Dave’s Hot Chicken is hot in every sense of the word.
The chain was recently named America’s Fastest Growing Restaurant Chain by Technomic and currently has more than 700 locations in the pipeline. Dave’s Hot Chicken also has over 200 million organic views on TikTok, has the highest Instagram followers per restaurant of any national fast-casual brand, and has seen sales increase 156% over the past year, according to a press release.
“Dave’s Hot Chicken has one of the greatest origin stories in the restaurant business, with the founders starting Dave’s as a parking lot pop-up restaurant in Hollywood with a portable fryer, and picnic tables from their backyards,” said Bill Phelps, Dave’s Hot Chicken’s CEO, in the release.
“The company’s nearly unheard-of growth rate is a result of the founders’ vision for this brand, the tremendous leadership team we’ve assembled, and the incredible commitment of some of the most experienced franchisees,” Phelps added.
An inspiring story and a popular product are a great start, but that will only take you so far. So, what exactly is this chicken chain doing that makes it so successful? The Food Institute took a closer look with help from industry insiders.
Why is Fried Chicken Still so Popular?
Dave’s Hot Chicken isn’t the only chicken chain that’s finding success. Recently, a number of chicken chains have been making waves when it comes to fast food, including Raising Cane’s and Super Chix. Why is that? According to R.J. Hottovy, Placer.ai’s head of analytical research, it’s the versatility of the protein and the fact that it can be prepared in a number of ways to suit individual preferences.
Dan Rowe, CEO of Fransmart, added that chicken is also one of the most popular proteins.
“Chicken is pervasive and a safe default for anyone trying a new brand,” Rowe told FI. “Hot chicken in particular – like Nashville hot chicken, etc. – is the flavor of the day with chicken, and Dave’s Hot Chicken owns the segment.
“They are the Five Guys of the spicy-chicken segment.”
What Sets Dave’s Hot Chicken Apart?
Savvy business moves have helped put Dave’s on top. Recently, The Wall Street Journal highlighted some of the ways the chain was able to accommodate a $2 an hour wage increase for its employees.
Dave’s didn’t just raise its prices, it found ways to be more efficient and cut back on overhead, such as dispensing sauce packets rather than filling plastic cups for to-go orders.
“Labor costs and availability have long been challenges in the quick-service restaurant industry, so the chain’s efforts to improve efficiency have been smart,” Hottovy said of Dave’s Hot Chicken.
“By implementing automatic dishwashers, grease-extracting machines, and outsourcing chicken marination to external vendors, Dave’s Hot Chicken reduces staffing needs while still enabling crew members to engage with customers.”
What can Other Chains Learn from Dave’s?
Hottovy said that, as operations become increasingly costly and complex, more operators will likely explore automated solutions and other efficiency measures, like those implemented by Dave’s Hot Chicken, to streamline processes and allow crew members to focus on other tasks.
The Food Institute Podcast
When it comes to data in the food-away-from home sector, what are the major challenges and opportunities companies are facing today? Tibersoft’s Chris Hart joined The Food Institute Podcast to discuss how collaboration and data interoperability will be a key theme for the foodservice sector in the years to come.
