Arman Oganesyan, co-founder of Dave's Hot Chicken, shares the journey of starting a spicy chicken tenders pop-up in East Hollywood that grew to 200 stores. They discuss the challenges of scaling, finding franchise partners, investment meetings with celebrities, and maintaining a balance between hard work and luck in business success.
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Quick takeaways
Starting as a small pop-up, Dave's Hot Chicken grew into a 200-store chain nationwide.
Introducing sliders and sandwiches expanded menu options and sustained customer loyalty.
Facing challenges like long lines, transitioning to franchising, and securing investments for exponential growth.
Deep dives
Building the Foundation
Starting a pop-up chicken stand in a parking lot led to the birth of Dave's Hot Chicken. Founders Dave and Armand worked tirelessly on their recipe, experimenting with brines and flavors to create their signature Nashville-style hot chicken tenders and sandwiches.
Managing Unexpected Success
After the pop-up received attention from 'Eater LA,' lines at the stand grew exponentially. The team adapted quickly, purchasing a bigger fryer to meet demand. The strategic introduction of sliders and sandwich options expanded their menu, sustaining interest and customer loyalty.
Operational Challenges and Gratitude
Creating a successful pop-up brought daily challenges like long lines and operational efficiency. Their partnership with the parking lot owner evolved as the business grew, leading to a transition into a more structured and rent-paying arrangement as they scaled their operations.
From Pop-up to Brick and Mortar Success
Transitioning from operating a pop-up chicken sandwich business at Tommy's house, the founders faced the labor-intensive process of prepping food, including individually tending to each tender. Despite initial doubts from parents on profitability, the venture earned them significant profit, marking a life-changing moment. A mishap where their cash ended up in the trash exemplified the challenges and rewards of running a growing business.
Franchising and Scaling Up
With rapid success and profit growth, the founders navigated the transition to franchising their business. Strategic partnerships with experienced individuals like Gary and legal advice from Rafi Babayan streamlined their expansion plans. Investments from celebrities and seasoned investors like John Davis and Bill Phelps paved the way for exponential growth, with international expansions on the horizon and a clear focus on maintaining quality and franchise partnerships.
Dave’s Hot Chicken began as a tiny pop-up, selling spicy chicken tenders and fries from a tent in East Hollywood. Their homemade take on Nashville Hot Chicken was an overnight sensation in a city that had barely heard of it, and within days, co-founder Arman Oganesyan and his partners were working frantically to serve the long lines out front. Since launching seven years ago, the pop-up has grown into a chain of 200 stores, with franchises across the country, and a beloved rubber chicken mascot.
This episode was produced by Sam Paulson with music by Ramtin Arablouei.
It was edited by Neva Grant with research help from Katherine Sypher. Our audio engineers were Robert Rodriguez and Patrick Murray.