Subway’s Parent Roark Capital Buys Dave’s Hot Chicken in $1B Power Move
Have you heard the big news shaking up the fast food world? Roark Capital—the powerhouse private equity firm that owns Subway—just dropped a massive $1 billion to acquire Dave’s Hot Chicken. Yeah, you heard that right. The same folks behind Arby’s, Dunkin’, Jimmy John’s, and Buffalo Wild Wings are now adding some serious heat to their portfolio with one of the fastest-growing fried chicken brands in the game.
This is more than just another big buyout. It's a bold move that signals Roark’s intent to double down on fast-casual food and take it global. And honestly, Dave’s Hot Chicken is the perfect target for that. If you don’t know the backstory, it’s pretty inspirational. Back in 2017, three childhood friends scraped together just $900 to start a popup in a parking lot in Los Angeles. We're talking portable fryers, folding tables—true underdog beginnings. Fast forward to now, and they’ve got over 300 locations and counting.
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With Roark now behind them, the brand is on track to open over 155 new restaurants just this year. They’ve already sold franchise rights for more than 1,000 spots across the U.S., Canada, and the Middle East. That’s a whole lot of spicy chicken sandwiches heading your way soon.
What’s also interesting is the timing. While Dave’s is surging, Subway is dealing with its own struggles. In 2024 alone, they lost over 600 locations—dropping below 20,000 stores for the first time in two decades. It's a stark reminder that even the biggest names have to evolve. Roark seems to be hedging their bets with hotter, fresher brands like Dave’s that are resonating with younger crowds and foodies alike.
CEO Bill Phelps, who helped turn Wetzel’s Pretzels into a franchising giant, is steering the ship at Dave’s now. And with big-name investors like Drake and Michael Strahan already backing it, you know there’s momentum. Roark’s injection of capital just lights an even bigger fire under what was already one of the fastest-growing food brands out there.
So yeah, this isn’t just a big acquisition. It’s a statement. Roark is building a food empire, and Dave’s Hot Chicken is their latest rising star. Whether you're a fan of their Nashville-style spice or just love a good business success story, this move is one to watch.
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