Common fried hen chain acquired by personal fairness agency in $1B deal

California restaurant proprietor Scott Rodrick discusses the impression of inflation, labor prices and different challenges for the quick meals business on ‘Maria Bartiromo’s Wall Road.’ 

Roark Capital, the personal fairness agency that is been shopping for up established franchises, acquired Dave’s Scorching Hen in a $1 billion deal that can gas the hen chain’s restaurant growth. 

Dave’s Scorching Hen stated the funding from Roark will help the corporate because it enters its subsequent section of development across the globe because it plans to open greater than 155 areas this 12 months.

The corporate at the moment has over 300 areas, but it surely expects that determine to surpass 400 by the top of the 12 months.  

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The corporate was based by three childhood pals in 2017. With solely $900, the trio launched Dave’s Scorching Hen in a car parking zone utilizing moveable fryers and folding tables. Shortly after, they opened their first brick-and-mortar restaurant. 

A shot of Dave’s Scorching Hen sandwiches.  (Dave’s Scorching Hen)

In 2019, they struck a cope with Wetzel’s Pretzels’ former CEO Invoice Phelps to start franchising the Dave’s Scorching Hen idea.

The corporate has offered the rights to greater than 1,000 franchise areas within the U.S., Center East and Canada. 

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“This is one of the great entrepreneurial journeys of our time, and now we begin the next chapter in the story,” stated Phelps, now Dave’s Scorching Hen’s CEO. 

A view of a Dave’s Scorching Hen restaurant on February 26, 2025 in Rosemead, California.  (Mario Tama/Getty Pictures / Getty Pictures)

Atlanta-based Roark, with $40 billion in property underneath administration, already has a foothold within the restaurant area after buying Arby’s and Culver’s, adopted by Subway in 2024. It additionally invests in GoTo Meals and American fast-food restaurant franchise firm Encourage Manufacturers. 

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Encourage Manufacturers is the mum or dad firm of Arby’s, Dunkin’, Jimmy John’s, Sonic and Buffalo Wild Wings. GoTo Meals owns Auntie Anne’s, Carvel, Cinnabon and Jamba.