A major shakeup has just hit the fast-food world: the Subway owner buys chicken chain Dave’s Hot Chicken in a blockbuster $1 billion deal. Roark Capital, the Atlanta-based private equity giant known for its dominance in the restaurant franchise sector, announced the acquisition on June 3, 2025. This move marks another bold expansion for Roark, which already counts Subway, Dunkin’, Arby’s, and Buffalo Wild Wings among its portfolio.
What makes this deal stand out is not just the price tag, but the rapid rise of Dave’s Hot Chicken—a brand that started in a Los Angeles parking lot just eight years ago. As the Subway owner buys chicken chain Dave’s Hot Chicken, the industry is watching closely to see how this acquisition will reshape the competitive landscape in fast-casual dining.
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Dave’s Hot Chicken: From Parking Lot to Powerhouse
When Dave’s Hot Chicken launched in 2017, it was little more than a pop-up run by three childhood friends with $900 and a dream. They specialized in Nashville-style hot chicken, quickly attracting a cult following. By 2019, the brand had begun franchising under the leadership of Bill Phelps, a veteran restaurateur who previously helped build Wetzel’s Pretzels and Blaze Pizza.
Fast forward to 2025: Dave’s Hot Chicken operates over 300 restaurants and has sold franchise rights for more than 1,000 locations across the United States, Middle East, and Canada. The company expects to surpass 400 locations by the end of this year, making it one of the fastest-growing chicken chains in the world.
Why the Subway Owner Buys Chicken Chain Dave’s Hot Chicken
Roark Capital’s acquisition is more than just another investment—it’s a strategic move to capture the surging demand for hot chicken and fast-casual dining. The Subway owner buys chicken chain Dave’s Hot Chicken as part of a broader strategy to diversify and strengthen its restaurant holdings.
Key reasons behind the acquisition include:
- Explosive Growth: Dave’s Hot Chicken reported year-over-year visit growth of over 60% in early 2025, outpacing other major chicken chains.
- Global Expansion: With over 155 new locations planned for this year alone, Dave’s is poised for international growth.
- Social Media Power: The brand boasts 1.1 million Instagram followers and 3.6 million on TikTok, driving engagement and brand loyalty.
- Franchise Model: All franchisees have prior experience with major brands, ensuring operational excellence and rapid rollout.
Roark Capital’s Restaurant Empire
Roark Capital is no stranger to the restaurant world. The firm manages around $40 billion in assets and owns or backs an impressive array of food brands through its holding companies Inspire Brands and GoTo Foods. Its portfolio includes:
- Subway
- Dunkin’
- Arby’s
- Jimmy John’s
- Sonic
- Buffalo Wild Wings
- Auntie Anne’s
- Cinnabon
- Jamba
The acquisition of Dave’s Hot Chicken is the latest in a series of high-profile deals, following Roark’s $9.6 billion purchase of Subway in 2023. By adding a fast-growing chicken chain to its roster, Roark is betting big on the continued popularity of chicken-centric menus and the resilience of the fast-casual sector.
What’s Next for Dave’s Hot Chicken?
Despite the change in ownership, Dave’s Hot Chicken will keep its leadership team, including CEO Bill Phelps and the founding partners. The company has made it clear that menu innovation, food quality, and guest experience will remain top priorities. Investors—including celebrity backer Drake—are expected to benefit from the brand’s global ambitions and Roark’s operational expertise.
The deal is also likely to accelerate Dave’s technological and digital transformation, leveraging Roark’s resources and industry connections. With the Subway owner buying chicken chain Dave’s Hot Chicken, expect to see new locations, menu innovations, and more seamless digital ordering experiences in the near future.
How This Impacts the Fast-Food Landscape
This acquisition signals a new era for fast-casual dining. The Subway owner buys chicken chain Dave’s Hot Chicken at a time when consumer preferences are shifting toward bold flavors, customizable menus, and digital convenience. Roark’s deep pockets and franchise expertise could help Dave’s Hot Chicken challenge established giants like Raising Cane’s, Chick-fil-A, and KFC.
Here’s how the deal could reshape the market:
| Brand | Locations (2025) | Ownership | Notable Growth Plans |
|---|---|---|---|
| Dave’s Hot Chicken | 400+ | Roark Capital | 155+ new stores this year |
| Raising Cane’s | 750+ | Privately Owned | Steady U.S. expansion |
| Chick-fil-A | 3,000+ | Privately Owned | International expansion |
| KFC | 25,000+ | Yum! Brands | Global expansion |
Conclusion: The Future of Fast Food Is Heating Up
With the Subway owner buying chicken chain Dave’s Hot Chicken, the fast-food industry is set for a wave of innovation and expansion. Roark Capital’s expertise in franchising and operations could supercharge Dave’s growth, making it a household name worldwide. For fans of hot chicken and franchise investors alike, this is a story worth following.
Stay tuned for more updates as Dave’s Hot Chicken and Roark Capital roll out new locations and menu innovations. If you’re passionate about food trends or considering a franchise investment, now is the time to watch this space—and perhaps even taste the heat for yourself.
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