Roark Capital Acquires Dave’s Hot Chicken For $1B and Eyes International Growth
The fast-casual chain went from parking-lot popup to 10-digit deal in eight years. Roark Capital has acquired the Los Angeles-based Dave’s Hot Chicken in a deal valued at $1 billion, the fast-casual chain announced on Monday. The long-rumored deal brings a high-flying growth brand into the restaurant-deep portfolio of Atlanta-based Roark, a private-equity firm that paid more than $9 billion to acquire Subway in 2023. The firm is also parent of two multi-brand platform companies: GoTo Foods (Auntie Anne’s, Carvel, Cinnabon and more) and Inspire Brands (Arby’s, Sonic, Dunkin’ and more). And it owns Culver’s, the Hardee’s and Carl’s Jr. brands, and Jim N’ Nick’s Bar-B-Q. With the deal, Dave’s management team will remain in place, including Bill Phelps as CEO, Jim Bitticks as president. Co-founder Arman Oganesyan is chief brand officer and co-founder Dave Kopushyan is chief culinary officer. “We’re all staying. Nobody is leaving. The goal is to keep it growing,” said Bitticks. With 315 units and up to 175 expected to open this year, the almost entirely franchised chain has seen extraordinary growth in recent years across the U.S. and now into Canada, the United Kingdom, and the Middle East. International growth is a huge opportunity, said Bitticks. After “opening huge” in London, the brand is planning to push into other European countries. And the chain sees Asia as having potential, especially given that KFC has some 10,000 restaurants there. “You’ll see us popping up everywhere,” Bitticks said. Domestically, Dave’s plans to move into nontraditional growth in airports and college campuses, for example. Currently, Dave’s has only a handful of nontraditional locations. Joining the Roark portfolio opens doors to a wealth of franchise operators, both domestically and internationally, said Bitticks. But he noted that Dave’s deliberately avoided being “gobbled up” into GoTo Foods or Inspire Brands. “We stand alone within their portfolio and that was on purpose,” he said. “We expect to be a super high performer, like, the new rock star within the portfolio.” In 2024, Dave’s recorded domestic systemwide sales of nearly $617 million, a 57% increase over the prior year, with 245 units, a 43% increase, according to the Top 500 Restaurant Chain report by Technomic, a sister brand to Restaurant Business. Dave’s was among the top 100 brands, ranking at No. 89 on the list. Bitticks expects systemwide sales to top $1.2 billion this year…
How the Taproom Landscape is Changing
Doubling down on hospitality to stay relevant in a shifting beer market. n today’s climate, consumers are more deliberate with their discretionary spending, and the battle for share of wallet is fiercer than ever. That’s especially true in the beer space, where consumption has been on the decline for a while now. “People are watching their dollars, or at least being a bit more intentional about where they go and when they’re going,” says Josh Robinette, CEO of The Casual Pint. The craft beer segment is “a hard one to chase sometimes,” he adds, pointing to shrinking demand and a 2024 turning point, when more breweries closed than opened for the first time in nearly 20 years, per Brewers Association data. The Casual Pint, an 18-unit franchise based in Knoxville, Tennessee, has evolved significantly since its founding in 2011. The original location featured a modest tap lineup and hundreds of SKUs of packaged beer geared toward take-home sales. Over time, the concept expanded the size of its spaces to encourage guests to linger, transitioning into a more restaurant-like setting with ample seating and space for socializing. The food menu has steadily grown as well, moving beyond bar bites to include shareables, burgers, flatbreads, and other entrees. Now, the company is looking to inject more creativity and variety into its offerings. Robinette says the focus is twofold: refining the core menu while introducing more limited-time offerings.
“If we can keep people engaged on the food side, it only adds to the experience and builds loyalty,” he says. “We’re trying to streamline what’s always available, so that we can lean into more creative offerings and bring more excitement and variety to that side of the business.” To better reflect its evolution into a full-service experience, The Casual Pint trademarked the term “beerstro” last year. “It can be difficult to explain what we are and how we’ve evolved from that craft beer market to where we are today,” Robinette says. “Our environment is more like a coffee shop where you come in and hangout for a while. We want people to be there and talk to each other and mingle with each other”…
Bielat Santore & Company – Restaurant Industry Alert
MONMOUTH COUNTY, NJ SPORTS BAR-RESTAURANT FOR SALE
PRICE REDUCED TO SELL!
Turn-key Sports Bar/Restaurant for Sale in Western Monmouth County, NJ
- Location: Highly visible State Highway
- Property Size: 3.88 acres
- Building: 6,500+ sq. ft. free-standing structure
- Seating:
Dining: 90 seats
Bar: 95 seats with flat screens
Outdoor Patio: 30 seats
- Recent Renovation: Complete top-to-bottom bar overhaul
- Financials: Grossing approximately $1.5M annually
- Financing: Available for qualified buyers
- Utilities: Electricity, gas, water, sewer, and telephone
This property offers a fantastic opportunity for a new owner to step into a strong high-traffic location with a lot of upside potential. Interested?
Contact Richard Santore, 732.531.4200 for additional information.
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Legal Insights to Help Restaurants Manage Alcohol Tariff Challenges
Understanding how tariffs affect costs and how to respond legally. Restaurants now find themselves caught between consumer demand for high-quality cocktails and the rising cost of imported staples like tequila, scotch, cognac, and European liqueurs. Alcohol tariffs may sound like a policy issue best left to trade attorneys or importers. But for full-service restaurant operators, tariffs are quickly becoming a direct operational challenge. With tariffs on imported spirits increasing costs and creating uncertainty in pricing structures, restaurants must now make strategic, legally sound decisions about how they build and manage their beverage programs. For operators already navigating thin margins, the stakes are high. The hospitality industry is uniquely exposed to regulatory shifts, and alcohol, while a key revenue driver, is also one of the most tightly controlled areas of restaurant operations. Understanding how tariffs affect costs and how to respond legally and operationally is essential to long-term resilience. In 2025 alone, the U.S. enacted a minimum 10 percent tariff on all imported goods, including beer, wine, and spirits, alongside 25 percent tariffs on imports from Canada and Mexico and threats of 200 percent tariffs on European alcohol. These policy shifts are rooted in broader geopolitical tensions and trade disputes but have real, immediate implications for restaurant operators. Domestically, instability shows up in the form of rising wholesale prices, unpredictable availability of popular products, and tighter margins. Many restaurants now find themselves caught between consumer demand for high-quality cocktails and the rising cost of imported staples like tequila, scotch, cognac, and European liqueurs. Add to that the complexity of long-term supplier agreements and product scarcity, and you have a recipe for operational headaches. In our practice, we’ve seen a sharp uptick in restaurants seeking legal guidance to renegotiate distribution contracts, address tariff-related price hikes, and explore alternative licensing strategies that provide more control over sourcing and service models…
Millennial and Gen Z Consumers’ Dining Habits Change in a Stressful Economy
Nearly one-third of young consumers prioritize health and wellness when dining out. How do young consumers’ dining habits change during stressful times or in a challenging economy? Budgetary constraints aren’t the only considerations, as health, portion size, and comfort food also rank as shared priorities. Public relations agency Belle Communication has built Brilli, an influencer insights tool that surveys influencers on trends that they and their followers are seeing or want to see from restaurants and food operators. Brilli surveyed 548 Gen Z and millennial followers of three food-focused social media content creators—Daniel Romeo, Zackary Eats, and Blake Carmona—about their top dining drivers and how economic uncertainty influences their eating habits. When choosing where to eat, millennials and Gen Z diners primarily consider health and dietary goals (29.6%), followed by budget (28.5%) and emotions (24%). Despite industry emphasis on convenience, it ranked last with only 18% of respondents. “People aren’t just selecting food that saves money, they’re also thinking about how food makes them feel and how it aligns with their wellness goals,” Zackary (@zackaryeats) said. “This is consistent with an audience that is trying to make mindful choices even while navigating stress or financial pressure. It’s notable that convenience was not a top option. In a culture that’s often associated with a fast-paced lifestyle, this result suggests a shift.” Although budget ranked second among considerations, it remains a top priority, especially during tough economic times. What makes a restaurant worth the spend? An overwhelming 57.1% of respondents cited portion size or value as the main factor, while only 22% valued a unique experience, and 16.5% prioritized familiar or comforting options…
Fixing Common Restaurant Marketing Errors
From fumbling to flourishing. or restaurant operators striving to cut through the noise and connect with today’s diners, understanding the nuances of modern marketing and PR is crucial. It’s essential for survival and growth. Are you confident your current strategies are hitting the mark? Jessica Huang, CEO & Founder of Restaurant Marketing, understands what many restaurants are doing wrong in their efforts and how they’re missing opportunities to attract and retain customers. From underutilizing digital tools to misreading current guest preferences, she offers actionable insights on how to course-correct and achieve real results. What are common mistakes you see restaurant operators making in their marketing efforts and how can they rebound? Many restaurant operators tend to focus too much on the day-to-day details and on cutting costs when it comes to marketing. While it’s understandable to have a budget, it’s important to remember that you get what you pay for. Investing in the best possible marketing resources within your budget can lead to greater returns. Sometimes, operators can unintentionally hinder their own growth by getting too involved in the process. While it’s crucial to stay informed, stepping back and allowing experts to take charge can be key to overcoming these challenges. To rebound, I recommend hiring a trusted marketing professional or team that understands your vision and can execute strategies that help your restaurant thrive. This will also allow the operator to concentrate on the operational and menu aspects, ensuring that both customer service and menu innovation remain exceptional and continuously evolving. In what ways should restaurants be tapping into AI for marketing? Restaurants should tap into AI for marketing in a few keyways. First, AI can help personalize the customer experience by analyzing data to send tailored marketing messages, recommend menu items, and create dynamic loyalty programs that keep customers coming back. It can also optimize operations by forecasting busy times, adjusting staffing levels, and managing inventory, making everything run more smoothly and cutting down on waste.
For Some Restaurants, Not Taxing Tips Could Create More Headaches
The Independent Restaurant Coalition is urging Congress to reconsider a tax break on tips. A giant tax-and-spending bill making its way through Congress features a provision that in theory would be welcome to labor-starved restaurateurs around the country: The elimination of taxes on tipped income. But for Mike Haskett, the proposal would make matters worse. Haskett spent much of a Zoom call working in the back of M.B. Haskett Delicatessen, his restaurant in Sioux Falls, South Dakota. “I don’t have enough cooks in the kitchen to do the things I need to do as a restaurant owner,” he said during the call, presented by the Independent Restaurant Coalition (IRC), an activist group of independent restaurant owners. The coalition is opposing the provision that would eliminate taxes on tipped incomes, arguing that it would increase a sense of unfairness inside restaurants. Servers, bartenders, and other tipped workers can already make incredible incomes, particularly in states that require tipped workers be paid the minimum wage. Back-of-house workers like cooks and dishwashers, on the other hand, are lower-paid workers and can be difficult to find. Federal labor law makes it illegal for non-customer-facing workers to receive tips. The IRC argues that the no-taxes-on-tips proposal would make it even more difficult to find those back-of-house workers. It is arguing in favor of changes to the proposal to include service charges, which many restaurants charge to pay higher rates for those back-of-house workers. Many independent restaurants have turned to service charges to increase pay for back-of-house workers. “The no-tax-on-tips provision creates a real problem here,” said Erika Polmar, IRC’s executive director. “It leaves out the back-of-house staff … dishwashers, line cooks, porters, prep workers, who are just as critical to restaurants.” The provision was proposed by now-President Trump during the presidential campaign last year and was backed by his opponent, Democrat Kamala Harris. The provision was included in the tax bill that passed the U.S. House of Representatives last month. That bill is now being debated in the U.S. Senate…
Fast Casual Was the Happy Place in 2024
Sales in the segment far exceeded industry trends. While the quick-service and casual-dining sectors battled it out with value deals through 2024, the fast-casual sector served as a shelter in the storm for most brands. Fast-casual chain sales among the Top 500 grew 9% last year, far exceeding the 2.3% growth of quick-service and 1.3% growth in casual dining. Segment leader Chipotle climbed to No. 7 among the top 10 restaurant brands, and Panda Express appears poised to push into the top 10 at No. 11. The segment included some of the biggest growers of restaurants: Chipotle, Wingstop and Jersey Mike’s Subs added more than 200 units last year, for example, helping to offset the closures of struggling chains, according to the Technomic Top 500 Restaurant Chains report. It was a good year to be a fast-casual chicken chain. But it was a terrible year to be in fast-casual pizza or a legacy bakery-café brand. Two hot chicken brands led the segment, in terms of systemwide sales growth. Dave’s Hot Chicken has been on a tear as one of the fastest growing chains and continued its double-digit sales growth, with a more than 57% increase to $616.6 million, increasing its unit count by 43% to 245. That growth reportedly caught the attention of Roark Capital, which is rumored to be in talks to acquire the Los Angeles-based company in a deal valued at about $1 billion. As part of the Roark portfolio, Dave’s would become a relatively small fish in a big pond. Roark owns the sandwich chain Subway, as well as GoTo Foods (Auntie Anne’s, Carvel, Cinnabon and more), Inspire Brands (Buffalo Wild Wings, Arby’s, Dunkin’ and more), along with CKE Restaurants (Hardee’s and Carl’s Jr.), Culver’s, Miller’s Ale House and Nothing Bundt Cakes…
Did You Know?
Maintaining humanized interactions in digital-first business environment. With nearly every organization today adopting digital transformation strategies, many companies are focusing on providing more digital solutions to customers. This is true for businesses operating in office settings just as much as in restaurants, supermarkets, and other settings where businesses have daily contact with consumers. Nevertheless, while self-service POS systems or AI-enabled customer service chatbots can definitely help in achieving better operational efficiency, these solutions can often feel cold or disconnected. This can present serious issues for a business. Sure, people are busy and always on the go. But they still want to feel a real connection with the businesses they interact with. They want to feel heard, understood, and valued. So, making your digital interactions feel humanized is an important thing to get right…
Employee Tip
5 things you might be doing at restaurants that servers find rude. Even well-meaning diners can unintentionally disrespect servers through common habits like snapping fingers or overstaying after closing time. Small gestures — like making eye contact or saying thank you — go a long way in showing respect to restaurant staff. Understanding and respecting a server’s role can lead to better service and a more enjoyable dining experience for everyone. Most people go through life trying not to offend others. There are surely some who have ill intent, like those who play slot machine games on their cell phone while on public transportation with the volume turned up, but the majority of us try not to be rude. It’s generally pretty easy to not be an abhorrent person, but there are a few things customers might do at a restaurant that could make the server perceive them as just a teensy bit disrespectful…
