Roark Capital Acquires Dave's Hot Chicken for $1 Billion
Private equity firm Roark Capital strengthens its fast-food franchise presence with the acquisition of the rapidly growing chicken chain.
Roark Capital, an Atlanta-based private equity firm, has acquired Dave's Hot Chicken for approximately $1 billion.
This acquisition follows Roark's purchase of Subway earlier in 2023, further expanding its footprint in the fast-food franchise sector.
Founded in 2017 as a small stall in a Los Angeles parking lot, Dave's Hot Chicken has quickly expanded to operate locations across the United States, Canada, the Middle East, and the United Kingdom, recently celebrating the opening of its 250th store in December.
The chain aims to reach 80 locations by 2025.
Dave's Hot Chicken specializes in Nashville-style hot chicken served in various formats, including sandwiches and tenders, accompanied by sides such as macaroni and cheese, kale salad, and seasoned fries.
Since 2019, the chain's expansion has been led by Bill Phelps, a co-founder of Wetzel's Pretzels and a shareholder in Blaze Pizza.
The original founders—four childhood friends—continue to hold the majority ownership of the business.
The chain has adopted an engaging marketing strategy, utilizing humor and innovative employee training methods that incorporate short video formats akin to YouTube to enhance training efficiency.
This approach reportedly reduces training time by half, with employees accessing the content on iPads through the PlayerLync app, which tracks their progress in real time.
Furthermore, Dave's Hot Chicken recently launched a catering service in partnership with ezCater and has collaborated with Reality Based Group, a company specializing in customer experience audits.
The chain has garnered investments from several high-profile individuals, including rapper Drake, who offers complimentary sliders on his birthday every October 24, along with notable figures such as Samuel L. Jackson, Usher, Michael Strahan, and Maria Shriver.
Roark Capital manages approximately $37 billion in assets, with a portfolio that includes brands such as Subway, The Cheesecake Factory, Carl's Jr., Culver’s, and affiliated companies like Inspire Brands and GoTo Foods, which own Arby’s, Dunkin’, and Cinnabon.
This acquisition underscores a growing trend in which private equity firms are increasingly investing in fast-food franchises.
In 2024, Blackstone acquired Tropical Smoothie Cafe and Jersey Mike's, while Maple Park Capital secured a majority stake in Rita's Italian Ice and Frozen Custard.
This acquisition follows Roark's purchase of Subway earlier in 2023, further expanding its footprint in the fast-food franchise sector.
Founded in 2017 as a small stall in a Los Angeles parking lot, Dave's Hot Chicken has quickly expanded to operate locations across the United States, Canada, the Middle East, and the United Kingdom, recently celebrating the opening of its 250th store in December.
The chain aims to reach 80 locations by 2025.
Dave's Hot Chicken specializes in Nashville-style hot chicken served in various formats, including sandwiches and tenders, accompanied by sides such as macaroni and cheese, kale salad, and seasoned fries.
Since 2019, the chain's expansion has been led by Bill Phelps, a co-founder of Wetzel's Pretzels and a shareholder in Blaze Pizza.
The original founders—four childhood friends—continue to hold the majority ownership of the business.
The chain has adopted an engaging marketing strategy, utilizing humor and innovative employee training methods that incorporate short video formats akin to YouTube to enhance training efficiency.
This approach reportedly reduces training time by half, with employees accessing the content on iPads through the PlayerLync app, which tracks their progress in real time.
Furthermore, Dave's Hot Chicken recently launched a catering service in partnership with ezCater and has collaborated with Reality Based Group, a company specializing in customer experience audits.
The chain has garnered investments from several high-profile individuals, including rapper Drake, who offers complimentary sliders on his birthday every October 24, along with notable figures such as Samuel L. Jackson, Usher, Michael Strahan, and Maria Shriver.
Roark Capital manages approximately $37 billion in assets, with a portfolio that includes brands such as Subway, The Cheesecake Factory, Carl's Jr., Culver’s, and affiliated companies like Inspire Brands and GoTo Foods, which own Arby’s, Dunkin’, and Cinnabon.
This acquisition underscores a growing trend in which private equity firms are increasingly investing in fast-food franchises.
In 2024, Blackstone acquired Tropical Smoothie Cafe and Jersey Mike's, while Maple Park Capital secured a majority stake in Rita's Italian Ice and Frozen Custard.
