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 non-public fairness agency (and Subway proprietor) Roark Capital in a $1 billion deal.

The rooster store, which focuses on a sizzling, Nashville-style of the hen, 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 gaggle of childhood buddies in an East Hollywood, California, parking zone.

Associated: ‘It Was Like a Drug’: How Dave’s Hot Chicken Grew a Cult Following From a Parking Lot

“This is likely one of the nice entrepreneurial journeys of our time, and now we start the subsequent chapter within the story,” stated Invoice Phelps, Dave’s Scorching Rooster’s CEO, in a press launch. “Our complete group is happy concerning the match between Dave’s Scorching Rooster and Roark, and we’re wanting ahead to persevering with to blow our visitors’ minds and unlocking progress and worth for our franchise companions.”

In keeping with data from Placer.ai, “Large 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 progress (67.2% in This autumn 2024 and 60.0% in Q1 2025) of all of the rooster chains, together with Huey Magoo’s, Tremendous Chix, and Elevating Cane’s.

Dave Kopushyan, the “Dave” within the title, is likely one of the founders and the chef who started slinging the now-famous sizzling rooster utilizing moveable fryers and folding tables. He instructed Entrepreneur in 2022 that the corporate’s quick success is making them work even tougher.

“You simply must be current for all of it,” Kopushyan stated. “And it’s important to imagine in your product and use that motivation to maintain going.”

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In 2019, Dave’s started franchising, and the corporate says it has bought the rights to greater than 1,000 places within the U.S., the Center East, and Canada.

Roark is predicated 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}