Roark Capital nears US$1B acquisition of Dave’s Hot Chicken

USA – Dave’s Hot Chicken, the US-based fast-casual chain celebrated for its Nashville-style hot chicken, is reportedly nearing a US$1 billion acquisition by Roark Capital.

Major news outlets, including the Wall Street Journal, report that the leading private equity firm is in advanced discussions to acquire Dave’s Hot Chicken.

Rising labor costs have made restaurant franchises increasingly attractive investments, thanks to their steady royalty streams and relatively low operating expenses.

Competitive Landscape and Divestment Strategy

Operating more than 250 locations worldwide with approximately US$1 billion in annual sales, Dave’s Hot Chicken faces stiff competition from established brands such as KFC, Popeye’s, and Chick-fil-A.

In February 2025, Reuters disclosed that the company had engaged North Point Investment Bank to manage a potential divestment process.

This move comes amid a flurry of activity in the U.S. restaurant sector, where deals like Blackstone’s acquisition of Tropical Smoothie Cafe and ongoing negotiations involving Freddy’s Frozen Custard & Steakburgers and Crumbl are reshaping the market.

Diversifying Through Catering Initiatives

To diversify revenue, Dave’s Hot Chicken recently launched its inaugural catering program in partnership with food tech platform ezCater.

This initiative allows businesses to place orders for meetings, events, and staff lunches from over 200 locations.

President and Chief Operations Officer Jim Bitticks explained that the collaboration targets high-value workplace orders, averaging over US$500 per transaction, and expects catering to account for up to 10% of the chain’s business within a year.

This strategic addition not only opens a new revenue stream but also strengthens the brand’s market position.

Enhancing Operational Efficiency and Brand Consistency

In another strategic move, Dave’s Hot Chicken partnered with Reality Based Group (RBG) in February 2025 to deploy advanced video mystery shopping technology.

This initiative aims to boost customer service quality, improve operational efficiency, and ensure a consistent brand experience across all outlets.

By refining these operational aspects, the company is better positioned to navigate current market challenges and capitalize on emerging opportunities.

This series of strategic initiatives, from potential acquisition talks and divestment plans to innovative catering and efficiency enhancements, illustrates how Dave’s Hot Chicken is adapting to a rapidly evolving industry landscape while continuing to deliver quality and value for its customers, franchise owners, and stakeholders.

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