In a move that’s turning heads across the foodservice and private equity sectors, Roark Capital has acquired a majority stake in Dave’s Hot Chicken, one of the fastest-growing names in the fast-casual dining segment. The deal, announced earlier this week, signals Roark’s continued bullish stance on scalable, high-growth restaurant chains and marks yet another strategic addition to its powerhouse portfolio, which includes brands like Arby’s, Dunkin’, Sonic Drive-In, and Buffalo Wild Wings under Inspire Brands.
While the terms of the deal were not officially disclosed, industry insiders suggest the transaction values Dave’s Hot Chicken at over $1 billion, reflecting the brand’s meteoric rise and future potential.
From Parking Lot Pop-Up to PE Powerhouse
Founded in 2017 by chef Dave Kopushyan and three friends in a Los Angeles parking lot, Dave’s Hot Chicken quickly gained cult status for its Nashville-style hot chicken tenders and sliders, served with a signature spice scale ranging from “No Spice” to “Reaper.” By 2021, the brand had already attracted heavyweight backers including Drake, Samuel L. Jackson, and Boston Red Sox Chairman Tom Werner.
Its franchising model — highly focused, with streamlined operations and a simple menu — has helped Dave’s expand from 7 locations in 2020 to over 200 locations in 2024, with more than 700 additional units under development across the U.S., Canada, and the Middle East. In terms of unit economics, the brand boasts $3.3 million AUV (Average Unit Volume), putting it well ahead of many peers in the fast-casual category.
Roark’s Bet on Category Resilience
For Roark Capital, which has long maintained an appetite for differentiated foodservice concepts, Dave’s Hot Chicken offers a compelling combination of brand heat, operational simplicity, and cultural cachet. This acquisition follows Roark’s consistent strategy of backing category leaders with long-term franchising potential and robust unit-level economics.
“This is one of the great entrepreneurial journeys of our time, and now we begin the next chapter in the story,” said Bill Phelps, CEO of Dave’s Hot Chicken in a statement to Nation’s Restaurant News.
This acquisition is not merely about numbers, it’s also a signal of growing institutional interest in the chicken category, which continues to outperform other proteins in fast-casual formats. From Chick-fil-A’s enduring dominance to rising niche players like Raising Cane’s and Hot Chicken Takeover, investors are eyeing chicken as the next frontier for repeatable, franchisable food concepts.
Looking Ahead
With Roark’s backing, the next phase of Dave’s Hot Chicken will likely involve more international expansion, technology investments, and supply chain optimization. For Roark, it’s another notch in a belt of some of the most prominent foodservice investments in recent decades.
For the restaurant industry, the message is loud and clear — the playbook for modern QSR success is evolving, and the fusion of focused menus, franchise-first models, and cultural storytelling is shaping what tomorrow’s dominant brands will look like.
