It all began in an East Hollywood parking lot, where a trio of friends from L.A.’s Armenian community took a leap of faith with only $900.
In 2017, with a single fryer and a tent buffeted by the wind, they started their venture aimed at bringing Nashville-style spicy fried chicken to the masses.
Fast forward to today, and Dave’s Hot Chicken has become a billion-dollar business, serving its craggly, neon-red chicken tenders and sandwiches not just in Los Angeles, but also in cities like London and Dubai.
The chain now boasts about 320 storefronts, with plans for an additional 800 locations, showcasing its rapid expansion.
Co-founder Arman Oganesyan reflected on their journey, stating, “Ever since Dave’s started it changed my life, but this [deal] gives me a little bit of security.”
The growth from a small pop-up to a billion-dollar valuation was largely propelled by Roark Capital’s acquisition of the chain.
Oganesyan, who moved to Los Angeles from Armenia at the age of two, recalled meeting Dave Kopushyan in kindergarten and their shared dream.
Kopushyan, now the chef and another co-founder, joined forces with Oganesyan and Tommy Rubenyan, both high school dropouts, believing fiercely in their hot chicken concept.
Their motivation to enter the food industry came from noticing how Nashville hot chicken was gaining traction, particularly after the rise of hotspots like Howlin’ Ray’s in Chinatown.
Nashville hot chicken, known for its fiery coating made of cayenne and paprika, was made famous by Thornton Prince III of Nashville’s Prince’s Hot Chicken.
Oganesyan and his partners decided to venture into the culinary world, and after months of testing and formulating recipes, they were ready to share their creation with the public.
They leveraged their pooled resources—Oganesyan had saved $315, while Kopushyan contributed $300 from his paycheck.
Additionally, Rubenyan channeled $300 into the project, resulting in their first pop-up opening in May 2017 in a vacant lot across from Rubenyan’s parents’ flower shop.
The initial plan was to operate informally for about a year before branching out into a food truck and eventually establishing a restaurant, but demand escalated rapidly.
By leveraging word-of-mouth and social media platforms like Instagram and TikTok, the small stand began seeing lines of customers that stretched for blocks.
As they served two tenders with fries and slaw—and later added sandwiches—their offerings began to evolve, eventually introducing a range of spice levels.
Oganesyan humorously remarked, “It’s not called Dave’s Mild Chicken,” encouraging customers to try the hotter options.
Despite their limited initial setup, with the chicken sourced from Wayne Farms, they soon realized they needed to transition into a full restaurant to keep pace with demand.
Their first formal restaurant debuted shortly after the pop-up, and it was followed by the secured involvement from investors such as John Davis and Bill Phelps.
The decision to sell half of the company to Davis and Phelps in 2018 ushered in a new phase, as they began to scale their operations, leading to the opening of multiple locations across California and beyond.
As the business surged, the founders continued exploring franchise opportunities and international growth, with plans set for locations in Canada, the UAE, and the U.K.
Amid celebrity endorsements from notable figures like Drake and Samuel L. Jackson, Oganesyan remained steadfast, insisting that quality food is paramount above all else.
The venture took a significant turn when Roark Capital, a major private equity firm, acquired 70% of Dave’s Hot Chicken in a deal valued at $1 billion.
Bitticks, the company president and COO, explained that the management team would retain 50% equity to ensure continued commitment to the brand’s vision.
Despite the acquisition, the founders expressed their intent to maintain the core values that contributed to their early success.
The operational structure, including the management team and culinary leadership, would retain their roles post-acquisition, with plans for careful international expansion.
Dave’s Hot Chicken remains committed to holding onto its roots, as the founders hope to grow the brand internationally while sticking to what made them popular in the first place.
Moreover, they assured customers that changes would be minimal; the beloved recipes and sourcing methods would remain intact.
Oganesyan envisions new opportunities ahead, stating, “I feel like the sky’s the limit right now,” as Dave’s prepares to enter new markets.
Staff retention was also emphasized during the acquisition process, with a bonus pool created to reward employees who contributed to the business’s development.
For Olivia Mendoza, her discovery of Nashville-style hot chicken came through her job with Dave’s, leading her to become a business owner within a year.
Now, she operates several locations and is optimistic about the staying power of the brand in a competitive market.
Mendoza reflected on the vitality of the niche, asserting that the brand’s supportive community and devoted followers would sustain their growth.
As Dave’s Hot Chicken continues to expand, its founding members remain dedicated to keeping Los Angeles as its heart and driving force.
In their eyes, despite taking the brand global, they will always carry the spirit of their L.A. origins, which serves as their “home court advantage.”
With eyes firmly on the future, the founders are excited to see how far their Nashville hot chicken will continue to spread.
image source from：latimes
