Good morning. Fast-casual restaurant Dave’s Hot Chicken began as a $900 pop-up in a Los Angeles parking lot in 2017. Eight years later, the brand has expanded to over 345 stores worldwide—a remarkable rise from seven locations in early 2020. On Oct. 1, the company announced a partnership with Matternet to launch its first drone-delivery pilot in a Los Angeles suburb, following its entry into the billion-dollar club.
Known for its Nashville-style hot chicken, Dave’s attracted Atlanta-based private equity firm Roark Capital, which specializes in franchised businesses and acquired Subway in 2023. Roark owns two major restaurant holding companies: Inspire Brands (Dunkin’, Buffalo Wild Wings, Sonic) and GoTo Foods (Auntie Anne’s, Carvel, Cinnabon). Dave’s Hot Chicken was acquired by Roark this past summer for $1 billion and expects to reach 400 stores this year.
Founded by childhood friends Dave Kopushyan, Arman Oganesyan, and Tommy Rubenyan, the company has been led by Bill Phelps, co-founder of Wetzel’s Pretzels, as CEO since 2019. James McGehee joined as CFO in 2019 after connecting with the team through Wetzel’s. “I’ve been in the restaurant industry and accounting and finance since 1993, but I fell in love with food first,” McGehee told me.
