Dave’s Hot Chicken is reportedly close to being acquired by private equity firm Roark Capital for $1 billion, according to the Wall Street Journal.
Sources told the publication that a deal “could be announced soon” if there are no hurdles. Reuters reported two weeks ago that the brand was exploring a sale and working with investment bank North Point.
Dave’s Hot Chicken declined to comment on the news.
The rising chicken chain—one of the fastest-growing fast casuals over the past few years with more than 250 locations worldwide—began as a popup in an East Hollywood parking lot in 2017. The company operated out of the parking lot for seven months before receiving a $100,000 investment from one of the founders’ brothers so that it could move into a brick-and-mortar location. In 2019, the founders tapped Bill Phelps—cofounder of Wetzel’s Pretzels and an investor of Blaze Pizza—to become CEO and help grow the company.
The chain is known for its hot chicken sliders and tenders, in addition to its house-made kale slaw, mac & cheese, and seasoned French fries. It is majority-owned by founders and childhood friends Dave Kopushyan, Arman Oganesyan, Tommy Rubenyan, and Gary Rubenyan. It’s received several celebrity investments, like Drake, Samuel L. Jackson, Usher, Michael Strahan, and Maria Shriver.
The chain has locations in the U.S., Canada, the Middle East, and most recently the U.K., where it opened its 250th unit worldwide in December. Dave’s opened roughly 80 locations in 2024 and aims to reach the same number in 2025. It’s working with a roughly 1,000-unit pipeline.
The brand recently revamped its training process with YouTube-style videos that embody the brand’s quirky and humourous personality. They cover all positions in under 12 minutes and feature real workers and cameo appearances by the founders. The new videos cut training time in half. Employees watch the videos on iPads via PlayerLync, the brand’s digital training app, which measures their progress through a real-time view of engagement metrics.
Dave’s Hot Chicken also launched catering with ezCater and formed a partnership with Reality Based Group, a mystery shopping and customer experience improvement firm, that will help improve the guest experience.
Roark—with around $37 billion in assets under management—is heavily involved in the restaurant industry. The firm is not only invested in Inspire Brands (parent of Arby’s, Baskin Robbins, Buffalo Wild Wings, Dunkin’, Jimmy John’s, and Sonic), but also GoTo Foods ( Auntie Anne’s, Carvel, Cinnabon, Jamba, McAlister’s, Moe’s, and Schlotzsky’s), The Cheesecake Factory, Hardee’s, Carl’s Jr., and Culver’s. In April 2024, it finalized a nearly $10 billion purchase of Subway.
Dave’s Hot Chicken is the latest example of private equity firms capitalizing on growing restaurant franchises. Last year, Blackstone acquired Tropical Smoothie Cafe and Jersey Mike’s and invested in 7 Brew. Reuters also previously reported that Freddy’s, Crumbl, and 750-unit quick-service franchisee Sizzling Platter are seeking a sale. To kick off 2025, new private equity player Maple Park Capital bought a majority interest in 575-unit franchise Rita’s Italian Ice and Frozen Custard.
