Dave's Hot Chicken: From $900 to a Billion-Dollar Business

Oct 12

3 min read

Three childhood friends in Los Angeles started Dave's Hot Chicken in 2017 with just $900, a few folding tables, a tent, and a portable fryer.

What began as a small parking-lot pop-up eventually became one of America's fastest-growing restaurant brands.

From $900 to a billion-dollar business.

A Simple Idea With Huge Potential

Founders Arman Oganesyan, Tommy Rubenyan, and Dave Kopushyan spotted the growing popularity of Nashville hot chicken and decided to bring their own version to Los Angeles.

But they had two important advantages.

They had a trained chef and a simple recipe they could scale.

Dave, a professionally trained chef, helped develop the recipes, focusing on flavor, consistency, and a product customers would remember.

They also kept the menu extremely simple: chicken tenders, sliders, and a handful of sides.

Like Raising Cane's and In-N-Out, they focused on doing a few things exceptionally well.

Founders of Dave's Hot Chicken. Image credit: CNBC.

They Tested the Idea Before Investing Big

Instead of borrowing heavily to open a restaurant, the founders started with a $900 parking-lot pop-up.

Their first night brought in just $40.

But everything changed when a Los Angeles food writer featured their chicken.

Suddenly, customers were lining up, social media was buzzing, and their little pop-up became a local sensation.

The founders had discovered something incredibly valuable.

People genuinely wanted their product.

They Grew Through Community, Not Expensive Advertising

Dave's Hot Chicken built its early popularity through word of mouth, local food coverage, and social media.

Customers shared photos, recommended the restaurant to friends, and helped turn a small food stand into a recognizable brand.

Instead of spending millions on advertising, they created a product people wanted to talk about.

Celebrity Investors Helped Fuel the Growth

As the company expanded, Dave's Hot Chicken attracted high-profile investors, including Samuel L. Jackson, Michael Strahan, and Drake.

These partnerships helped introduce the brand to new audiences and strengthened its cultural appeal.

Drake invested in and promoted Dave's Hot Chicken. Image credit: People.

Franchising Turned a Local Hit Into a Global Brand

The founders opened their first permanent restaurant after proving the concept.

Rather than owning every new location themselves, they embraced franchising in 2019.

This allowed franchise partners to invest in opening and operating restaurants while Dave's Hot Chicken expanded its brand and earned franchise-related revenue.

The result was rapid expansion without having to fund every new restaurant directly.

By 2023, Dave's Hot Chicken had reportedly generated more than $600 million in systemwide annual sales, reflecting the extraordinary growth of the brand.

In 2025, private equity firm Roark Capital acquired Dave's Hot Chicken in a deal reported to value the company at approximately $1 billion.

What began with $900 in a parking lot had become a billion-dollar restaurant success story.

The Business Lesson

Dave's Hot Chicken demonstrates that you don't always need a huge investment to build a successful business.

The founders followed a few powerful principles:

Start small: Test demand before committing significant capital.
Keep it simple: Focus on a product customers genuinely love.
Let customers spread the word: A remarkable product can become its own marketing engine.
Scale strategically: Use partnerships and franchising to accelerate growth.