The Wall Street Journal is reporting that California-based Dave’s Hot Chicken is in talks to sell for $1 billion to Roark Capital, a private equity firm that owns brands such as Subway and Arbys.
Daves Hot Chicken is one of the fastest-growing casual food chains in the nation, with 156% sales increase since 2022, according to research firm Technomic.
Dave’s Hot Chicken has become one of the most popular chicken chains very quickly. People are willing to wait hours in line for their crazy spicy fried chicken, which makes a lot of people wonder who owns this viral hit.
Humble Origins
In 2017, Dave’s Hot Chicken opened in a parking lot in East Hollywood. The first owners were three friends from childhood: Dave Kopushyan, Arman Oganesyan, and Tommy and Gary Rubenyan.
With just $900 scraped together, a couple folding tables, and a portable fryer, they set up shop under the night sky Thanks to word of mouth and Instagram, long lines quickly formed every night
Their big break came when a food blogger from Eater LA wrote “East Hollywood’s New Late Night Hot Chicken Stand Might Blow Your Mind” The rest is history
Meteoric Rise
That first rave review put Dave’s Hot Chicken on the map The lines grew exponentially, snaking around the block The founders opened their first brick-and-mortar location on Sunset Boulevard shortly after.
Over the next few years, Dave’s Hot Chicken exploded in popularity. The addicting spicy chicken and laid-back SoCal vibe drew in hordes of loyal fans.
Celebrities like Drake, Steph Curry, and Shia Labeouf have been spotted chowing down on their signature tenders and sliders. The brand has expanded to over 25 locations in California, Texas, Illinois, and Oregon.
Current Ownership
As of 2020, Dave’s Hot Chicken is majority-owned by Bill Phelps and Johnny Rockets founder John Jeffers.
Phelps comes from the Wetzel’s Pretzels family. He helped expand that brand to over 300 locations worldwide. His expertise in franchising and experience in the food industry made him the perfect partner.
Dave Kopushyan and the other co-founders maintain a minority stake in the company. They still play an active role, leading site selection and developing new menu items.
Franchising Frenzy
With this new group of owners, Dave’s Hot Chicken is now in a fast franchise growth mode. Their goal is to open over 200 stores by 2025.
A Dave’s Hot Chicken franchise can cost anywhere from $553,000 to $1,000,000 to open. 2 million. The company charges $40,000 for a franchise and a royalty fee equal to 5% of sales every month.
Dave’s Hot Chicken is actively seeking franchisees across the United States. They are targeting markets like Dallas, Atlanta, New York City, and Boston for expansion.
International franchising is also on the horizon. They already have interest from partners in the Middle East and Asia.
Secret to Success
Dave’s Hot Chicken has figured out a winning formula that keeps customers lining up every day. Here are some keys to their success:
Menu – The focus is simple – fried chicken tenders and sliders in seven spice levels ranging from “No Spice” to “Reaper”. They keep the menu tight.
Quality – They use fresh, never-frozen chicken that is marinated for 24 hours in proprietary seasonings. The batter is made in-house daily. This is not your average fried chicken.
Spice – The spice blends take center stage. It’s an addicting level of heat that keeps you coming back.
Vibe – The laid-back atmosphere and SoCal roots are part of the appeal. Ordering “Cluckin’ Hot” chicken and sitting on picnic tables adds to the experience.
Technology – A high-tech kitchen system allows for speed and consistency. Customers get piping hot chicken in just 4-5 minutes.
Social Media – Dave’s Hot Chicken dominates Instagram and TikTok. User generated content and viral food reviews drive brand awareness.
** customer service** – The friendly staff helps explain the spice levels and offers free drinks if a level is too hot to handle. This personal touch keeps customers satisfied.
The Future of Dave’s Hot Chicken
In just a few short years, Dave’s Hot Chicken has disrupted the fried chicken scene. Their spikes of spice and lines out the door have captured the hearts and taste buds of cities nationwide.
Under new ownership, Dave’s Hot Chicken is poised for enormous growth. The sky is the limit for this viral brand born out of a parking lot and a portable fryer. One thing is for sure – they won’t be cooling down anytime soon.
The passionate fans will continue flocking to Dave’s Hot Chicken for their unmatched fried chicken fix. As they expand across the country, more taste buds are sure to get blown away by that first tender dipped in Reaper sauce.
What exactly is Nashville-style chicken, anyway?
Being angry is said to taste better when it’s cold, and the story of how hot chicken came to be shows that this may be true.
Legend says the dish was created by the family behind Princes Hot Chicken in Nashville, Tennessee. Thornton Prince, the founder, is said to have been a notoriously unfaithful partner, so after a long night out with another woman, his girlfriend decided to serve him a painfully spicy plate of fried chicken.
He liked it so much, though, that he improved the recipe and opened Prince’s Hot Chicken Shack in 1945. The restaurant is still open and was recognized as an American Classic by the James Beard Foundation in 2013.
Hot chickens popularity has exploded in recent years, spawning versions on menus across the country. Even fast-food chain KFC has Nashville Hot Chicken on its menu.
Where was Dave’s Hot Chicken founded? How many stores do they have in California?
Dave’s Hot Chicken was founded in 2017 by four friends in East Hollywood. Since then, the fast food chain known for its Nashville-style chicken has grown to include more than 270 locations across the country, with about 70 of its 270 locations in California.
Music superstar Drake famously invested in the Los Angeles-headquartered restaurant chain in 2021. For the last three years, the Canadian rapper gave away free chicken slider sandwiches on his birthday in October.
Drake is not the only big name to have invested in Daves Hot Chicken: Usher, Maria Shriver, Samuel L. Jackson, and Michael Strahan are also involved.
Nashville-style hot chicken, which comes in seven levels of spice from “No Spice” to “Reaper,” is what Dave’s Hot Chicken is known for.
The Truth About Dave’s Hot Chicken
FAQ
Who are the owners of Dave’s hot chicken?
David’s Hot Chicken was started in 2017 by four childhood friends: Gary Rubenyan, Tommy Rubenyan, Arman Oganesyan, and Dave Kopushyan. They started as a pop-up restaurant in an East Hollywood parking lot, using a $900 investment.
Is Dave’s Hot owned by Drake?
Bloomberg said Drake was one of the biggest investors in the company when he bought a small stake in it in 2021, but they didn’t say how much ownership he had or how he got it.
What celebrity backs Dave’s hot chicken?
NEW RESTAURANT ALERT: Dave’s Hot Chicken, a Los Angeles-based chain with celebrity backers like Drake, Samuel L. Jackson, and Maria Shriver, has opened its fourth Valley location at Goodyear’s downtown GSQ district. Dave’s Hot Chicken, a Los Angeles-based chain .
Who owns Dave’s hot chicken stock?
The company is majority owned by its founders Dave Kopushyan, Arman Oganesyan, Tommy Rubenyan and Gary Rubenyan. It also counts rapper Drake among its investors.