How does a restaurant chain go from parking lot startup to $1 billion valuation in less than a decade?

This week’s episode of A Deeper Dive focuses on the recent sale of Dave’s Hot Chicken to Roark Capital. It features the fast-casual chain’s CFO, James McGehee, and SVP of Finance Scott Putman. 

Dave’s Hot Chicken was founded in a Los Angeles parking lot—yes, a parking lot—by four friends in 2017. 

They got favorable local reviews and the concept took off. It brought in investors and professional management and took advantage of a consumer that wants a lot more chicken and spicier options. 

Dave’s has been one of the fastest-growing restaurant chains in the U.S. over the past several years, including nearly 60% system sales growth last year, according to Technomic. And it earned the company a $1 billion sale to the private-equity firm Roark Capital.

While some industries such as technology can reach $1 billion valuations in a hurry that kind of growth is nearly unheard of in the restaurant space. 

We explore exactly how a company can achieve that kind of success, that quickly. Check it out.