**Dave’s Hot Chicken: From Struggling Pop-Up to Billion-Dollar Business**
In the world of fast food, few successes are as heartwarming and jaw-dropping as that of Dave’s Hot Chicken. Just six years ago, four childhood pals from East Hollywood were struggling to make ends meet, barely pulling together $900 to launch their spicy chicken pop-up. Fast forward to today, and they’re cashing in on a whopping $1 billion deal. This rocket-fueled ride into the culinary stratosphere is a testament not only to their tenacity but also to the power of social media and a little bit of celebrity magic.
Bill Phelps, the savvy 69-year-old CEO of Dave’s Hot Chicken, took the helm in 2019 after leading other well-known brands like Blaze Pizza and Wetzel’s Pretzels. Teaming up with him is Jim Biddick, the brand’s president and COO, who also boasts a Blaze Pizza background. Together, they’re steering this spicy ship toward sizzling success. Recently, they met with the co-founders of the chain, who were celebrating their latest achievement: selling 70% of their business to Ror Capital at a valuation fit for a king. This private equity giant, which also owns Subway and Buffalo Wild Wings, has recognized the mouthwatering potential of Dave’s Hot Chicken.
What started as a quaint pop-up serving cayenne-coated Nashville-style chicken has exploded into a global phenomenon, generating about $620 million in systemwide sales in 2024, with over 300 locations around the world. The enticing heat of their famous chicken, which comes in six spice levels—including the infamous “Reaper” that requires a waiver to eat—has captured the hearts of chicken lovers everywhere. The power of social media hasn’t hurt, either. The brand garners millions of views weekly on TikTok, fueled by posts from enthusiastic fans and influencers, including the likes of rapper Drake.
The success story becomes even sweeter when considering the co-founders, who were once so broke they struggled to fund their initial venture. Each of the four co-founders now stands to earn an impressive $80 million pre-tax as they sell off around 80% of their stakes in the company. While they might have been skeptics about their windfall—one even Googled whether Ror could ask for the money back—they’re undeniably now walking on cloud nine. It’s a dazzling leap from the mere $2 million they once sold half the business for back in 2018, a deal that seemed like a jackpot at the time.
Phelps and John Davis, a Hollywood producer and prominent food investor, played pivotal roles in turning Dave’s into a billion-dollar prospect. Their collaboration transformed the brand into its current success, with sharp strategy and promotional finesse. Phelps and Davis are now reaping the rewards of their investment, having multiplied their initial stake by an astounding 250 times. But their generosity shines through, as they’ve set aside a bonus pool for the hardworking employees and executives of Dave’s, ensuring that nearly 20 individuals will join the ranks of millionaires thanks to their efforts.
As the story continues to unfold, it serves as a reminder that determination, creativity, and the right partnerships can lead to savory successes. From a humble pop-up to a billion-dollar valuation, Dave’s Hot Chicken isn’t just about making the best spicy chicken—it’s about rewriting the narrative of what’s possible in the fast-food industry. Who knows? The future could hold even more surprises and mouthwatering chicken treats for this remarkable brand!
