Dave’s Hot Chicken has become one of the hottest rising stars in the fast casual dining space The brand’s journey from a humble $900 parking lot pop-up to a billion-dollar valuation acquired by a leading private equity firm is an incredible success story, Here is an in-depth look at how a scrappy chicken concept grew into one of America’s most buzzworthy restaurant chains,
Bootstrapped Beginnings
In 2017 four childhood friends – Arman Oganesyan Dave Kopushyan, and brothers Tommy and Gary Rubenyan – launched a parking lot pop-up stand in East Hollywood with just $900 in starting capital. Oganesyan, having no prior restaurant experience, convinced chef Kopushyan to join him in selling Nashville hot chicken. After perfecting their signature spicy chicken recipe, they opened for business.
Within days, word spread on social media and lines stretched around the block. The operation was bare bones – just a fryer, a heat lamp, and some borrowed furniture – but the food resonated with locals. A rave review from LA food blog Eater five days in catalyzed Dave’s meteoric rise.
Cult Following to Commercial Enterprise
In late 2017, Dave’s opened its first permanent location in East Hollywood. The tiny store generated over $5 million in sales that first year off the power of its viral food and digital marketing. Instagram was core to Dave’s success, along with collaborations with celebrities like rapper Drake.
Dave’s heated growth continued through franchising and branch expansion. From just one store in 2017, they reached 300 locations by 2025 across the US and abroad. 2025 systemwide sales are projected to surpass $1.2 billion.
A Billion-Dollar Brand Attracts Private Equity
In June 2025, Dave’s Hot Chicken announced the sale of a 70% stake to Roark Capital at a $1 billion valuation. Roark, the private equity firm behind Arby’s, Buffalo Wild Wings and other restaurants, beat out several suitors for the emerging brand.
The founders and early investors scored big paydays from the deal. The four cofounders each owned around 10% of Dave’s before the acquisition. They collectively netted over $300 million by selling 80% of their stakes. Early backers like actor Samuel L. Jackson and producers John Davis and Bill Phelps earned huge multiples on their investments.
Key Factors in Dave’s Runaway Success
Lean startup model – By bootstrapping the initial parking lot popup, Dave’s validated demand before taking on significant overhead. This allowed quick scaling.
Cult following – Dave’s built a cult fanbase online through Instagram and TikTok. User-generated social content expanded awareness.
Disciplined franchising – Under an experienced leadership team, Dave’s strategically expanded its store count threefold from 100 in 2022 to over 300 by 2025.
Distinct brand – The founders gave Dave’s a strong identity rooted in its LA origins and spicy menu. This resonated across demographics.
Market timing – Dave’s tapped into rising popularity and menu diversity in the chicken category. Their Nashville hot chicken filled a niche.
The Road Ahead
Dave’s faces high growth expectations from investors after its acquisition. Roark brings operational expertise to optimize supply chain management, delivery, and marketing. International expansion and ghost kitchens could fuel continued expansion. While competing in a crowded market, Dave’s proven model and leadership continuity position it for sustained success.
The billion-dollar valuation reflects belief in Dave’s staying power. By combining scrappiness with strategic franchising, the brand has found the recipe for fast casual stardom. For entrepreneurs, Dave’s journey shows how creativity, customer experience, and calculated risks can transform small ideas into big business.
Bootstrapped beginnings met with overwhelming demand
The $900 that seeded Dave’s Hot Chicken paid for ingredients and a fryer. Within days, the stand was drawing long queues. Their signature Nashville-style hot chicken spread quickly through Instagram and local buzz.
By late 2017, the founders opened their first permanent location. The store’s success was immediate and reinforced by a tight digital strategy. Their approach was not groundbreaking, it was timely, experience-focused, and built around photogenic food.
Roark Capital’s bet on scalable spice
Roark Capital’s investment highlights broader trends in private equity interest in franchise-ready restaurant brands. The Atlanta-based firm owns stakes in Arby’s, Buffalo Wild Wings, and Dunkin’. Dave’s Hot Chicken joins this portfolio with a growth runway that includes international opportunities and digital loyalty potential.
At eight times projected sales, the valuation reflects investor confidence in the brand’s long-term profitability. Roark brings operational expertise that could bolster supply chain efficiency, broaden third-party delivery deals, and support co-branded campaigns or ghost kitchen rollouts.
Is Dave’s Hot Chicken Worth The Hype?
FAQ
How much is Dave’s Hot Chicken Company worth?
Dave’s Hot Chicken now has over 300 locations around the world. The founders of Dave’s Hot Chicken sold just $40 worth of food on their first day in a dirty parking lot. After eight years of perseverance and luck, the company has been acquired by private equity firm Roark Capital at a reported $1 billion valuation.
How much is Dave’s chicken worth?
On Monday, private equity firm Roark Capital bought a majority stake in Dave’s Hot Chicken, which is now a franchise business with more than 300 locations, in a deal worth “pretty close” to $1 billion, Dave’s CEO Bill Phelps said on CNBC’s “Squawk Box.” “It’s insane what we did,” Phelps said.
Did Dave’s Hot Chicken sell for a billion?
Dave’s Hot Chicken was acquired by Roark Capital for approximately $1 billion. The deal, which closed recently, involved the private equity firm purchasing a majority stake in the fast-growing chicken chain, according to CNBC.
How much is Dave’s Hot Chicken franchise?