How does a restaurant chain go from parking lot startup to $1 billion valuation in less than a decade?

This week’s episode of A Deeper Dive focuses on the recent sale of Dave’s Hot Chicken to Roark Capital. It features the fast-casual chain’s CFO, James McGehee, and SVP of Finance Scott Putman. 

Dave’s Hot Chicken was founded in a Los Angeles parking lot—yes, a parking lot—by four friends in 2017. 

They got favorable local reviews and the concept took off. It brought in investors and professional management and took advantage of a consumer that wants a lot more chicken and spicier options. 

Dave’s has been one of the fastest-growing restaurant chains in the U.S. over the past several years, including nearly 60% system sales growth last year, according to Technomic. And it earned the company a $1 billion sale to the private-equity firm Roark Capital.

While some industries such as technology can reach $1 billion valuations in a hurry that kind of growth is nearly unheard of in the restaurant space. 

We explore exactly how a company can achieve that kind of success, that quickly. Check it out. 

Why doesn’t Handel’s Homemade Ice cream have an app?

This week’s episode of the Restaurant Business podcast A Deeper Dive features Jennifer Schuler, CEO of the Ohio-based Handel’s Homemade Ice Cream.

This is a great conversation. Handel’s was founded in Youngstown Ohio in 1945. It has been franchising for decades. But it has taken off last year—sales rose 38%.

Schuler was named CEO early last year and we wanted to talk with her about the brand and its strategies. 

We talk about the chain’s extensive menu of ice cream flavors and how it trains franchisees to make that ice cream on site. 

We also talk about the need for hospitality in that business and specifically why that chain doesn’t have its own mobile app. We also talk about why brands thrive when they focus more on hospitality. 

We’re talking ice cream on A Deeper Dive so please check it out. 

Why is La Madeleine adding more fireplaces? 

This week’s episode of the Restaurant Business podcast A Deeper Dive features John Dillon, CEO of the Dallas-based fast-casual chain La Madeleine. 

This is the last in our series of podcast episodes recorded during the National Restaurant Show in May. 

La Madeleine operates 91 locations, mostly across the South. Dillion was named CEO of the chain earlier this year.

He talks about the need for more hospitality and in-store business in the restaurants, which is increasingly vital these days. That’s why the company has decided to ensure all new restaurants have fireplaces. 

We talk about Dillon’s history with the brand, his reaction when he got the job, the music in the dining room and the French lessons in the bathroom. We also talk about value and numerous other topics.

We’re talking French lessons on A Deeper Dive so please check it out. 

How does a 106-year-old brand keep customers coming back? By tapping into nostalgia.

This week’s episode of the Restaurant Business podcast A Deeper Dive features A&W CEO Betsy Schmandt. 

This is the latest in our series of podcasts recorded during the National Restaurant show.

This is a great conversation. We wanted to get to know Betsy, who was named chief executive of the chain earlier this year.

A&W was founded in 1919, making it one of the oldest restaurant chains in the country. Betsy talks about that history and we talk about some of the memories we’ve had visiting the concept growing up. Schmandt discusses why that works for the brand and how the company plans to tap into consumer nostalgia.  

We also talk extensively about hospitality and why consumers today expect a lot more from their restaurants—and what A&W is doing about it. We also talk about the chain’s history of drive-ins and we talk about ways the company is adding technology into its restaurants. Betsy reveals a few things in that part of the conversation. 

We’re talking A&W on A Deeper Dive so please check it out. 

What’s the story behind the growth chain Mo’Bettahs?

This week’s episode of the Restaurant Business podcast A Deeper Dive features Rob Ertmann, the CEO of the fast-growing Hawaiian-style chain Mo’Bettahs.

This is the latest in our series of podcast episodes recorded at the National Restaurant Show in May. 

We wanted to talk with Ertmann to get the story behind Mo’Bettahs, which is one of the industry’s more fascinating growth concepts. The company grew system sales 30% last year, according to Technomic.

We talked about the chain’s history and how it’s been able to fund its growth. We talk about growth plans and what kind of barriers are standing in the way of that growth. We also touch on a variety of other topics, including tariffs, traffic, portion sizes and what’s popular today.

It’s a wide-ranging episode on the podcast this week so check it out.

How do you take a 56-year-old brand into the future?

This week’s episode of the Restaurant Business podcast A Deeper Dive features Heather Neary, the CEO of the fast-food Mexican chain Taco John’s.

This is our latest in a series of podcast episodes recorded from the National Restaurant Show in May.

Neary took over as CEO of Taco John’s last year. We speak with her about what she’s done over the past year-plus on the job.

We were particularly interested in the company’s technology initiatives, including its voice-activated drive-thru AI test. We talk with Neary about how well it works, how it benefits Taco John’s and what the company does with the labor that no longer has to take orders.

Neary discusses the company’s franchising strategy and its expansion plans. She also talks about the chain’s menu development efforts.

We’re talking tacos on A Deeper Dive so please check it out.

What’s the next step for the owner of Krystal?

This week’s episode of the Restaurant Business podcast A Deeper Dive features Josh Kern, the CEO of the multi-brand restaurant operator SPB Hospitality, which owns several different chains.

This is the latest in a series of podcast episodes that we recorded during the National Restaurant Association Show last month. 

SPB Hospitality owns and operates a wide range of restaurants, including the fast-food concept Krystal, the casual-dining brand Logan’s Roadhouse and the upscale casual brand J. Alexander’s. 

Kern talks about the brands and how they’re doing. He also talks about operating a multi-brand company and how it can run both full-service and limited-service concepts. 

He also talks about the company’s future strategy, and whether it plans to keep all these brands or whether it plans to put one or two of them on the market. 

How does Velvet Taco come up with its recipes?

This week’s episode of the Restaurant Business podcast A Deeper Dive features Clay Dover, CEO of the fast-casual taco chain.

This is the latest in a series of podcasts we recorded at the National Restaurant Show. 

Velvet Taco is a rapidly growing chain of taco shops. It finished 2024 with 49 locations and grew sales nearly 22%, according to data from Restaurant Business sister company Technomic.

The chain’s menu is more unique than a simple taco shop. You might go to one of the restaurants and be greeted with a Bacon Smashburger Taco or a Paneer Taco. And there are the WTF tacos, or weekly taco feature. We wanted to know how the brand develops these tacos and why that has helped the brand do things that perhaps other concepts cannot do.

We also talk about other issues, including the chain’s growth and its plans for international development and what Dover sees as the biggest barriers to growth right now.

We’re talking tacos on A Deeper Dive so please check it out.

How should marketing change in the era of AI?

This week’s episode of the Restaurant Business podcast A Deeper Dive features Kyle Drenon, the CEO and co-owner of Supper Co., a marketing firm that works with restaurants and other hospitality industries. 

This is part of a series of podcasts we recorded at the National Restaurant Show last month and it is a good one.

We wanted Kyle on the podcast to talk about AI, and specifically its impact on marketing and how people look for your restaurant. 

Kyle provides some sobering data on the impact AI is having on web traffic to normal, everyday websites.

We talk about what that actually means for restaurant companies. And then we talk about how those restaurant companies can adapt by marketing with short-form video.

We’re talking AI and marketing on A Deeper Dive so please check it out. 

Why are restaurant chains introducing so many limited-time offers?

This week’s episode of the restaurant finance podcast A Deeper Dive features Katie Belflower, manager of menu research and insights with Restaurant Business sister company Technomic. 

This is part of a series of podcasts we recorded during the recently concluded National Restaurant Association Show.

We wanted to talk with Belflower about the shocking number of limited-time offers, or LTOs, restaurant chains have been pushing recently. The industry introduced a record number of LTOs last year, and she helps explain why. 

We talk about the impact social media is having on restaurants’ need for more innovation and whether weak traffic is forcing more companies to push new items. But we also talk about the risks associated with so many LTOs.

And we also talk a bit about menu pricing.

We’re talking limited-time offers on A Deeper Dive so check it out.