Dave’s Hot Chicken just got scooped up in a $1 billion deal.
The fast-growing Nashville-style chicken chain announced Monday that it’s been acquired by Roark Capital, the private equity firm best known for owning Subway and a long list of other fast-food giants.
The brand, which started in 2017 as a parking lot pop-up in Los Angeles, has skyrocketed in popularity thanks to its crispy sliders, spice levels, and cult following.
So much so that by the end of the year, Dave’s expects to have 400 restaurants open around the globe.
But with Roark Capital now in control, some fans are worried that things are about to change.
The firm, based in Atlanta, has made a name for itself acquiring and franchising major food chains such as Inspire Brands, which controls Arby’s, Dunkin’, Sonic, and Buffalo Wild Wings, as well as GoTo Foods, the company behind Auntie Anne’s, Jamba, and Cinnabon.
Dave’s says it’s business as usual
For now, Dave’s says its leadership team is staying put. CEO Bill Phelps and the original four founders—who started the business as childhood friends—will continue overseeing everything from the menu to marketing.
“Our entire organization is excited about the fit between Dave’s Hot Chicken and Roark,” Phelps said in a statement. “We’re looking forward to continuing to blow our guests’ minds and unlocking growth and value for our franchise partners.”
Still, fans on Reddit aren’t feeling very reassured
Under a post on r/fastfood about the news, one person wasn’t very optimistic.
“Well, Dave’s hot chicken is gonna go to the dumps,” they wrote.
“Kinda crazy they’re at the front of this huge expansion opening stores every week all over the country and then sold,” someone else added. “But that’s every startup’s / small business owner’s goal.”
“So, increased prices and decreased quality are in the future?! Score!” wrote a third sarcastically.
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