Chowing Down on a Luxe Bite: Fast Food Goes Upscale with Dave's Hot Chicken's $1B Investment
Privately-owned investment company buys popular fried chicken restaurant chain for a billion dollars
Fast food's taking a luxurious turn as pricing hikes have 78% of Americans viewing it as a luxury, but that ain't stopping the chicken titan, Dave's Hot Chicken, from expanding at a rapid pace. Scott Rodrick, Cali restaurateur, spills the tea on the industry's challenges with Maria Bartiromo.
Enter Roark Capital, the private equity firm greedy for franchises, scooping up Dave's Hot Chicken for a cool billion dollar deal. This investment fuels the chicken chain's globetrotting expansion, promising a whopping 155+ restaurants to open by the end of the year, taking their grand total to over 400 locations.
But wait, there’s more! Subway's jumping ship too, signing on the dotted line with Roark Capital, bringing an end to nearly six decades of family ownership. Time to catch up, Subway!
Dave's Hot Chicken, born from three childhood friends and $900 in 2017, rose from a humble parking lot filled with portable fryers and folding tables to first brick-and-mortar glory. Now, with billion-dollar backing, check out their hot wings in a global takeover, baby!
Top Chef Bill Phelps, formerly of Wetzel's Pretzels, partnered with the trio in 2019 to franchise the concept across the States, Europe, and the Great White North. With over 1,000 franchise locations already sold, the world's our runway, baby!
Atlanta-based Roark Capital, with a whopping $40 billion in assets under management, has stakes in Arby's, Culver's, and, as of 2024, Subway. Roark's also got its hands in GoTo Foods and Inspire Brands, which houses Arby's, Dunkin', Jimmy John's, Sonic, Buffalo Wild Wings, Auntie Anne's, Carvel, Cinnabon, and Jamba. Roark's the Sarah Connor to fast food franchises – ain't nobody stopping us now!
Internationally, the brand plans to sizzle across Europe and Asia. Plans for non-traditional locations such as airports, malls, and college campuses are in the works, positioning Dave's Hot Chicken for global domination. Keep your eyes peeled for that fiery logo!
The fast-food industry is experiencing a shift as luxury pricing encourages consumers to view it as a luxury, highlighted by Dave's Hot Chicken's rapid expansion. Roark Capital, with investments in multiple franchises, recently acquired Dave's Hot Chicken for a billion dollars, fueling global expansion. Subway, another franchise under Roark Capital's management, ends nearly six decades of family ownership.
With a billion-dollar investment and over 1,000 franchise locations already sold, Dave's Hot Chicken, born from humble beginnings, aims for global domination, with non-traditional location plans include airports, malls, and college campuses. Roark Capital, managing over $40 billion in assets, has stakes in various franchises and food businesses, positioning itself as a significant player in the industry's growth.
