Image Courtesy of Dave’s Hot Chicken
Dave’s Hot Chicken Sold for $1 Billion to Subway Private Equity Owner, Roark Capital
June 5, 2025
In a major move that signals both confidence and ambition, Dave’s Hot Chicken has been acquired for $1 billion by Roark Capital, the same private equity powerhouse behind Subway and Dunkin’. This milestone marks the latest chapter in one of the most impressive fast-casual success stories in modern restaurant history.
From a Parking Lot Dream to a Billion-Dollar Brand
Dave’s Hot Chicken began as a humble parking lot pop-up in East Hollywood in 2017. Fast forward to today, and the Nashville-style hot chicken phenomenon is poised to close out the year with more than 400 locations worldwide. The company’s rapid growth has been fueled by a laser-focused commitment to quality, guest experience, and bold marketing — much of which is driven by its powerful social media presence.
The leadership team, including the original founders, will remain in place following the acquisition. CEO Bill Phelps emphasized the continuity and shared vision between Dave’s and Roark Capital in a statement within the press release announcement of the sale: “This is one of the great entrepreneurial journeys of our time, and now we begin the next chapter in the story. 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.”
Why Roark Capital Made the Move
Roark Capital is no stranger to building food and hospitality empires. With a portfolio that includes names like Subway, Arby’s, Sonic, and Buffalo Wild Wings, the Atlanta-based firm brings strategic expertise and financial backing that could accelerate Dave’s Hot Chicken’s global expansion.
What makes Dave’s Hot Chicken so attractive? Per the press release, it’s a combination of high unit growth, strong sales performance, and top-tier guest satisfaction metrics. The brand also boasts one of the most aggressive and successful digital marketing strategies in the fast-casual sector, earning nearly 6 million social media followers and driving hundreds of millions of views through user-generated content.
North Point Mergers & Acquisitions served as the exclusive financial advisor to Dave’s Hot Chicken in the deal.
A Celebrity-Fueled Brand on Fire
In addition to its business performance, Dave’s Hot Chicken has become a cultural icon, bolstered by a roster of celebrity backers and fans. Among the most notable is rapper and music mogul Drake, who holds a significant ownership stake in the company. Drake’s involvement isn’t passive — just last year, he celebrated his birthday by giving away free sliders at all Dave’s Hot Chicken locations, making headlines across the country.
Likewise, R&B superstar Usher recently opened Atlanta’s first Dave’s Hot Chicken restaurant in the suburb of Conyers, in partnership with longtime franchisees Lawrence Kourie and Andrew Feghali.
“Once I tried Dave’s Hot Chicken and spoke with the founders of the brand, I knew I wanted to be involved with the company,” Usher said in a statement to RetailWire. “I’m excited to open Atlanta’s first Dave’s Hot Chicken and look forward to everyone from my hometown trying it.”
It’s this blend of strong business fundamentals and pop culture appeal that has given the brand an edge in a crowded fast-casual market.
What’s Next for Dave’s Hot Chicken?
The Roark Capital acquisition isn’t just a financial milestone — it’s a strategic leap. With Roark’s backing, Dave’s Hot Chicken will likely accelerate its international footprint and further innovate in areas like operations, digital ordering, branding, and menu development. Importantly, the founders and current leadership will continue to drive day-to-day decisions and keep the brand’s unique personality intact.
After partnering with Usher last year, Phelps confirmed that the brand’s mission remained unchanged: “Our focus remains on making the most craveable, hottest and juiciest hot chicken on the planet.”
From a parking lot in L.A. to a billion-dollar valuation, Dave’s Hot Chicken has proven that with the right mix of authenticity, consistency, and creativity, anything is possible. And now, with Roark Capital in its corner, the next era of the hot chicken empire is about to begin.
Dave’s Hot Chicken: An All-American Success Story
The $1 billion acquisition of Dave’s Hot Chicken is more than just a high-dollar deal — it’s a testament to the evolving landscape of fast-casual dining. Consumers are gravitating toward brands that blend quality, personality, and social engagement. With a dynamic leadership team, celebrity backing, and now private equity firepower, Dave’s Hot Chicken is positioned to redefine the global standard for what a cult-favorite restaurant brand can become.
Whether you’re a fan of the food, a franchisee, or a competitor watching closely, one thing’s for certain: Dave’s Hot Chicken isn’t cooling down anytime soon.
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