For almost a decade we have covered founders who primarily build the next wave of innovation in technology. But some of the jaw-dropping startup stories come from places people tend to overlook: food stands, delivery counters, and parking pop-ups.
Today’s story doesn’t include AI, SaaS, or venture funding. But it sells for nearly $1 billion to $900 investments, Fryers and Fried Chicken Empire.
It tells the story of three founders who went from $900 to $1 billion. VCS, no rules.
This was not a Silicon Valley rocket with a pitch deck. There are no accelerators. Just late at night, I rented a table and a chicken that was hit hard.
Sometimes spreadsheets don’t tell stories. All you really need is stubborn ideas, a parking lot and a little pickled juice.
In 2017, Arman Oganesyan was 24 years old and did a stand-up comedy for $50 a night. There is no business background. I have no experience in a restaurant. But he had an idea. Nashville Hot Chicken was sold in Los Angeles.
His friend Dave Kopshuin was a chef trained in French laundry and wasn’t exactly excited.
“Chicken? First of all, I don’t like chicken,” he told Oganesyan.
Eventually, he came. So did their third co-founder, Tommy Levenia. Together they saved $900 in savings, rented a table from their parents, bought a $150 flyer, and set up a naked chicken stand in an East Hollywood car park.
They called it Dave’s Hot Chicken.
Night One? They made $40 from four meals. But five days later, a local food critic stopped by. The next night, the lines began to form. Within a few weeks they were selling out every night. Within two months, each founder brought back $10,000 in cash.
“It was the most money I’ve ever seen,” Ogeneshuan said.
Secret recipe? Chaos and pickle juice
Their process was unattractive. They learned about brainstorming flavor combinations at Kopushyan’s Kitchen, a taste test competitor like fried chicken documentary Howlin’Ray’s.
One idea – serving gummy bears with chicken – was quickly discarded. However, another thing discovered by chance is salted pickled juice. It happened when someone threw the remaining chicken into an almost empty pickle jar. The flavor worked.
“Many doubtful beliefs” is how Ogenjan described his early days.
Simplicity has become the brand: spicy chicken tender, fries, coleslaw, toast. There is no fluff. Just heat it.
The right person noticed
A year later, they bring in Gary Levenia (Tommy’s brother) to help open the first storefront. Then, in 2019, a turning point hit: a group of celebrity investors joined the mix.
The new roster included Samuel L. Jackson, Michael Strahan, Red Sox owner Tom Werner, and film producers John Davis and Bill Phelps.
The franchise continued. And global expansion.
From pop-ups to great powers
Under CEO Bill Phelps, Dave’s hot chicken grew rapidly. Locations opened in the US, Canada, the UK and the Middle East.
In 2023, the brand reported more than $600 million in system-wide sales, up 57% from the previous year. This year, they are projecting $1.2 billion.
According to COO Jim Bitticks, the company is “very” profitable at both the franchise and corporate level.
Then came the billion dollar moment
This week, Private Equity Firm Roark Capital, the same company behind Dunkin’, Subway and Arby’s, acquired a majority stake in Dave’s Hot Chicken.
Although exact financial terms have not been disclosed, CEO Phelps told CNBC that the deal was “very close” to $1 billion.
Oganesyan, Kopushyan, The Rubenyan Brothers and Phelps all remain as minority owners and continue their current roles.
“What we did is insane,” Phelps told CNBC. “Arman Ogenjan was the founder. He was a high school dropout, but a marketing genius. He made all this into his mind.”
No deck, VC, no issues
This is not your usual founder playbook. There was no app. There are no angel rounds. There are no billion-dollar TAM slides. A few friends, a flyer, and bold enough to stand outside without hot chicken and a backup plan.
Sometimes the biggest exits don’t come from Tech. Sometimes they come from ideas that most people laugh at. And here is a recipe that most people never saw coming.
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