Mirror Review
June 3rd, 2025
Summary:
- Private equity giant Roark Capital, the parent company of Subway and Dunkin’, has acquired a majority stake in the rapidly expanding Nashville-style hot chicken chain, Dave’s Hot Chicken.
- The Dave’s Hot Chicken acquisition marks a new chapter for the cult-favorite brand, making way for global growth while promising to keep its fiery spirit and leadership team the same.
What we Know About The Acquisition so Far
The Dave’s Hot Chicken acquisition by Roark Capital is valued at approximately $1 billion.
This now brings Dave’s Hot Chicken into a powerful portfolio that includes Inspire Brands (the parent of Arby’s, Dunkin’, Jimmy John’s, Sonic, and Buffalo Wild Wings) and GoTo Foods (owner of Auntie Anne’s, Carvel, Cinnabon, and Jamba).
Dave’s Hot Chicken, which famously started as a $900 parking lot pop-up in Los Angeles in 2017 by four friends—Dave Kopushyan (Chief Culinary Officer), Arman Oganesyan (Chief Brand Officer), and brothers Tom and Gary Rubenyan—has experienced meteoric growth.
The chain, known for its seven levels of spice ranging from “No Spice” to the waiver-requiring “Reaper”, has captivated customers and celebrity investors alike, including Drake, Samuel L. Jackson, and Usher.
“Our entire organization is excited about the fit between Dave’s Hot Chicken and Roark,” Phelps stated. “We’re looking forward to continuing to blow our guests’ minds and unlocking growth and value for our franchise partners”.
Key Insights on the Expansion Plans
The Roark Dave’s Acquisition is more than just a new owner; it’s a team-up designed to make Dave’s Hot Chicken grow even faster than it already has. Here’s what this means for the brand’s future:
- Lots of New Locations:
Dave’s Hot Chicken plans to open 155 to 165 new places this year, and they aim for similar numbers in 2026. This adds to their amazing growth, going from just seven locations in 2021 to over 315 spots today.
- Many Franchise Deals Ready:
The company has already sold rights for more than 1,000 franchise locations across the U.S., the Middle East, and Canada. This means a steady flow of new restaurants for a long time.
- Global Reach:
With Roark Capital’s setup and large group of franchise partners around the world, Dave’s Hot Chicken is looking at big international growth.
After doing well in London, they’re planning to open in other European countries and explore the big opportunities in Asia. “You’ll see us popping up everywhere,” said Jim Bitticks, President of Dave’s Hot Chicken.
- Nontraditional Locations:
Get ready to see Dave’s Hot Chicken in more varied spots. The brand is actively working to open in places like airports, such as Harry Reid International in Las Vegas, and on college campuses all over the country.
- Leadership Continuity:
A key part of this deal is that the leaders will stay in charge.
CEO Bill Phelps and President Jim Bitticks, along with co-founders Arman Oganesyan (Chief Brand Officer) and Dave Kopushyan (Chief Culinary Officer), will keep their jobs.
This helps make sure the brand’s main identity, food quality, and excellent operations stay the same.
As Bill Phelps mentioned, “We’re all staying. Nobody is leaving. The goal is to keep it growing”. He also added, “We expect to be a super high performer, like, the new rock star within the portfolio”.
- Smart Help from Roark:
Subway owner Roark Capital buys Dave’s not just for its money but for its smart ways of running businesses.
Roark plans to use its proven methods from brands like Subway and Dunkin’ to help Dave’s grow big. This includes making their supply chain better and using data to boost Dave’s strong presence on social media.
The Billion Dollar Promise
The Dave’s Hot Chicken acquisition by Roark Capital, valued at around $1 billion, shows a strong belief in the brand’s future.
The deal recognizes Dave’s Hot Chicken’s impressive money-making ability, with sales of almost $617 million in the U.S. in 2024, and predictions to go over $1.2 billion this year.
This investment makes Dave’s Hot Chicken a “star” among the many restaurant brands Roark owns. People in the industry are already wondering if the company will go public with an IPO (Initial Public Offering) in the next three to five years, similar to how Roark handled other brands like Wingstop.
“Bill [Phelps] likes to call it the three-year sprint to IPO”, shared Jim Bitticks, showing how big the goals are for the brand.
Significantly, Bitticks also shared that the deal included “significant bonuses” for restaurant-level managers and support staff.
He proudly stated, “About 20 people were made millionaires out of this deal, and that wasn’t just investors”.
End Note
The Dave’s Hot Chicken acquisition by Roark Capital is more than just a business deal; it’s a big show of confidence in the growing hot chicken market and Dave’s Hot Chicken’s special appeal.
With Roark’s help, lots of experience in franchises, and global reach, Dave’s is in a great spot to keep growing quickly.
It’s moving from being a popular sensation to a major fast-casual food chain around the world.
This partnership promises an exciting future for the brand, its franchise owners, and hot chicken fans everywhere.
