Dave’s Hot Chicken, known for its spicy and flavorful offerings, announced on Monday that it has been acquired by Roark Capital, a private equity firm, in a transaction valued at approximately $1 billion. The fast-growing chain initially opened as a pop-up in a Los Angeles parking lot back in 2017 and has since expanded rapidly. By the end of this year, the company anticipates reaching 400 locations globally, cementing its status as a major player in the Nashville-style hot chicken market.
Celebrity backing has played a part in its growth, with rapper Drake being among its investors. Each year on October 24th, coinciding with his birthday, Drake traditionally gives away hot chicken sliders, adding to the buzz surrounding the brand.
Roark Capital, based in Atlanta, is known for its investments in franchised enterprises. Its portfolio includes notable brands such as the Subway sandwich chain, which it acquired in 2023. Roark also supports two holding companies that own a variety of restaurant chains; Inspire Brands oversees Arby’s, Dunkin’, Jimmy John’s, Sonic, and Buffalo Wild Wings, while GoTo Foods manages Auntie Anne’s, Carvel, Cinnabon, and Jamba.
Dave’s Hot Chicken confirmed that its existing leadership structure will remain intact. CEO Bill Phelps and the four original founders, childhood friends who launched the company, will continue to be at the helm, focusing on menu creativity, maintaining food quality, overseeing operations, and advancing marketing strategies.
“Our organization is thrilled about the synergy between Dave’s Hot Chicken and Roark. We are eager to keep astonishing our customers and unlocking growth and value for our franchise partners,” Phelps expressed in a statement.