Just eight years after it began in a Los Angeles car park, Dave’s Hot Chicken was acquired by private equity firm Rourke Capital in a deal worth around $1 billion to enter the “next phase of growth and innovation.”
Dave’s Hot Chicken spokesman confirmed his acquisition of USA Today in an email on Wednesday, June 4th.
Started in 2017 by three childhood friends in a Los Angeles parking lot, the chain offers mainly chicken bids and chicken sandwiches, and expects to finish the year in more than 400 locations around the world. The company said it will sell rights to more than 1,000 franchise locations in the US, the Middle East and Canada, and will open more than 155 locations this year.
“This was one of the great entrepreneurial journeys of our time, and now we’re beginning the next chapter of the story,” Bill Phelps, CEO of Dave’s Hot Chicken, said in a news release. “Our entire organization is excited by the suitability between Dave’s hot chicken and Roark. We look forward to blowing the minds of our guests and unleashing the growth and value of our franchise partners.”
According to a report from CNBC, Phelps, who previously led Wetzel pretzels for 25 years, joined Dave in 2019, less than two years after its founding. Phelps said business news outlet Dave could reach up to 4,000 locations worldwide over the next decade.
Dave’s leadership team continues to drive the company’s “menu innovation, food quality, in-store experience, operations, marketing, branding, digital and more,” according to a news release.
What is Roark?
According to the acquisition announcement, Roark is an Atlanta-based private equity company that manages $40 billion in stake.
The company has several well-known brands in its restaurant and food industry, including Buffalo Wild Wings, Irby, Dunkin, Jimmy Johns, and Sonic.
The company acquired Sandwich Giant Subway in 2023 for nearly $10 billion. This was one of the biggest fast food acquisitions to date.
Gabe Hauari is a national trending news reporter for USA Today. You can follow him with X @geuna Alternatively, email him at gdhauari@gannett.com.
