Digest

Dave's Hot Chicken, a wildly popular fast food chain, started as a pop-up in a parking lot in East Hollywood, California, and quickly gained notoriety for its spicy fried chicken tenders and sandwiches, attracting long lines and media attention. The story begins with Armand Oganesian, a comedian and friend of Dave Capuchin, a chef who had worked at top restaurants in California. Inspired by a Nashville-style hot chicken sandwich they tried at a restaurant called Halen-Rays Hut Chicken, they decided to create their own version. They spent months perfecting their recipe, experimenting with different brines and spices, and even getting feedback from their parents. They initially planned to buy a food truck, but realized they couldn't afford it. Instead, they decided to start a pop-up in a parking lot across the street from Tommy Rubanian's parents' flower shop. They opened with minimal equipment and a few hundred dollars, and quickly gained a following. They were even featured in an article by Farley Elliott, a reporter for Eater LA, which led to a huge increase in customers. They had to adapt quickly, buying a bigger fryer and adjusting their system to handle the demand. They eventually opened their first brick-and-mortar store in East Hollywood, and then a second location. They were approached by John Davis, a founder of Davis Entertainment, who was impressed with their business and wanted to invest. He introduced them to Bill Phelps, a co-founder of Wetzel's pretzels and Blaze Pizza, who also wanted to invest. They decided to create a new franchise company, Dave's Franchise Co., and the investment group took ownership of 42.5% of the company. The founders, Armand, Dave, Tommy, and Gary, became franchisees and continued to open more stores in the Los Angeles area and Las Vegas. The success of Dave's Hot Chicken is attributed to the quality of their food, their efficient operations, and their ability to build hype and keep people coming back. The company's strategy of franchising to experienced groups with multiple stores, along with celebrity investors like Drake and Samuel L. Jackson, helped to secure franchise sales and expand the business rapidly. Dave's Hot Chicken has now grown to over 200 locations in six countries, with plans to reach 900 locations in the next four years. The company's success is a testament to the founders' hard work, their ability to adapt to changing market conditions, and their commitment to providing a high-quality product.

Outlines

00:00:00

Wondery Plus Announcement

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00:01:40

Dave's Hot Chicken: From Parking Lot Pop-Up to Global Chain

This Chapter introduces the story of Dave's Hot Chicken, a fast-food chain that started as a pop-up in a parking lot in East Hollywood, California. The founders, Armand Oganesian, Dave Capuchin, Tommy Rubanian, and Gary Rubanian, share their journey from perfecting their recipe to opening their first brick-and-mortar store and eventually franchising the business.

00:55:22

Dave's Hot Chicken: The Investment That Changed Everything

This Chapter focuses on the pivotal moment when Dave's Hot Chicken received an investment from John Davis, a founder of Davis Entertainment, and Bill Phelps, a co-founder of Wetzel's pretzels and Blaze Pizza. The investment helped the company expand rapidly and solidify its position as a major player in the fast-food industry.

01:01:52

Dave's Hot Chicken: Franchising and Celebrity Investors

This Chapter discusses Dave's Hot Chicken's franchising strategy, focusing on their decision to only franchise to experienced groups with multiple stores. The chapter also explores the role of celebrity investors, such as Drake and Samuel L. Jackson, in the company's success.

01:03:50

Dave's Hot Chicken: Growth and International Expansion

This Chapter delves into the rapid growth of Dave's Hot Chicken, highlighting their current number of locations and their plans for future expansion. The chapter also discusses the company's international ambitions, particularly in Asia, which is a major market for fried chicken.

01:07:04

Dave's Hot Chicken: The Future and the Balance of Corporate and Mom-and-Pop

This Chapter explores the future of Dave's Hot Chicken, considering the company's growing size and the potential for increased corporate structure. The chapter also discusses the unique balance between corporate experience and the founders' entrepreneurial spirit, which has contributed to the company's success.

Keywords

Q&A

• How did Dave's Hot Chicken start?

  Dave's Hot Chicken started as a pop-up restaurant in a parking lot in East Hollywood, California, in 2017. The founders, Armand Oganesian, Dave Capuchin, Tommy Rubanian, and Gary Rubanian, were inspired by a Nashville-style hot chicken sandwich they tried at a restaurant called Halen-Rays Hut Chicken.

• What was the key to Dave's Hot Chicken's early success?

  Dave's Hot Chicken's early success was due to a combination of factors, including the quality of their food, their efficient operations, and their ability to generate hype and media attention. They quickly gained a following after being featured in an article by Farley Elliott, a reporter for Eater LA.

• How did Dave's Hot Chicken secure investment and expand?

  Dave's Hot Chicken received an investment from John Davis, a founder of Davis Entertainment, and Bill Phelps, a co-founder of Wetzel's pretzels and Blaze Pizza. The investment helped the company expand rapidly and solidify its position as a major player in the fast-food industry.

• What is the significance of Dave's Hot Chicken's franchising model?

  Dave's Hot Chicken's franchising model has been instrumental in their rapid expansion. By granting individuals or groups the right to operate a business under their name and system, they have been able to expand to over 200 locations in six countries without having to invest in new locations themselves.

• What role did Los Angeles play in Dave's Hot Chicken's success?

  Los Angeles played a crucial role in Dave's Hot Chicken's success. As a media capital, it provided the company with a platform to gain exposure and build a following. Additionally, Los Angeles is a major hub for food trends, and Dave's Hot Chicken helped to popularize Nashville-style hot chicken nationwide.

• How did celebrity investors contribute to Dave's Hot Chicken's success?

  Celebrity investors like Drake and Samuel L. Jackson helped to give Dave's Hot Chicken credibility and attract attention from a wider audience. Their investment also helped to secure franchise sales, as large franchise groups were more likely to invest in a concept backed by well-known names.

• What are Dave's Hot Chicken's plans for international expansion?

  Dave's Hot Chicken is looking to expand internationally, particularly in Asia, which is a major market for fried chicken. The company is currently in talks with potential partners to franchise their brand in the region.

• How does Dave's Hot Chicken balance corporate structure with its entrepreneurial spirit?

  Dave's Hot Chicken has a unique balance between corporate experience and the founders' entrepreneurial spirit. The company has experienced investors like Bill Phelps and John Davis, who bring expertise in franchising and scaling businesses. At the same time, the founders, who are relatively young and have a strong understanding of consumer trends, provide a fresh perspective and keep the company grounded.

Show Notes