Subway owner buys chicken chain
FILE - Dave's No. 1 with two tenders (extra hot) and fries at Dave's Hot Chicken. (Photo by Deb Lindsey for The Washington Post via Getty Images).
A popular new chicken chain said this week that it had been acquired by a private equity firm.
Subway owner buys chicken chain
Big picture view:
Dave’s Hot Chicken said Monday it has been acquired by private equity firm Roark Capital in a deal valued at $1 billion.
Dig deeper:
Atlanta-based Roark specializes in franchised businesses, and recently bought the Subway sandwich chain in 2023, the Associated Press reported.
Meanwhile:
Roark Capital also backs two holding companies that own multiple restaurant chains, including:
- Inspire Brands, the parent Arby’s, Dunkin’, Jimmy John’s, Sonic and Buffalo Wild Wings
- GoToFoods, which owns Auntie Anne’s, Carvel, Cinnabon and Jamba
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Dave’s Hot Chicken
The backstory:
Dave's Hot Chicken got its start in 2017 as a popup in a Los Angeles parking lot.
With only $900, a group of childhood friends launched Dave’s Hot Chicken in a parking lot using portable fryers and folding tables, according to FOX Business. Shortly after, they opened their first brick-and-mortar restaurant.
The brand specializes in Nashville-style hot chicken.
By the numbers:
The restaurant has grown exponentially since 2017 and expects to end this year with 400 restaurants worldwide.
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What they're saying:
Dave’s Hot Chicken said its leadership team will remain and continue to lead menu innovation, food quality, operations and marketing.
The Source: Information in this article was taken from statements made by Dave’s Hot Chicken, as reported by The Associated Press and FOX Business. Background information about Roark Capital and Dave’s Hot Chicken was taken from both sources. This story was reported from Detroit.