In a major shakeup within the fast-casual dining world, the Subway owner buys chicken chain Dave’s Hot Chicken in a blockbuster deal reportedly worth $1 billion. Roark Capital, the private equity giant that owns Subway and several other major food brands, has expanded its portfolio once again—this time locking in one of America’s fastest-growing spicy chicken concepts. This latest acquisition underscores the investor’s aggressive push into trendy, high-growth food markets and signals big changes ahead for the restaurant industry.
The deal was finalized this week and comes at a time when Dave’s Hot Chicken is experiencing unprecedented growth. With hundreds of locations already in operation and plans for dozens more by the end of the year, the chicken brand’s rapid rise made it an irresistible target for a powerhouse like Roark Capital.
Dave’s Hot Chicken: A Rapid Rise from Street Stand to Global Brand
Dave’s Hot Chicken started as a pop-up stand in a Los Angeles parking lot just a few years ago. Built on a simple, spicy menu of hot chicken tenders and sliders, the brand drew long lines from the start. Its viral success, bolstered by investor buzz and celebrity backers, propelled the brand into franchise mode by 2019. Since then, its expansion has been swift and focused.
- Over 300 locations globally
- Operations in the U.S., Canada, and the Middle East
- Signature menu with spice levels from “No Spice” to “Reaper”
- Celebrity investors include Drake and Samuel L. Jackson
The chain’s minimalistic menu, premium ingredients, and cult-like following created the perfect storm for national and international expansion. It’s no surprise that a major firm with a track record like Roark’s saw big potential.
Why the Subway Owner Buys Chicken Chain That’s All About Heat
Roark Capital’s acquisition strategy has always centered around proven franchise models and scalable concepts. With Dave’s Hot Chicken, they’re betting on the same formula that’s worked with Subway, Arby’s, Dunkin’, and others. But this time, the twist is spice—and lots of it.
Adding Dave’s to its roster gives Roark a foothold in the hot chicken craze that’s taken America by storm. Unlike Subway, which has seen a decline in U.S. store numbers in recent years, Dave’s is a rising star. By acquiring a high-momentum brand with tons of growth runway left, Roark is hedging its bets and pivoting to what’s hot—literally and figuratively.
Here’s what makes Dave’s a strategic win:
- Low overhead model and high franchise demand
- Huge social media presence and Gen Z appeal
- Quick-service format ideal for expansion
- Strong brand identity centered on spicy food trends
This deal doesn’t just bring a popular chain under Roark’s wing; it shifts their trajectory toward edgier, trend-savvy food concepts.
What’s Next for Dave’s Hot Chicken Under New Ownership?
The management team at Dave’s Hot Chicken, including its CEO and president, will stay in place, ensuring continuity in vision and operations. That said, big changes are coming. With Roark’s deep pockets and experience scaling global franchises, Dave’s is expected to double down on international growth and enter untapped markets.
Plans reportedly include:
- 150+ new store openings in the next year
- Penetration into new international markets
- Enhanced digital ordering and delivery systems
- Strengthening franchise support infrastructure
Roark’s backing gives Dave’s the fuel it needs to compete with giants like Chick-fil-A and Popeyes in the fast-growing spicy chicken space. And it’s a strong signal that niche, high-demand food brands are where the future of fast-casual dining is headed.
Subway Owner Buys Chicken Chain to Reignite Food Industry Buzz
This acquisition isn’t just about one chicken chain—it’s about shifting the spotlight in the food industry. Subway’s parent company is known for investing in recognizable, franchisable food brands. By picking up a culturally relevant and red-hot name like Dave’s Hot Chicken, Roark Capital is reinvigorating its strategy with youthful energy and bold flavors.
The move also reflects the broader shift in consumer behavior: diners today crave fast, customizable, Instagrammable meals—and Dave’s delivers on all counts. From its fiery sliders to its vibrant storefronts, everything about the brand screams “next big thing.”
Expect to see Dave’s Hot Chicken popping up in new cities and countries soon. With the Subway owner buying chicken chain gold, this could be the most exciting fast-food growth story of the year.
Craving the heat? Find a Dave’s Hot Chicken near you or try their famous “Reaper” level challenge. Whether you’re a spice lover or just hungry for change, now’s the perfect time to see what the hype is all about.