Roark Capital Strikes Spicey $1 Billion Deal For Dave’s Hot Chicken

In a move that has set the fast-casual dining world abuzz, Roark Capital—the Atlanta-based private equity titan already holding the reins of Subway, Dunkin’, and Arby’s—has added another sizzling brand to its ever-expanding menu: Dave’s Hot Chicken. The deal, valued at a spicy $1 billion, marks a new chapter for the fiery chicken chain that began as a humble parking lot pop-up just eight years ago.

From Parking Lot to Powerhouse

Dave’s Hot Chicken’s origin story reads like culinary folklore. In 2017, three childhood friends pooled $900 and a penchant for heat, setting up shop with portable fryers and folding tables in East Hollywood. Their Nashville-style hot chicken quickly developed a cult following, powered by a menu that ranges from “No Spice” to the infamous “Reaper”—a level so intense it comes with a waiver and, reportedly, the occasional trip to the hospital.

The brand’s meteoric rise is the stuff of entrepreneurial legend. By 2019, Dave’s had caught the eye of Bill Phelps, former CEO of Wetzel’s Pretzels and Blaze Pizza, who joined as CEO and spearheaded franchising efforts. Today, Dave’s boasts over 300 locations, with ambitions to surpass 400 by year’s end and franchise rights sold for more than 1,000 spots across the U.S., Canada, the Middle East, and the U.K.

A Billion-Dollar Recipe

Roark Capital’s acquisition comes at a time when chicken-centric chains are enjoying a renaissance, thanks in part to the “Chicken Sandwich Wars” ignited by Popeyes in 2019. Dave’s Hot Chicken has ridden this wave, posting U.S. sales growth of 57% last year and capturing the attention of younger, spice-loving consumers. The brand’s social media following is as robust as its flavors, with millions of fans across Instagram and TikTok.

Notably, Dave’s isn’t just a darling of Wall Street—its roster of celebrity investors includes rapper Drake, who celebrates his October birthday by handing out free hot chicken sliders, as well as Samuel L. Jackson, Maria Shriver, Michael Strahan, and Boston Red Sox owner Tom Werner.

What’s Next? More Heat, More Locations

Despite the change in ownership, Dave’s Hot Chicken’s leadership—including Phelps and the founding friends—will stay on to ensure the brand’s signature blend of spice and swagger remains intact. Their focus: menu innovation, food quality, operational excellence, and, of course, rapid expansion.

Roark Capital’s restaurant empire is formidable, with assets under management topping $40 billion. Its portfolio includes Inspire Brands (parent to Arby’s, Dunkin’, Sonic, and Buffalo Wild Wings) and GoTo Foods (home to Auntie Anne’s, Carvel, and Cinnabon). The acquisition of Dave’s Hot Chicken is Roark’s first major restaurant deal since its $9.6 billion Subway buyout in 2023, further cementing its status as the kingmaker of franchised dining.

The Bottom Line

From parking lot upstart to billion-dollar brand, Dave’s Hot Chicken is poised to turn up the heat globally, fueled by Roark Capital’s deep pockets and franchising prowess. As CEO Bill Phelps put it, “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”.

With more than 155 new restaurants set to open this year alone, the world should brace itself: the chicken is only getting hotter.

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