The owner of the California restaurant, Scott Rodrick, discusses the impact of inflation, labor costs and other challenges for the fast food industry on “Maria Bartiromo’s Wall Street”.
Roark Capital, the investment capital company which bought established franchises, acquired Dave’s Hot Chicken in an agreement of $ 1 billion which will feed the expansion of the restaurant of the chicken chain.
Dave’s hot chicken said Roark’s investment will help the company when it is entering its next growth phase worldwide while it plans to open more than 155 locations this year.
The company currently has more than 300 locations, but it expects this figure to exceed 400 by the end of the year.
Subway joins Dunkin ‘, Jimmy John’s, Buffalo Wild Wings in the Roark Capital stable
The company was founded by three childhood friends in 2017. With only $ 900, the trio launched Dave’s Hot Chicken in a parking lot using laptops and folding tables. Shortly after, they opened their first brick and mortar restaurant.
A plan of hot chicken sandwiches in Dave. (Dave hot chicken)
In 2019, they concluded an agreement with the former PRETZELS CEO of Wetzel, Bill Phelps, to start franchising the concept of Dave hot chicken.
The company has sold rights to more than 1,000 franchise locations in the United States, the Middle East and Canada.
Subway accepts the sale to Roark Capital, ending nearly 6 decades of family ownership
“This is one of the great entrepreneurial trips of our time, and now we are starting the next chapter in history,” said Phelps, now CEO of Dave’s Hot Chicken.
A view of a hot chicken restaurant in Dave on February 26, 2025 in Rosemead, California. (Mario Tama / Getty Images / Getty Images)
Roark, based in Atlanta, with 40 billion dollars of assets under management, is already announced in restaurant space after acquiring Arby and Culver, followed by Subway in 2024. He also invests in Goto Foods and the American fast food franchise Inspire Inspire Brands.
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Inspire Brands is the parent company of Arby’s, Dunkin ‘, Jimmy John’s, Sonic and Buffalo Wild Wings. Goto Foods has Aunt Anne, Carvel, Cinnabon and Jamba.
