Three buddies with a fryer, a folding table, and a dream just cashed in as private‑equity giant Roark Capital snaps up a majority stake in Dave’s Hot Chicken for almost $1 billion.
Arman Oganesyan, Dave Kopushyan, and Tommy Rubenyan were unknowns in 2017. Today, their Nashville‑style tenders are served in more than 300 shops worldwide—and the trio’s gamble has become one of the fattest paydays in fast‑casual history.
From $900 pop‑up to a 300‑location powerhouse attracting billion‑dollar investors
Ever wondered how far $900 can really take you? For these childhood friends, it covered a used fryer, a heat lamp, and a night’s rent in an East Hollywood parking lot. Sales the first night: four meals, $40. Yet five days later an Eater LA critic stopped by, and lines began to snake around the block. Early hustle that kept the lights on:
- Mixing brines in a home kitchen and testing “crazy” ideas like gummy‑bear glaze
- Borrowing parents’ patio tables for makeshift seating
- Paying themselves only after month two, when nightly revenue topped “a few thousand” dollars
The pop‑up’s lightning rise is easier to see in hindsight:
| Year | Milestone |
|---|---|
| 2017 | Parking‑lot debut; first viral review |
| 2018 | Consistent sell‑outs spark hunt for brick‑and‑mortar site |
| 2019 | Investor group led by veteran CEO Bill Phelps buys in; franchising model launched |
| 2024 | Systemwide sales top $600 million |
| 2025 | Roark Capital acquires majority stake, valuing chain near $1 billion |
The chain now stretches across the United States, Canada, the U.K., and the Middle East—no food truck required.
What Roark Capital’s near‑billion‑dollar stake signals for fast‑casual dining market
Deals of this size rarely land in the chicken‑tender niche, so competitors are paying attention. Roark, which already backs Dunkin’, Arby’s, and Buffalo Wild Wings, is betting that spicy tenders travel well, command premium prices, and fuel rapid franchise expansion. Could the next wave of growth come from stadium kiosks or college campuses? Stay tuned—Roark says “significant upside” remains.
Key lessons aspiring food entrepreneurs can learn from Dave’s Hot Chicken story
First‑time founders often ask, “Do I need big money to start?” Here’s what this trio’s journey suggests:
- Start scrappy, iterate fast. A $150 fryer and a bold recipe beat perfect décor.
- Leverage free marketing. Word‑of‑mouth and striking social photos fueled early buzz.
- Bring in strategic capital, not just cash. Phelps’s operating know‑how unlocked franchising discipline.
- Stay close to the brand. The founders kept minority stakes and creative control after the sale.
Dave’s Hot Chicken proves that resourcefulness, media savvy, and a crowd‑pleasing menu can catapult a sidewalk stand into a global phenom. For would‑be restaurateurs, the message is clear: test the idea cheaply, build a loyal following, and be ready when opportunity knocks—because the next knock might carry a nine‑figure check.