Dave's Hot Chicken explores $1 billion sale amid restaurant pressures

Dave's Hot Chicken, backed by rapper Drake, is considering a sale that could value the chain at about $1 billion, as it engages investment bank North Point for the process. This comes amid rising labor costs and inflation challenges that have prompted many restaurants to increase menu prices. Despite these economic pressures, Dave's has thrived, operating over 250 locations and generating approximately $1 billion in annual sales. Founded in 2017 with a modest investment, the chain has attracted notable investors and has expanded its franchised business model significantly. The U.S. restaurant sector remains attractive for private equity, as evidenced by recent investments in restaurant chains. Additionally, Dave's continues to grow its presence, with new openings planned in various locations including Olathe, Kansas, and Boston, Massachusetts.