Roark Capital Acquires Majority Stake in Dave’s Hot Chicken

Enjoy the bold flavors of Dave's Hot Chicken's spicy tenders.

News Summary

Roark Capital has taken a significant step in the culinary world by acquiring a majority stake in Dave’s Hot Chicken, valued at around $1 billion. This fast-casual chain, which started in a Los Angeles parking lot just six years ago, has rapidly expanded to over 300 locations. With plans for global expansion, including reaching 4,000 locations, and a commitment to quality, the leadership aims to maintain its loyal customer base while rewarding employees with bonuses post-acquisition.

Roark Capital Takes a Big Bite with Dave’s Hot Chicken Purchase

The fast-casual food scene is heating up, especially with Roark Capital now holding a majority stake in the sizzling brand Dave’s Hot Chicken, a deal that shakes up the industry with a valuation buzzing around $1 billion. While the exact financial details remain under wraps, this major shift is buzzing through the culinary world.

From Parking Lot to Popularity

Can you believe it all started in a Los Angeles parking lot just six years ago? Dave’s Hot Chicken has skyrocketed in popularity and now boasts over 300 locations thanks to franchising! The team behind this spicy sensation has been working hard, and their dedication has really paid off – the restaurant chain reported a jaw-dropping 57% increase in U.S. sales last year, surpassing $600 million, according to industry experts at Technomic.

The Rise of Chicken-Centric Dining

Roark’s investment comes as part of a larger trend where chicken-centric restaurants are grabbing the spotlight, especially since the famous “Chicken Sandwich Wars” kicked off in 2019. It’s clear that customers can’t get enough! Add to that the growing allure of spicy chicken options, and you’ve got a recipe for success. Dave’s Hot Chicken is particularly known for its unique spice levels, including the notorious “Reaper”, which is so hot that it requires customers to sign a waiver. The heat has even sent a few brave souls to the hospital!

A Menu Filled with Flavor

Speaking of flavors, the menu at Dave’s may be small, but it packs a punch with oversized chicken tenders that can be transformed into delicious sliders, perfect for one-handed munching as you enjoy your day. And while they’re planning on hitting the ground running with expansion, the leadership team is committed to continuing their original practices instead of cutting corners.

Plans for Global Expansion

The future looks incredibly bright for Dave’s Hot Chicken! The chain has ambitious plans to expand to as many as 4,000 locations worldwide in the next decade. They’re eyeing places like Canada, the U.K., and even parts of the Middle East. Plus, they’re considering non-traditional locations, like airports and shopping malls, to bring their fiery chicken to even more fans.

Keeping Employees Happy

And it’s not just about the chickens – the people behind the scenes are in for a sweet surprise too! Employees, including support staff and assistant managers, will be receiving generous bonuses, making 20 individuals millionaires after this deal. It’s a great way to acknowledge the hard work they’ve all put into building the brand.

Quality Over Everything

The leadership team, including CEO Bill Phelps who previously helmed Wetzel’s Pretzels, understands that expanding quickly comes with its challenges. To keep their loyal customers satisfied, they’re focusing on maintaining the quality of their food, refusing to skimp on ingredients or speed in preparation. They aim to leverage Roark’s supply chain expertise to help franchisees thrive while keeping costs manageable.

A Promising Journey Ahead

Roark Capital has been watching Dave’s Hot Chicken since its inception, attending openings and conferences to support the brand as it grew. Their first restaurant deal since acquiring Subway for a staggering $9.6 billion last year, this acquisition marks a step forward in their strategy of supporting top-notch restaurant brands.

As Dave’s Hot Chicken continues to receive accolades, like the recent Pacesetter Award at the Restaurant Leadership Conference, fans can expect to taste even more of those mouthwatering chicken dishes. With growth on the horizon, the excitement is palpable – and the spice is just right!