You can thank the COVID-19 shutdown for Houston TX Hot Chicken.
The fast-casual hot chicken chain was born in 2020, while the world was on lockdown. Co-founder Edmond Barseghian, a race car driver, had moved back with his mother and sister.
Barseghian’s sister knew he loved hot chicken, a concept that was taking off in Los Angeles, in particular. She started playing around with some recipes and created a style of hot chicken that Barseghian loved.
Barseghian had never opened a restaurant, but he was a serial entrepreneur, said Brian Simowitz, Houston TX Hot Chicken’s president.
“Edmond started thinking about, ‘Could I turn this into a concept?’” Simowitz said. “He started looking on the map to see where some of our competitors were located, and he noticed there were really no players in the hot chicken segment in Las Vegas.”
So Barseghian moved there and began looking for a location to launch the brand. The first Houston TX Hot Chicken opened in 2021.
Though the home base remains a company-owned market, Houston TX began franchising and growth took off. Last year, the chain grew sales more than 105% to $28.2 million with 25 units. Unit growth grew nearly 80%.
In 2023, the private-equity firm Savory Fund invested in the brand, which has helped provide capital but also a backbone of infrastructure, from supply chain to construction management.
By the end of 2025, the chain expects to reach about 34 units, with another 15 to 20 on deck to open next year, Simowitz said.
“After 2026, our goal is that we’re opening up about 50 to 60 restaurants per year, and we’re actively building our pipeline of qualified franchisees at this time to help us with that growth,” he said.
The fast-casual chicken space is increasingly crowded.
Category leader Dave’s Hot Chicken this year was acquired by Roark Capital in a deal valued at $1 billion. That franchised brand has more than 300 restaurants and is growing at a rapid clip.
Simowitz argues that Houston TX stands out for its superior product.
“I know Dave’s has a big head start on us, and they have quite a few more units than we do at this time,” he said. “But the true differentiators for us are, No. 1, the product. Our product is, I think, one of the best out there.”
Like Dave’s, Houston TX offers tenders with varying spice levels, from “no spice” to the super-spicy “Houston, We Have a Problem,” which requires guests to sign a waiver.
The menu at Houston TX is also a bit broader, with salads and chicken and waffles. (On a not-so-secret, secret menu, guests can make chicken sandwiches with waffles.)
Simowitz said the brand is also looking to go overseas in time. Barseghian was raised in Sweden and competes in European racing circuits. The co-founder also has a rabid following on social media, which helps boost brand awareness for the chicken chain.
“We’ve had some interest overseas, and it’s just a matter of finding the right partner,” Simowitz said.
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