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In 2017, a modest food stand in East Hollywood began selling hot chicken out of a parking lot with a budget of just $900. That experiment, born out of a craving and curiosity, evolved into Dave’s Hot Chicken, one of the most compelling growth stories in the fast-casual restaurant sector. The founders, chef Dave Kopushyan and three friends, didn’t have any corporate support and just had an Instagram account and a spicy menu. Eight years later, Roark Capital became interested in the brand. In June 2025, they bought a 75% stake in the company for a price of $1 billion.
Dave’s Hot Chicken has become one of the hottest new fast-casual restaurants. The brand’s rise from a humble $900 pop-up in a parking lot to a billion-dollar valuation by a major private equity firm is an amazing success story. Here’s a look at how a scrappy chicken idea turned into one of America’s most talked-about restaurant chains.
Bootstrapped Beginnings
Arman Oganesyan, Dave Kopushyan, Tommy and Gary Rubenyan, and a fifth friend from childhood opened a pop-up shop in an East Hollywood parking lot in 2017 with only $900. Even though Oganesyan had never worked in a restaurant before, he talked chef Kopushyan into selling Nashville hot chicken with him. After getting their famous spicy chicken recipe just right, they opened for business.
Within days, word spread on social media and lines stretched around the block. The operation was bare bones – just a fryer, a heat lamp, and some borrowed furniture – but the food resonated with locals. A rave review from LA food blog Eater five days in catalyzed Dave’s meteoric rise.
Cult Following to Commercial Enterprise
In late 2017, Dave’s opened its first permanent location in East Hollywood. The tiny store generated over $5 million in sales that first year off the power of its viral food and digital marketing. Instagram was core to Dave’s success, along with collaborations with celebrities like rapper Drake.
Dave’s heated growth continued through franchising and branch expansion. In 2017, they only had one store. By 2025, they had 300 stores in the US and other countries. 2025 systemwide sales are projected to surpass $1. 2 billion.
A Billion-Dollar Brand Attracts Private Equity
In June 2025, Dave’s Hot Chicken announced the sale of a 70% stake to Roark Capital at a $1 billion valuation. Roark, the private equity firm behind Arby’s, Buffalo Wild Wings and other restaurants, beat out several suitors for the emerging brand.
The founders and early investors scored big paydays from the deal. The four cofounders each owned around 10% of Dave’s before the acquisition. They collectively netted over $300 million by selling 80% of their stakes. Early backers like actor Samuel L. Jackson and producers John Davis and Bill Phelps earned huge multiples on their investments.
Key Factors in Dave’s Runaway Success
Lean startup model – By bootstrapping the initial parking lot popup, Dave’s validated demand before taking on significant overhead. This allowed quick scaling.
Cult following: Dave has built a group of devoted fans on Instagram and TikTok. User-generated social content expanded awareness.
Disciplined franchising – Under an experienced leadership team, Dave’s strategically expanded its store count threefold from 100 in 2022 to over 300 by 2025.
Distinct brand – The founders gave Dave’s a strong identity rooted in its LA origins and spicy menu. This resonated across demographics.
Market timing – Dave’s tapped into rising popularity and menu diversity in the chicken category. Their Nashville hot chicken filled a niche.
The Road Ahead
Dave’s faces high growth expectations from investors after its acquisition. Roark brings operational expertise to optimize supply chain management, delivery, and marketing. International expansion and ghost kitchens could fuel continued expansion. While competing in a crowded market, Dave’s proven model and leadership continuity position it for sustained success.
The billion-dollar valuation reflects belief in Dave’s staying power. By combining scrappiness with strategic franchising, the brand has found the recipe for fast casual stardom. For entrepreneurs, Dave’s journey shows how creativity, customer experience, and calculated risks can transform small ideas into big business.
Bootstrapped beginnings met with overwhelming demand
The $900 that seeded Dave’s Hot Chicken paid for ingredients and a fryer. Within days, the stand was drawing long queues. Their signature Nashville-style hot chicken spread quickly through Instagram and local buzz.
By late 2017, the founders opened their first permanent location. The store’s success was immediate and reinforced by a tight digital strategy. Their approach was not groundbreaking, it was timely, experience-focused, and built around photogenic food.
Roark Capital’s bet on scalable spice
Roark Capital’s investment highlights broader trends in private equity interest in franchise-ready restaurant brands. The Atlanta-based firm owns stakes in Arby’s, Buffalo Wild Wings, and Dunkin’. Dave’s Hot Chicken joins this portfolio with a growth runway that includes international opportunities and digital loyalty potential.
At eight times projected sales, the valuation reflects investor confidence in the brand’s long-term profitability. Roark has operational knowledge that could improve the efficiency of the supply chain, increase the number of third-party delivery deals, and help with co-branded campaigns or “ghost kitchen” rollouts.
Is Dave’s Hot Chicken Worth The Hype?
FAQ
How much is Dave’s Hot Chicken Company worth?
Dave’s Hot Chicken now has over 300 locations around the world. The founders of Dave’s Hot Chicken sold just $40 worth of food on their first day in a dirty parking lot. After eight years of perseverance and luck, the company has been acquired by private equity firm Roark Capital at a reported $1 billion valuation.
How much is Dave’s chicken worth?
A private equity firm called Roark Capital bought a majority stake in Dave’s Hot Chicken on Monday. The deal was “pretty close” to $1 billion, according to Bill Phelps, CEO of Dave’s, who talked about it on CNBC’s “Squawk Box.” ” “It’s insane what we did,” Phelps said.
Did Dave’s Hot Chicken sell for a billion?
Dave’s Hot Chicken was acquired by Roark Capital for approximately $1 billion. CNBC reports that the private equity firm bought a majority stake in the fast-growing chicken chain as part of the deal that just closed.
How much is Dave’s Hot Chicken franchise?
The total investment required to open a Dave’s Hot Chicken franchise ranges from $619,800 to $1,963,000. This includes the franchise fee, construction costs, equipment purchases, and initial inventory.