The limited-service chicken segment couldn’t be more crowded, but one restaurant chain stands out as a category leader: Dave’s Hot Chicken.
The Los Angeles-based fast-casual chain was named this year’s winner of the Pacesetter Award, which honors brands that have moved from up-and-coming status to become leaders in their space. The rapidly growing hot chicken tender brand was celebrated at the annual Restaurant Leadership Conference in Phoenix on Sunday, hosted by Restaurant Business, Nation's Restaurant News and parent company Informa.
Launched in 2017 as a popup in a Los Angeles parking lot by four friends, Dave’s Hot Chicken is known for its chicken tenders and sandwiches offered with varying spice levels, from no spice to a sinus-cavity-blowout known as “The Reaper.”
The first brick-and-mortar location opened in 2018, and the next year a group of investors acquired an equity stake in the brand with plans to franchise. Those investors were led by Bill Phelps, co-founder of Wetzel’s Pretzels, who was also an early investor in Blaze Pizza.
Phelps brought to Dave’s a number of other investors, including movie producer John Davis and Red Sox owner Tom Werner. But Dave’s soon attracted other high-profile backers, including the rapper Drake, the singer/songwriter Usher (who is also a franchisee) and actor Samuel L. Jackson.
“It’s all about the team that we built,” said Phelps, accepting the award on Sunday. “This whole team took this thing from nothing into a business that’s worth over a billion dollars. But then, it’s about the franchisees. The franchisees are out of this world. We brought the best in this industry.”
Phelps also put the spotlight on Arman Oganesyan, one of the co-founders who started the brand in that Los Angeles parking lot and strategically built a social media following to raise brand awareness.
“At the end of the day, the story is about this guy,” Phelps said of Oganesyan, who joined him on stage. “High school dropout, who is a marketing genius, and he created it all.”
Dave’s had a good year in 2024.
The chain grew sales more than 57% to $616.6 million, according to data firm Technomic. And the rapid growth continued, with a more than 43% increase in unit count to 245, including a move for the first time into the United Kingdom.
Dave’s officials are projecting sales will top $1 billion this year with the addition of another 90 restaurants. The development pipeline also includes more growth in both the Middle East and Canada.
There are reports that private-equity firm Roark Capital is in talks to acquire Dave’s in a deal valued at about $1 billion, though company officials could not comment.
Dave’s, meanwhile, continues to innovatae.
This week the chain added mini sliders to its menu, starting Tuesday. Each order comes with four mini sliders, customized with the option of three spice levels, for $7.49 (or bundled with fries for $10.49).
The sliders are being marketed as either a portion for one or a portion for four people taking GLP-1 drugs. And, for a limited time, the popular Dave’s sauce that accompanies the offerings has been renamed “Davezempic.”
Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.