Dave's Hot Chicken, the rapidly growing fast-food chain specializing in Nashville-style hot chicken, has been acquired by private equity powerhouse Roark Capital in a landmark $1 billion deal announced on Monday, June 2, 2025. This acquisition marks a significant milestone for the Los Angeles-based brand, which began humbly as a popup in a parking lot just eight years ago.
Founded in 2017 by four childhood friends—Dave Kopushyan, brothers Tom and Gary Rubenyan, and Oganesyan—Dave's Hot Chicken started with only $900 pooled together and a simple setup of portable fryers and folding tables. Their bold venture quickly captured the hearts and taste buds of customers, leading to the opening of their first brick-and-mortar location in 2018. Since then, the brand has exploded in popularity, now boasting over 300 locations across the United States, Canada, and overseas, with plans to surpass 400 by the end of 2025.
The acquisition by Roark Capital, an Atlanta-based firm with $40 billion in assets under management, brings Dave's Hot Chicken into a portfolio that includes well-known brands such as Subway, Dunkin', Arby's, Buffalo Wild Wings, and Auntie Anne's. Roark purchased Subway in 2023 for over $9 billion and backs two major holding companies—Inspire Brands and GoTo Foods—that operate a slew of fast-food and franchise chains including Jimmy John's, Sonic, Cinnabon, and Jamba.
Despite joining this vast network, Dave's Hot Chicken will maintain its distinct identity and leadership. CEO Bill Phelps, who stepped in as part of a 2019 franchising initiative, will continue to lead the company alongside the four founding friends. Phelps expressed enthusiasm about the partnership, stating, "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." Similarly, Company President Jim Bitticks reassured that "We’re all staying. Nobody is leaving. The goal is to keep it growing," adding, "You’ll see us popping up everywhere. We stand alone within Roark's portfolio and that was on purpose. We expect to be a super high performer, like, the new rock star within the portfolio."
The brand's rapid growth is no accident. According to data from Placer.ai, Dave's Hot Chicken led the "Big Chicken" category with a remarkable 67.2% year-over-year visit growth in the fourth quarter of 2024 and 60.0% in the first quarter of 2025—outpacing competitors like Huey Magoo's, Super Chix, and Raising Cane's. This surge reflects the rising popularity of Nashville-style hot chicken, a spicy Southern specialty that Dave's has mastered and popularized nationwide.
Part of the brand's allure comes from its simple yet bold menu, offering chicken tenders and sandwiches with spice levels ranging from mild to the fiery "Reaper," which even requires a disclaimer. The chain has attracted high-profile investors, including rapper Drake, who annually celebrates his birthday on October 24 by giving away Dave's hot chicken sliders, and former NFL and TV personality Michael Strahan.
Since beginning to franchise in 2019, Dave's Hot Chicken has sold licensing rights for more than 1,000 locations across the U.S., the Middle East, and Canada, signaling its global ambitions. This year alone, the company plans to open 155 new locations, further cementing its footprint in major metropolitan areas such as Detroit, Chicago, Houston, Dallas-Fort Worth, and Kansas City, Missouri.
The acquisition by Roark Capital is expected to fuel this expansion, providing the financial backing and operational expertise needed to scale rapidly while maintaining quality and innovation. Roark’s extensive experience in franchised businesses positions it well to support Dave’s next chapter. The firm’s portfolio includes fast-food giants like Culver’s, Hardee’s, and Carl Jr.’s, alongside its holdings in Inspire Brands and GoTo Foods.
Industry observers and company insiders alike view Dave's Hot Chicken's journey as a quintessential entrepreneurial success story. Phelps described it as "one of the great entrepreneurial journeys of our time," emphasizing the bright future ahead as the company embarks on this new phase with Roark’s support.
For the founding friends, the acquisition is not just a financial milestone but a validation of their hard work and belief in their product. Kopushyan, the chef and namesake of the chain, reflected on the rapid growth, saying, "You just have to be present for all of it. And you have to believe in your product and use that motivation to keep going." Their continued involvement ensures that the brand's original spirit and commitment to quality remain intact as it scales globally.
With plans to open hundreds more locations this year and the backing of a private equity giant, Dave's Hot Chicken is poised to become a dominant force in the fast-food industry. As Bitticks put it, "You’ll see us popping up everywhere," signaling that this spicy chicken sensation is just getting started.
