Who Owns Dave’s Hot Chicken?

Dave’s Hot Chicken is a fast-casual restaurant chain based in Pasadena, California. The company was started in 2017 by childhood friends Dave Kopushyan, Arman Oganesyan, and Tommy Rubenyan. It launched as a pop-up in a Los Angeles parking lot and expanded the business worldwide in less than seven years. In 2023, Dave’s Hot Chicken opened 79 new stores. The chain now operates over 180 locations. It has over 800 franchise stores globally. [1]

Dave’s Hot Chicken leverages social media and celebrity collaborations to fuel its growth. In 2023, the chain surpassed 1.1 million followers on TikTok by harnessing user-generated content from its loyal fan base. The company launched its new mobile app in 2023. Then, they gave away hundreds of tickets to Drake’s concert stops to boost app downloads. [2]

Dave’s Hot Chicken specializes in Nashville-style jumbo hot chicken tenders and sliders, with seven spice levels from No Spice to Reaper. They also offer house-made Kale Slaw, creamy Mac & Cheese, and French Fries. In May 2023, Dave’s Hot Chicken was named America’s Fastest Growing Restaurant Chain by Technomic. The brand posted 156% sales growth in a year, outpacing all US restaurant chains. Dave’s opened seven new locations weekly in Nov 2023. [3]

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Who is Dave’s Hot Chicken’s Parent Company?

Dave’s Hot Chicken is an independent restaurant chain owned and funded by its founders and investors. It doesn’t have a parent company or sole owner. The chain generates money from its company-owned restaurants and franchising locations to third-party entrepreneurs.

In Aug 2023, Dave’s Hot Chicken signed a franchise agreement with Vision Food Group. The experienced operator will open eight franchise locations in Georgia, US, including Fulton, Forsyth, Cobb, Douglas, and Cherokee counties. [4]

Dave’s Hot Chicken’s meteoric rise is driven partly by its strategy of recruiting only highly experienced franchise operators. Most of the company’s C-suite consists of franchisees, like chief development officer Carolyne Canady. Canady has two franchised stores.

The ideal franchisee for Dave’s should have a $5 million net worth, $2.5 million in liquid assets, and five or more QSR or fast-casual restaurants. These requirements ensure the company only partners with experienced and highly liquid operators. [5]

Another factor driving Dave’s meteoric rise is its top management team. Co-founder Dave Kopushyan and the chain’s namesake is a classically-trained chef. Dave’s CEO, Bill Phelps, has years of experience after leading Blaze Pizza and Wetzel’s Pretzels.

The chain has experts like President and COO Bitticks, CFO McGehee, VP of Franchise Support Lopez, CMO Haley, and CTO Davoyan. In 2023, CEO Phelps was included in Fast Casual’s Top 25 Executives list and initiated into the Fast Casual Hall of Fame. Dave’s Hot Chicken was #1 at the Nation’s Restaurant News “Top 500” franchise award. [6]

Although Dave’s Hot Chicken is thriving, the company is already strategizing for future growth. The chain seeks to expand its social media channels, introduce menu offerings, and enter high-profile partnerships to continue growing its large-scale presence. In early 2023, the company extended its test of “Dave’s NOT Chicken” in Oregon. This option offers thick-cut cauliflower slices instead of chicken for vegetarians and vegans. [7]

Dave’s Hot Chicken’s Ownership History

Dave’s Hot Chicken’s ownership history starts with four friends, Arman Oganesyan, Dave Kopushyan, Tommy Rubenyan, and Gary Rubenyan. In May 2017, they scraped together $900 to purchase a fryer. The four friends set up a pop-up on a California parking lot and served the best-tasting hot chicken tenders prepared by clinically-trained chef Dave Kopushyan. Customers quickly lined up around the block to get a piece of Dave’s hot chicken. [8]

The parking lot pop-up and tasty food birthed the Dave’s Hot Chicken brand, with the four friends as the co-founders and original owners. They set up folding tables and a portable fryer under the night sky and leveraged Instagram to attract customers.

The social media buzz and word of mouth brought an EATER/LA reporter to their pop-up. He took his first Dave’s Hot Chicken tender and posted, “East Hollywood’s New Late Night Hot Chicken Stand Might Blow Your Mind,” the next day. This post reinforced the brand’s authenticity and expanded its reach beyond social media. [9]

Dave’s Hot Chicken quickly took off after the EATER/LA reporter’s post. The co-founders opened the brand’s first brick-and-mortar restaurant in East Hollywood. In 2019, the team signed a franchising deal with an investment group led by Wetzel’s Pretzels co-founder Bill Phelps and movie producer John Davis.

The group helped Dave’s Hot Chicken franchise its concept across the US and beyond. The company expanded from zero franchise locations in 2019 to over 800 franchised stores globally in Jan 2024.

Dave’s phenomenal growth attracted more brand investors, including Samuel L. Jackson and retired NFL player Michael Strahan. In 2021, Billboard’s Artist of the Decade, Drake, took notice of the restaurant’s proprietary hot chicken recipe.

Drake became one of the top investors in the Dave’s Hot Chicken concept and worked closely with the team to promote the brand. In Oct 2023, Drake celebrated his birthday by gifting free sliders to customers visiting Dave’s Hot Chicken restaurants. Drake highlighted the celebration on his Instagram page, with over 144 million followers. [10]

Dave’s Hot Chicken’s Shareholder Structure

Dave’s Hot Chicken is a private company owned, funded, and operated by its co-founders and investors. Its shareholder structure includes the four co-founders – Arman Oganesyan, Dave Kopushyan, Tommy Rubenyan, and Gary Rubenyan.

In 2019, Bill Phelps and his investment group funded Dave’s Hot Chicken’s franchising for a 50% stake in the fast-casual brand. The co-founders retained 50% ownership of company-owned business and 100% of Dave’s Hot Chicken franchisees. [11]

The investment group behind the 2019 deal included Bill Phelps, Maria Shriver, John Davis, and Red Sox owner Tom Werner. The four invested in the Blaze Pizza chain in 2012. Phelps stepped down as Wetzel’s Pretzel’s CEO took the CEO position at Dave’s Hot Chicken as part of the 2019 deal.

Actor Samuel L. Jackson and former NFL player Michael Strahan joined the Dave’s Hot Chicken investor group. Jackson invested a portion of his $250 million fortune in Dave’s for a minority stake in the company. [12]

Dave’s Hot Chicken adopted a celebrity-driven shareholder structure to expand its business. In 2021, Canadian hip-hop star Drake invested in Dave’s for a minority stake in the fried-chicken chain. Drake owns less than 50% of the company. However, he is one of the brand’s leading investors. [13]

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