CNBC's "Squawk Box." "It's insane what we did," Phelps said. "The vision of these guys was just great. Arman Oganesyan was the founder. A high school dropout, but a marketing genius, and he created all of this in his head." But the idea nearly didn't happen. Kopushyan — a chef who had worked at Michelin-starred restaurants — initially told Oganesyan, "'Chicken? First of all, I don't even like chicken,'" Oganesyan said on the "How I Built This Podcast with Guy Raz" in 2024. It took some convincing, but with Kopushyan eventually on board, they went to their other friends looking for investors, Oganesyan said — everyone turned them down, except Tommy Rubenyan. Oganesyan said the trio scraped their savings together and got to work developing a Nashville hot chicken recipe, drawing inspiration from popular Los Angeles restaurant Howlin' Ray's, which has two locations. The friends spent months eating at various fried chicken joints, watching documentaries on chicken and experimenting in Kopushyan's kitchen, Oganesyan said. Some of their "crazier" ideas, like using gummy bears in the recipe, were struck down; others came unexpectedly, Oganesyan said, like using pickle juice in the brine, which they discovered by accident after tossing leftover chicken into a nearly-empty pickle jar. "It was a lot of belief with a lot of doubt," Oganesyan said. Eventually, they were ready to start selling their fried chicken tenders, but couldn't afford to buy a food truck, so they set up in a parking lot in LA's East Hollywood neighborhood with a $150 fryer, a heat lamp for fries and tables they borrowed from their parents, Oganesyan said. They made $40 the first night they opened from four meals they sold to Oganesyan's girlfriend and three of her friends, he said. But five days into opening, they caught the attention of former Eater Los Angeles food critic Farley Elliott through word of mouth. From there business boomed, and Oganesyan said they began selling out and making "a few thousand" dollars every night in a matter of months. At the end of their second month, they paid themselves for the first time, each taking home around $10,000 in cash, Oganesyan said. "It was the most money I'd ever seen in my life," he added. A year later, they brought in Rubenyan's brother, Gary, who helped them open their first storefront. In 2019, an investor group, which included Dave's current CEO Bill Phelps, actor Samuel L. Jackson, Good Morning America anchor and former NFL player Michael Strahan, movie producer John Davis and Red Sox owner Tom Werner, bought a stake in the company with plans to franchise the brand, the company told Nation's Restaurant News in 2019. Phelps, who has served as CEO since then, has expanded the chain's presence nationally and internationally, adding locations in Canada, the United Kingdom and the Middle East, he said on "Squawk Box." In the U.S., Dave's brought in more than $600 million in systemwide sales last year, up 57% from the year before, according to data from market research firm Technomic. This year, the company expects to bring in $1.2 billion in sales and is currently "extremely" profitable both at the franchise level and in its corporate operations, Jim Bitticks, president and COO of Dave's, told CNBC Make It. While the financial terms of the deal have not been disclosed, Oganesyan, Kopushyan, the Rubenyan brothers and Phelps will retain minority stakes in the company and continue in their current roles, CNBC reported on Monday. "The timing was absolutely right," Phelps told CNBC. "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."
New York Post
2 days ago
- Business
- New York Post
Dave's Hot Chicken sold to Subway owner in $1 billion deal
Dave's Hot Chicken said Monday it has been acquired by the private equity firm Roark Capital in a deal valued at $1 billion. Dave's Hot Chicken got its start in 2017 as a popup in a Los Angeles parking lot. It has grown exponentially since then and expects to end this year with 400 restaurants worldwide. The brand specializes in Nashville-style hot chicken. 3 Dave's Hot Chicken was bought by private equity firm Roark Capital for $1 billion. AP 3 Dave's Hot Chicken was started in 2017 as a popup in a Los Angeles parking lot. AP Investors in Dave's Hot Chicken have included the rapper Drake, who gives away hot chicken sliders every year on Oct. 24, his birthday. Atlanta-based Roark specializes in franchised businesses. It bought the Subway sandwich chain in 2023 and backs two holding companies that own multiple restaurant chains: Inspire Brands, the parent of Arby's, Dunkin', Jimmy John's, Sonic and Buffalo Wild Wings; and GoTo Foods, which owns Auntie Anne's, Carvel, Cinnabon and Jamba. Dave's Hot Chicken said its leadership team — including CEO Bill Phelps and the four childhood friends who founded the company — will remain and continue to lead menu innovation, food quality, operations and marketing. 3 Atlanta-based Roark bought the Subway sandwich chain in 2023. Christopher Sadowski '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,' Phelps said in a statement.
Time of India
2 days ago
- Business
- Time of India
Subway owner acquires popular chicken chain in $1 billion deal
Roark Capital, which owns Subway, has acquired Dave's Hot Chicken in a $1 billion deal that will fuel the chicken chain's restaurant expansion, according to Fox News. Roark Capital is an private equity firm that's been buying up established franchises. The deal was announced Monday and brings Dave's into Roark's growing portfolio of brands that includes Subway, Dunkin' and Buffalo Wild Wings. '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,' said Dave's CEO Bill Phelps in a statement. Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Doutora: Truque caseiro para pescoço de peru (Tente isso hoje à noite) Revista & Saúde Saiba Mais Undo ALSO READ: US citizens asked not to use dating apps and follow these precautions amid alarming warning. Check details Dave's Hot Chicken began in 2017 as a humble pop-up in a Los Angeles parking lot and has since expanded to over 300 locations. According to Yahoo Finance, the brand has sold licensing rights for more than 1,000 locations across the U.S., Canada, and the Middle East. Approximately 155 new locations are slated to open this year. The four childhood friends who founded the business will remain actively involved in its growth, as reported by the Associated Press. With only $900, the trio launched Dave's Hot Chicken in a parking lot using portable fryers and folding tables. Shortly after, they opened their first brick-and-mortar restaurant. Live Events Known for its wildly popular Nashville hot chicken , the chain has attracted high-profile investors, including musician and actor Drake, as well as former NFL player and TV personality Michael Strahan. How did the deal happen? In 2019, they partnered with former Wetzel's Pretzels CEO Bill Phelps to launch franchising efforts for the Dave's Hot Chicken brand. Since then, the company has sold franchise rights for over 1,000 locations across the U.S., the Middle East, and Canada. Atlanta-based Roark Capital, which manages $40 billion in assets, already has a strong presence in the restaurant industry through its acquisitions of Arby's, Culver's, and most recently Subway in 2024. Roark also holds investments in GoTo Foods and Inspire Brands, a major fast-food franchise operator. ALSO READ: Social Security Fairness Act big update given on expanded benefits. Here's how it will impact millions of Americans "This is one of the great entrepreneurial journeys of our time, and now we begin the next chapter in the story," said Phelps, now Dave's Hot Chicken's CEO. Inspire Brands is the parent company of Arby's, Dunkin', Jimmy John's, Sonic and Buffalo Wild Wings. GoTo Foods owns Auntie Anne's, Carvel, Cinnabon and Jamba.
Yahoo
2 days ago
- Business
- Yahoo
Popular fried chicken chain acquired by private equity firm in $1B deal
Roark Capital, the private equity firm that's been buying up established franchises, acquired Dave's Hot Chicken in a $1 billion deal that will fuel the chicken chain's restaurant expansion. Dave's Hot Chicken said the investment from Roark will aid the company as it enters its next phase of growth around the globe as it plans to open more than 155 locations this year. The company currently has over 300 locations, but it expects that figure to surpass 400 by the end of the year. Subway Joins Dunkin', Jimmy John's, Buffalo Wild Wings In Roark Capital's Stable The company was founded by three childhood friends in 2017. With only $900, the trio launched Dave's Hot Chicken in a parking lot using portable fryers and folding tables. Shortly after, they opened their first brick-and-mortar restaurant. In 2019, they struck a deal with Wetzel's Pretzels' former CEO Bill Phelps to begin franchising the Dave's Hot Chicken concept. Read On The Fox Business App The company has sold the rights to more than 1,000 franchise locations in the U.S., Middle East and Canada. Subway Agrees To Sale To Roark Capital, Ending Nearly 6 Decades Of Family Ownership "This is one of the great entrepreneurial journeys of our time, and now we begin the next chapter in the story," said Phelps, now Dave's Hot Chicken's CEO. Atlanta-based Roark, with $40 billion in assets under management, already has a foothold in the restaurant space after acquiring Arby's and Culver's, followed by Subway in 2024. It also invests in GoTo Foods and American fast-food restaurant franchise company Inspire Brands. Inspire Brands is the parent company of Arby's, Dunkin', Jimmy John's, Sonic and Buffalo Wild Wings. GoTo Foods owns Auntie Anne's, Carvel, Cinnabon and article source: Popular fried chicken chain acquired by private equity firm in $1B deal
Entrepreneur
2 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
