Savory Fund, the Lehi, Utah-based private-equity firm, on Wednesday said that it has made an investment in Houston TX Hot Chicken.
The chain operates 11 locations in six states. It was founded in 2021 by Edmond Barseghian and plans to grow through franchising. The brand features a menu of hot chicken sandwiches, tenders, salads, soups, waffle shakes and loaded fries with seven signature sauces.
The sauces range from “no spice” to “Houston, We Have a Problem.”
It’s the latest indication of the rising popularity of hot chicken concepts, as brands such as Dave’s Hot Chicken grow rapidly across the U.S., while major brands including Popeyes, KFC, Chick-fil-A and McDonald’s feature spicy versions of sandwiches and nuggets on their menu.
For Savory, it is the latest in a string of investments in growth concepts. The firm has invested in concepts such as Swig, Via 313, Hash Kitchen, Pincho and Mo’Bettahs. The firm has $600 million in assets and combines restaurant industry experience with a focus on growth.
The firm called Houston TX Hot Chicken, or HHC, “a standout star of the hot chicken phenomenon.”
“Savory has been monitoring this flavor segment for the past five years,” Andrew Smith, cofounder and managing partner of Savory Fund, said in a statement. “We have met and evaluated many brands attempting to do what HHC has already accomplished and we are thrilled to make this strategic investment.”
Barseghian said that the deal should help “amplify our operational capabilities.” “The journey ahead is electrifying,” he said.
Terms of the deal were not disclosed. Harrington Park Advisors was the financial advisor for HHC. Mayer Brown was legal advisor to Savory Fund. Greenberg Traurig was legal advisor to HHC.
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