Dave’s Hot Chicken, an emerging Los Angeles-based fast casual brand that serves Nashville Hot Chicken, signed three multi-unit franchising agreements in Northern California, Portland, Oregon and Denver in April.
The brand now has 100 additional units in development.
“It’s with great pride that we get to welcome three veteran groups to our team,” Shannon Swenson, Vice President of Franchise Development at Dave’s Hot Chicken, said in a statement. “The energy and experience these operators bring to our brand is exceptional. While the restaurant industry as a whole is going through a transition, our commitment to developing our cult-like following in communities throughout the country has not waivered. The momentum is continuing to build, and we couldn’t be more excited for these groups to start developing.”
George Almeida, with more than 30-years of franchising experience, signed a seven-unit deal with plans to grow the brand through Alameda and Contra Costa counties in Northern California. In Portland, Alex and Joe Karcher, who own several Carl Jr.’s, Jersey Mike Subs and The Human Bean coffee shop locations in the area, will open five units.
Jason Beld and Marc Rogers, the duo that brought Fuzzy Tacos to Colorado, plan to open 11 units in Denver.
Lessons learned from COVID-19
Dave’s Hot Chicken transitioned well to off-premises dining thanks to how quickly its employees adapted and innovated during the pandemic, CEO Bill Phelps said. Before COVID-19, off-premises dining accounted for approximately 35-56% of business.
To better serve customers, the brand plans to install walk-up windows for takeout and partner with third-party delivery providers in all future locations. In addition, 40-60% of new units will have a drive thru.
Takeout fried chicken is expected to reach a value of $8.3 billion by 2025, expanding at a compound annual growth rate (CAGR) of 5.47% during that period, a December 2019 report from Market Research Future predicted.
Dave’s Hot Chicken began in 2017 as a pop-up concept serving Nashville Hot Chicken with spice levels ranging from “No Spice” to Reaper,” opening its first physical restaurant in January 2018. Dave’s Hot Chicken currently operates three locations located in Los Angeles and Hollywood, California.
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