Roark Capital acquires Dave's Hot Chicken for $1 billion

In 2023, Dave's Hot Chicken, founded in 2017 by a group of childhood friends in Los Angeles, was acquired by Roark Capital, a private equity firm known for investing in franchises. The acquisition, valued at $1 billion, is aimed at facilitating the global expansion of the Nashville-style hot chicken chain. Dave's Hot Chicken had experienced rapid growth since its inception, creating a successful restaurant model that began as a small popup and evolved into over 300 locations worldwide. During this time, the brand gained recognition, with notable investments from figures like rapper Drake, further enhancing its profile in the competitive fast-food landscape. The leadership team, including CEO Bill Phelps, who joined the company to oversee its franchising efforts, will remain in place to guide the brand's direction. With plans to open over 155 new locations this year and project reaching more than 400 restaurants by year-end, the ambitious growth strategy highlights Roark Capital's confidence in the potential of the franchise. The acquisition positions Dave's Hot Chicken within Roark's expansive portfolio, which includes other well-known franchises such as Arby's, Dunkin', and Buffalo Wild Wings. The transaction marks yet another significant step for Roark Capital, demonstrating its strategic approach to expanding its reach within the food industry by choosing proven concepts with strong brand identities. As a key player in the restaurant sector, Roark Capital's investments focus on established brands that possess the potential for heightened market penetration and revenue growth. The acquisition of Dave's Hot Chicken aligns with this vision, promising to bolster the brand's presence and increase its footprint in both domestic and international markets. This deal marks a pivotal moment for Dave's Hot Chicken as it transitions into a new phase under Roark Capital's ownership. The founders and executive team are motivated to leverage the investment to enhance their operational capabilities and introduce innovative menu items in an effort to differentiate themselves in a crowded market. With strong consumer demand for quality fried chicken and a growing trend towards authentic, regional cuisines, Dave's Hot Chicken looks well-positioned to thrive in the coming years as it embraces this new chapter of expansion and growth.