Topline:
Dave’s Hot Chicken announced on Monday that it was being acquired by private equity firm Roark Capital in a deal valued at around $1 billion. The chain was started by four childhood friends in an L.A. parking lot in 2017.
Why it matters: Because the chicken is impossibly addictive, and yes, the three (later four) young founders pulled together $900 in 2017 to set up in a parking lot in L.A. with folding tables, portable fryers and coolers. This is a true rags to riches story people (with investments from celebrities like Drake and Samuel L. Jackson along the way).
Why now: With more than 300 stores in the U.S., and more internationally, the chain certainly looks prime for further expansion.
Angelenos may be feeling a stab of hometown pride for the once-scrappy young founders of Dave’s Hot Chicken, which announced on Monday that it was being acquired by private equity firm Roark Capital in a deal valued at around $1 billion.
(The actual number was not disclosed, but Dave’s Hot Chicken CEO Bill Phelps told CNBC it was “pretty close.")
The story is fairly well-known: in 2017, three young friends got together (Dave Kopushyan, the Dave of the operation, Arman Oganesyan and Tommy Rubenyan, later joined by brother Gary), spent $900 to set up a food stand in a parking lot in L.A. with portable fryers, folding tables and coolers.
Using their own specially-created recipe, they made some great tasting hot chicken… so good that Eater L.A. ran a story headlined “East Hollywood’s New Late-Night Hot Chicken Stand Might Blow Your Mind”.
The lines showed up the next day and never stopped.
In time, high profile celebrities like Drake and Samuel L. Jackson came in as investors, and there’s now more than 300 restaurants in the U.S., with locations also in the Middle East and Europe. One can imagine there may be many more around the world some time soon.
We salute you, our homegrown heroes. Even with an addictive product, that’s a sizzling deal to pull off.
