The Fried Chicken Chain That's Owned Buy The Same Company As Subway

The number of fast food options these days is overwhelming. From the typical burger joints and taco spots of yesteryear, a nearly endless variety of sandwich shops, salad purveyors, and fusion-inspired bowl sellers has emerged. However, the secret behind this ever-changing industry is that there are often single corporate conglomerates behind multiple chains that might appear to be competitors. An excellent example of this is sandwich giant Subway, which shares a common owner with fried chicken chain Dave's Hot Chicken.

Both Subway and Dave's are owned by Roark Capital, a private equity firm with tens of billions of assets under management. They're two parts of the firm's wide-ranging food presence, which also includes investments in Arby's, Cinnabon, Culver's, and Moe's Southwest Grill, among others. Dave's isn't even the only chicken-focused brand under the Roark Capital umbrella. Roark also has Buffalo Wild Wings in its portfolio, while Subway exists under the same investment backing as rival Jimmy John's.

Dave's Hot Chicken offers a distinctly different menu than its corporate cousin, focusing on fried chicken tenders, sliders, fries, and other Southern-style sides, such as kale slaw. Although it's not necessarily health food, Subway's "Eat Fresh"-focused branding offers a more balanced mix of proteins, vegetables, and other toppings.

There's no doubt that Dave's Hot Chicken is less well-known than sandwich giant Subway, which has the most franchise locations of any U.S. fast food chain. Dave's grew from humble roots in 2017, operating out of a parking lot before word of mouth helped it expand into a brick-and-mortar location and then become the fast-growing company it is today. In comparison, Subway has been around for six decades, becoming an influential part of American fast food culture along the way. However, both followed a similar path from a closely-held small company operated by founders to a big-name franchise player.

This shared ownership arrangement isn't anything unusual for the fast food industry. Powerhouse food company Restaurant Brands International controls Burger King and several other major chains. Meanwhile, high-profile mergers have been among the defining storylines of the food industry over the past quarter of a century.