Hey there, chicken lovers! Today I’m gonna tell you about one of the most incredible rags-to-riches stories in the restaurant biz. If you’ve been wondering how much Dave’s Hot Chicken is worth prepare to have your mind blown – this parking lot pop-up is now valued at a whopping $1 BILLION! Yep you read that right. Let’s dive into this crazy success story that’s hotter than their spiciest chicken!
The Humble Beginnings: Just $900 and a Dream
Back in 2017, four friends with barely any restaurant experience decided to start selling Nashville hot chicken in an East Hollywood parking lot. The founders included:
- Arman Oganesyan (a 24-year-old stand-up comedian making $50 a night)
- Dave Kopushyan (a chef who had worked at Michelin-starred restaurants)
- Tommy Rubenyan (the only friend willing to invest)
- Gary Rubenyan (Tommy’s brother who joined later)
What’s truly incredible is that they launched this venture with just $900 in pooled savings! They couldn’t even afford a food truck, so they set up in a parking lot with
- A $150 fryer
- A heat lamp for fries
- Tables borrowed from their parents
Oganesyan, who was actually a high school dropout but a “marketing genius” according to current CEO Bill Phelps, had to convince his chef friend Kopushyan to get on board. Kopushyan initially wasn’t enthusiastic, saying, “Chicken? First of all, I don’t even like chicken.”
The Recipe for Success: Pickle Juice and Persistence
The friends spent months perfecting their Nashville hot chicken recipe by
- Eating at various fried chicken joints
- Watching documentaries on chicken
- Experimenting in Kopushyan’s kitchen
They had some wild ideas during this process – they even considered using gummy bears in the recipe! But one of their best discoveries came by accident when they tossed leftover chicken into a nearly-empty pickle jar and realized pickle juice made an excellent brine.
As Oganesyan described it, creating Dave’s Hot Chicken was “a lot of belief with a lot of doubt.”
From First Sale to First Boom
Their first night of business was hardly promising. They made just $40 from four meals sold to Oganesyan’s girlfriend and three of her friends. But everything changed just five days later when they caught the attention of former Eater Los Angeles food critic Farley Elliott through word of mouth.
After that review, business exploded! Within a few months, they were:
- Selling out nightly
- Making “a few thousand” dollars every night
- Taking home around $10,000 each at the end of their second month
For Oganesyan, this was “the most money I’d ever seen in my life.”
Going Legit: From Pop-Up to Permanent
A year after their parking lot debut, the team brought in Tommy’s brother, Gary Rubenyan, who helped them open their first permanent storefront. This tiny East Hollywood location reportedly generated over $5 million in sales in its first year alone!
Their social media strategy was crucial to their early success. Instagram became their primary marketing tool, along with collaborations with celebrities like Drake. The photogenic food and unique brand identity resonated across demographics.
The Big Investment: Celebrity Backers
In 2019, Dave’s Hot Chicken attracted some serious attention. An investor group bought a stake in the company with plans to franchise the brand. This group included some major names:
- Bill Phelps (who became CEO)
- Samuel L. Jackson (actor)
- Michael Strahan (Good Morning America anchor and former NFL player)
- John Davis (movie producer)
- Tom Werner (Red Sox owner)
Under Phelps’ leadership, the brand expanded nationally and internationally, adding locations in:
- Canada
- The United Kingdom
- The Middle East
Explosive Growth: The Numbers Don’t Lie
The growth of Dave’s Hot Chicken has been nothing short of remarkable:
- 2017: 1 pop-up stand
- 2022: Approximately 100 stores
- 2025: More than 300 locations worldwide
In terms of sales:
- 2024: $600 million in systemwide sales in the U.S. (up 57% from the previous year)
- 2025 (projected): $1.2 billion in sales
According to Jim Bitticks, president and COO of Dave’s, the company is currently “extremely” profitable both at the franchise level and in its corporate operations.
The Billion-Dollar Deal: Roark Capital’s Investment
In June 2025, private equity firm Roark Capital bought a majority stake (75%) in Dave’s Hot Chicken in a deal worth “pretty close” to $1 billion, according to CEO Bill Phelps on CNBC’s “Squawk Box.”
Roark Capital, which is behind other restaurant chains like Arby’s and Buffalo Wild Wings, beat out several suitors for the emerging brand. The acquisition was a perfect timing move, with Phelps stating, “We were at an inflection point where we could get an incredible valuation, and yet there was still significant upside for Roark.”
The Founders’ Payday
The four cofounders each owned around 10% of Dave’s before the acquisition. By selling 80% of their stakes in the Roark deal, they collectively netted over $300 million! Not bad for an initial investment of $900, right?
While the financial terms weren’t fully disclosed, we know that Oganesyan, Kopushyan, the Rubenyan brothers, and Phelps all retained minority stakes in the company and will continue in their current roles.
What Does It Cost to Join the Hot Chicken Empire?
If you’re thinking about getting in on this hot chicken action as a franchisee, be prepared to make a significant investment:
The total investment required to open a Dave’s Hot Chicken franchise ranges from $619,800 to $1,963,000. This includes:
- Franchise fee
- Construction costs
- Equipment purchases
- Initial inventory
Why Dave’s Hot Chicken Succeeded Where Others Failed
Several key factors contributed to Dave’s runaway success:
1. Lean startup model
By bootstrapping their initial parking lot popup with just $900, Dave’s validated demand before taking on significant overhead. This allowed for quick scaling once they knew people loved their product.
2. Cult following
Dave’s built a devoted fan base on Instagram and TikTok. User-generated social content expanded awareness and created authentic buzz.
3. Disciplined franchising
Under their experienced leadership team, Dave’s strategically expanded its store count threefold in just three years.
4. Distinct brand identity
The founders gave Dave’s a strong identity rooted in its LA origins and spicy menu, which resonated across demographics.
5. Perfect market timing
Dave’s tapped into the rising popularity and menu diversity in the chicken category. Their Nashville hot chicken filled a niche that wasn’t being served in many markets.
What’s Next for Dave’s Hot Chicken?
With Roark Capital’s investment, Dave’s faces high growth expectations. The private equity firm brings operational expertise that could help optimize:
- Supply chain management
- Delivery services
- Marketing strategies
International expansion and ghost kitchens could fuel continued growth. While they’re competing in a crowded market, Dave’s proven model and leadership continuity position it for sustained success.
The billion-dollar valuation reflects belief in Dave’s staying power. At eight times projected sales, the valuation shows investor confidence in the brand’s long-term profitability.
Lessons for Entrepreneurs
The Dave’s Hot Chicken story offers some valuable lessons for aspiring business owners:
- You don’t need a huge investment to start something big
- Find a niche that’s underserved but has potential
- Perfect your product before scaling
- Leverage social media to build authentic connections
- Be willing to bring in expertise when it’s time to grow
From a dirty parking lot where they sold just $40 worth of food on their first day to a $1 billion valuation eight years later, Dave’s Hot Chicken has proved that with the right recipe (both literally and figuratively), amazing things can happen.
The combination of scrappy beginnings, an incredible product, smart marketing, and strategic growth has created one of the most remarkable success stories in the restaurant industry. The $1 billion valuation isn’t just about current performance—it’s a bet on the future potential of this fast-growing brand.
So if you’re wondering how much Dave’s Hot Chicken is worth, there’s your answer: $1 billion and still rising! Not bad for a business that started with less money than most people spend on a month’s worth of groceries.
Have you tried Dave’s Hot Chicken yet? If not, maybe it’s time to see what all the billion-dollar buzz is about! And remember, sometimes the craziest ideas—like selling spicy chicken out of a parking lot—turn out to be the most brilliant.
‘It’s not called Dave’s Mild Chicken’
When not working shifts at Echo Park vegetarian restaurant Elf Cafe, Kopushyan toiled in his home kitchen with spice blends for 4½ months, obsessively tinkering with breading, seasoning and frying.
The three friends ate it every day, tasting and discussing each batch in Kopushyan’s Hollywood apartment. He wanted to steer the pop-up in a cheffier direction, incorporating their own house-made bread and pickles, while Oganesyan wanted something more tailored to his own “simple palate.” Eventually, they found a compromise.
The recipes, however, remain secret.
They scraped together about $900: $315 Oganesyan had saved, $300 from Kopushyan’s most recent Elf Cafe paycheck, and another $300 from Rubenyan. Advertisement
When the trio deemed their product ready, Rubenyan’s parents spotted an opportunity: Across the street from their East Hollywood flower shop sat a vacant lot. They knew the landlords, who gave the trio their blessing to use the space. The plan was simple: pop up for roughly a year, then spring for a food truck and slowly grow the operation into a bricks-and-mortar.
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Things moved at a much faster pace than any of them imagined.
Dave’s Hot Chicken debuted in May 2017, running Monday to Saturday, informally, in the parking lot.
“If we got shut down, we got shut down; back to square one,” Oganesyan said of the business plan. Fortunately for them, it never happened.
As word of mouth spread, curious customers lined up for meals that included two tenders with fries, slaw and slices of white bread, nearly identical to what the chain offers today. A few weeks later, the team added sandwiches.
Eventually they would expand the spice-level offerings from the simple choice of mild or hot to today’s seven options, ranging from no spice to reaper. “We always tell people to get hot, because it’s not called Dave’s Mild Chicken,” Oganesyan said.
The chicken — sourced from Wayne Farms — has been halal from Day 1, not due to religious preferences but to quality, a choice they said contributed to the seamless expansion into the United Arab Emirates. Advertisement
The early days were hectic, according to its owners, who said they were “working against the elements” with far too many customers than they were prepared for.
An early article from Eater LA multiplied the lines overnight, with 60 to 90 guests waiting for at least an hour. Instagram and TikTok fueled the demand, creating more buzz and a flurry of parking-lot imitators across the city. Within a few months, the trio realized they’d need to ride the hot chicken wave and expand earlier than planned.
Rubenyan’s brother, Gary, became a partner, which allowed them to launch their first restaurant, a corner space in a strip mall on Western Avenue. They invited their friends to scrawl spray-painted phrases and sketches across the walls, an aesthetic now seen in Dave’s locations around the world.
Flying the L.A. coop
Soon after launching their first storefront, investors John Davis and Bill Phelps entered the picture.
Davis, a prolific movie and TV producer, had his hand in a number of fast-casual restaurants. He’d helped incubate and grow businesses such as Blaze Pizza and Wetzel’s Pretzels with his business partner, Phelps. Advertisement
In 2018, Dave’s founders sold half of the company to Davis and Phelps, and tapped the latter as chief executive; the company launched the second Dave’s in 2019, quickly followed by a half-dozen more. Franchises spread into San Diego and Orange County, then Canada, across the U.S. and into the United Arab Emirates and London. Lines at openings still routinely wrap around the block, eight years into business.
“I’ve been doing the restaurant industry since I was 15 years old — I’m 51 years old now, and I’ve never seen anything like Dave’s or the fandom around it,” said Jim Bitticks, Dave’s president and chief operating officer.
Bitticks joined Dave’s after the company’s fourth restaurant and had worked with Phelps and Davis at Blaze Pizza. The companies’ franchise and expansion plans, he said, are similar: Roughly 99% of the restaurants should be franchise-owned-and-operated, with a few company-helmed restaurants to staff training teams, which then help open new franchise locations around the world.
The four founders still own and operate seven locations, including the first restaurant and three others in L.A., plus three in Las Vegas. They see themselves as a kind of In-N-Out for Nashville hot chicken — but with a globe-spanning reach.
Within two years of Dave’s partnership with Phelps and Davis numerous celebrities signed on as investors, including Drake, Samuel L. Jackson and Maria Shriver. Advertisement
“It was great, but I emphasized to everybody that celebrities are not going to make or break your brand,” Oganesyan said. “If your food can’t stand on its own two feet, then it doesn’t matter if the pope endorses you, nobody’s gonna care.”
Everything I Order at Dave’s Hot Chicken! #daveshotchicken #daves #hotchicken
FAQ
How much is Dave’s hot chicken worth?
Now Dave’s Hot Chicken is worth $1 billion. This year, the modern specialist in the decades-old spicy fried chicken style that originated in Nashville became one of L.A.’s most astounding small-business success stories. The chain currently operates about 320 storefronts, with 800 more planned.
How did Dave’s hot chicken become a $1 billion business?
The chain’s CEO says ‘grit’ and ‘luck’ took it from a $900 small business to a $1 billion empire Greg McKenna is a news fellow at Fortune. Dave’s Hot Chicken now has over 300 locations around the world. The founders of Dave’s Hot Chicken sold just $40 worth of food on their first day in a dirty parking lot.
Who owns Dave’s hot chicken?
On Monday, private equity firm Roark Capital bought a majority stake in Dave’s Hot Chicken, which is now a franchise business with more than 300 locations, in a deal worth “pretty close” to $1 billion, Dave’s CEO Bill Phelps said on CNBC’s “Squawk Box.” “It’s insane what we did,” Phelps said. “The vision of these guys was just great.
How much did Dave’s hot chicken sell in 2025?
Between 2018 and 2025, Dave’s Hot Chicken expanded to more than 300 stores across the United States and several international markets. The company projects 2025 systemwide sales to reach $1.2 billion. This figure underpins the eight-times revenue multiple used in the $1 billion acquisition valuation.
How much money does Drake make from Dave’s hot chicken?
Drake jumped into the Dave’s Hot Chicken game in 2021, snagging a major stake alongside other big names like Samuel L. Jackson. While exact figures remain under wraps, rumors swirling on social media suggest his share was between 25% and 35%, potentially netting him anywhere from $100 million to $300 million from the $1 billion sale.
How many Dave’s hot chicken stores are there?
This year, the modern specialist in the decades-old spicy fried chicken style that originated in Nashville became one of L.A.’s most astounding small-business success stories. The chain currently operates about 320 storefronts, with 800 more planned. Dave’s Hot Chicken has opened as many as five new locations in a day.
How much is Dave’s Hot Chicken company worth?
Now Dave’s Hot Chicken is worth $1 billion. This year, the modern specialist in the decades-old spicy fried chicken style that originated in Nashville became one of L.A.’s most astounding small-business success stories. The chain currently operates about 320 storefronts, with 800 more planned.
How much was Dave’s Hot Chicken bought for?
How much does it cost to own Dave’s Hot Chicken?
The cost to invest in a Dave’s Hot Chicken franchise varies, but the initial investment typically ranges from $620,000 to $1.96 million, depending on the …
How much is Dave’s hot chicken stock?
With Dave stock trading at $195.59 per share, the total value of Dave stock (market capitalization) is $2.64B. Dave stock was originally listed at a price of $321.60 in Mar 5, 2021.