From Wetzel’s Pretzels to Dave’s Hot Chicken: The Rise of CEO Bill Phelps

Dave’s Hot Chicken, the fast-casual sensation known for its fiery Nashville-style chicken, has exploded in popularity since its humble beginnings in 2017. But behind its rapid expansion is a seasoned franchise expert: CEO Bill Phelps, the man who helped turn a parking lot stand into a nationwide brand.

Who Is the Owner of Dave’s Hot Chicken?

Dave’s Hot Chicken was founded in 2017 by three childhood friends—Arman Oganesyan, Tommy Rubenyan, and Chef Dave Kopushyan—who pooled $900 to start a tiny chicken stand in Los Angeles. However, the brand’s explosive growth came after an investor group led by Bill Phelps acquired a stake in 2019.

Phelps, a franchise industry veteran, had previously co-founded Wetzel’s Pretzels in 1994 and served on Blaze Pizza’s board until 2020. His expertise in scaling quick-service restaurants made him the perfect leader to franchise Dave’s Hot Chicken.

Who Has Stake in Dave’s Hot Chicken?

Phelps became CEO in 2019 after his investor group took a significant stake in the company. While the exact financial details remain private, the move was part of a strategic plan to expand Dave’s Hot Chicken through franchising.

The brand’s early success attracted numerous investors, but Phelps stood out because he respected the founders’ vision. As co-founder Arman Oganesyan recalled, many investors dismissed the founders’ efforts as luck, but Phelps recognized their hard work and rewarded them accordingly.

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Dave’s Hot Chicken Acquired by Roark Capital in Near-$1 Billion Deal, Creating 19 Employee Millionaires

In a blockbuster deal that underscores the brand’s meteoric rise, private equity giant Roark Capital acquired a majority stake in Dave’s Hot Chicken in early June 2024. The transaction, valued at “close to $1 billion,” instantly turned 19 employees into millionaires—a deliberate move by CEO Bill Phelps to reward the team that helped build the company.

The Acquisition Details

Phelps confirmed the deal on CNBC’s Squawk Box on June 2, revealing that Roark Capital—known for investments in Inspire Brands (parent of Dunkin’, Arby’s, and Buffalo Wild Wings)—now holds controlling interest in the Pasadena-based chain. While exact terms were undisclosed, the near-billion-dollar valuation reflects Dave’s explosive growth from a 2017 parking lot stand to a 140+ location franchise in just seven years.

How Employees Benefited—Generously

True to Phelps’ employee-first philosophy, the deal included life-changing payouts for staff at all levels:

• 19 employees became millionaires (including corporate team members and early franchise operators).

• Every corporate employee, store manager, and assistant manager received a bonus equal to their annual salary, per COO Jim Bitticks.

Phelps faced pushback from some investors who argued he was “giving away too much money,” but he stood firm:
“They have a fiduciary duty, but I have a duty to the people that created this business,” he told CNBC Make It. “I was true to taking care of all stakeholders in this deal.”

A Leadership Style Built on Trust & Generosity

Phelps’ leadership philosophy centers on empowering employees rather than micromanaging. He believes in paying his team “generously” and treating them as partners rather than just staff.

“I was told by one of my investors that I had no concept of what management compensation should look like,” Phelps said with a laugh. “And he’s right, because I don’t look at them as management. I look at them as my partners.”

This approach mirrors that of other successful CEOs, like Mark Cuban, who turned employees into millionaires after selling Broadcast.com, and Jay Chaudhry of Zscaler, who did the same with SecureIT.

Conclusion

Bill Phelps’ journey from Wetzel’s Pretzels to Dave’s Hot Chicken showcases how experience, trust, and smart investments can turn a small idea into a booming franchise. His leadership style—prioritizing employees and founders alike—sets a blueprint for sustainable success in the competitive fast-food industry.