Dave’s Hot Chicken: From Humble Beginnings to Fiery Success
Dave’s Hot Chicken started out in an East Hollywood parking lot with a budget of just US$900 back in 2017.
Now, the brand is synonymous with fiery, flavour-packed chicken – proving that big dreams often have humble beginnings.
This story of grit and determination highlights the meteoric rise of a brand that has become a household name in just a few short years- enabled largely by technology.
From its humble food stand beginnings, Dave’s Hot Chicken has transformed into a fast-growing international phenomenon, captivating taste buds and winning over fans across the globe.
Early on, authenticity and excellence spoke for itself at Dave’s Hot Chicken. The brand’s commitment to delivering mouth-watering spicy chicken proved to be an irresistible draw for food lovers. The buzz around Dave’s began spreading by word of mouth and soon it became clear that there was something special about this hot chicken spot. The brand's momentum picked up steam in 2019, when a partnership with investors, including Bill Phelps, former CEO of Wetzel's Pretzels, as well as film producer John Davis, set the stage for rapid growth.
By 2021, Dave’s Hot Chicken had more than 30 locations in states including Colorado, Texas and Ohio and further expanded into Wisconsin, Florida and New Jersey in 2022. This marked a critical turning point for the brand. As the restaurant chain scaled up, it became clear that Dave’s was ready to compete with other major fast-casual chains. The move from being a regional phenomenon to becoming a national powerhouse was a significant milestone. The company then set its sights even higher, expanding internationally with locations in Toronto, Dubai, Doha and Riyadh. The global appeal of Dave’s Hot Chicken, with its unique spice levels and crave-worthy flavours, proved that the brand’s popularity wasn’t confined to U.S. borders. With the UK next on its list, it is clear that Dave's ambitions are truly global.
Leon Davoyan, Chief Technology Officer at Dave's Hot Chicken, is well placed to discuss the organisation’s ongoing global transformation. With responsibility for ensuring the brand leads the way when it comes to tech and innovation, Leon’s own career had beginnings not unlike Dave’s founders.
He began in hospitality at Universal Studios in 1994, before quickly venturing into the Point of Sale (POS) department at a time when POS systems were “very new”.
“Since then, I've just been down this career journey of working for high growth companies, be that it's a QSR brand or a quick casual brand that wants to grow 50 to a hundred stores a year,” Leon adds. “Or even if they’re a bespoke fine dining or nightclub location that wants to just grow their brand very quickly, but obviously at the rate of one or two locations a year. That's what I just fell into specialising in and is what got me to the CTO position here at Dave's Hot Chicken.”
This early exposure to emerging technology laid the groundwork for his passion and, over the years, he has taught himself everything he knows.
Navigating fast-paced technological transformation
Technology has played a vital role in Dave's Hot Chicken's rapid growth.
Recognising the swift evolution of tech, especially AI, the company built its systems to be reliable, adaptable and open to integration.
Leon stresses the importance of investing in technology that aligns with the company's future goals: "People ask me, ‘how do you grow a company so quickly?’. And my answer is always to invest in the right solution for where you're going, not for right now."
This forward-thinking mindset led to Dave’s Hot Chicken upgrading its POS system to manage increasing data needs.
Despite initial staff scepticism, the switch to a system with a robust database and API has not only streamlined operations but also set the company up for ongoing success.
Of course, navigating the ever-changing tech world is not without its challenges. "Technology is evolving so quickly that, even when you make a decision, by the time you've implemented it, there are probably 10 other solutions that are better," Leon acknowledges.
He believes in decisive action but also in the courage to pivot if needed. Doubling down on bad decisions is simply not an option.
"If we don't evolve, especially today, you're going to be left behind,”
Leon continues. “When you make the wrong decision, raise your hand, talk to your leadership and pivot. Just forget it and move on.”
Despite its technological focus, Dave’s Hot Chicken remains rooted in its simple mission: to “blow your mind” with its selection of spicy tenders and sliders.
With a menu ranging from 'No Spice' to 'Reaper,' the aim is to deliver unforgettable flavours.
"Even if you just take a tiny bite, you have to taste the Reaper," Leon dares.
With more than 230 locations launched over the course of just two years, Dave's Hot Chicken is primed for the future.
Leon likens building its tech infrastructure to constructing a house.
“You have to have a really strong and solid foundation," he explains.
“Otherwise, when you build things on top of that foundation, you might be successful,
but eventually it's gonna crack and things are gonna start crumbling.”
With this strong foundation in place, he believes the company is ready for the next wave of innovation.
Expanding and innovating for the future
Dave’s Hot Chicken is stepping into the future with its new Web3.0 ordering portal.
For Leon, Web3.0 signifies a move toward a more immersive and interactive digital environment.
“Web1 shifted news from traditional media and introduced e-commerce," he reflects. “Web2 connected us through social media.”
He paints a vivid picture of a future where virtual meetings and events become the norm. "Web3.0 will make us all couch potatoes," he jokes, envisioning a world where people can attend board meetings from their living rooms. But even in this increasingly virtual realm, "a couch potato is still going to get hungry.”
Looking ahead, Leon is “absolutely thrilled” about the brand’s upcoming UK expansion: "When we open that first location, expect a grand affair with a massive celebration."
The company is also working on major upgrades to its KDS system and developing a new mobile app, setting the stage for what Leon describes as "groundbreaking developments" over the next 12 to 18 months.
These initiatives are designed to enhance customer experience and streamline operations, keeping the brand ahead in a competitive market.
Meanwhile, strategic partnerships play a crucial role in Dave’s Hot Chicken's approach to growth and innovation.
Loop, a key partner that tackles significant challenges with third-party delivery services, manages delivery connections and resolves issues automatically.
“Loop is a unicorn for us. If it's not the top vendor that we have then it's definitely in the top three. It solves a very giant pain point that we've had in the restaurant industry since the inception of third party delivery providers. It essentially solves 100% of the problem for us, which is a tall order.”
"If a connection drops, Loop’s algorithm identifies and rectifies the problem, often before we even realise," Leon notes.
Financial reconciliation is another area where Loop's solutions shine. Given the complex commissions and fees from third-party delivery providers, Loop helps Dave’s Hot Chicken decode these statements and reconcile them.
"They’ve also been crucial in tackling fraud and recovering revenue lost from delivery errors," Leon continues. “These partnerships are not just about technology but also about enhancing operational efficiency and ensuring customer satisfaction.”
Similarly, data analytics lies at the heart of Dave’s Hot Chicken's strategy.
The company’s Customer Data Platform (CDP) provides detailed insights into customer behaviour, allowing for more refined strategies and an improved overall customer experience.
By leveraging this data, the company makes informed decisions that directly enhance customer engagement.
Expanding this data strategy will be critical as Dave’s Hot Chicken continues to scale. Every piece of information gathered helps the brand understand its customers better, tailor experiences and fine-tune its operations. In today’s data-driven world, this type of insight is invaluable. By building on these capabilities, Dave’s Hot Chicken is set to remain ahead of the curve as the food industry continues to evolve.
Leon also sees AI as a game-changer for the industry.
"AI is often dismissed as a buzzword, but it’s set to revolutionise everything," he asserts.
Real-time data insights provided by AI will reshape how decisions are made, allowing GMs and shift leads to optimise restaurant operations quickly and effectively.
This shift towards agile and responsive business strategies will also extend to marketing, where AI's real-time insights will enable the company to act faster than traditional analysts.
With Leon’s tech-driven leadership, Dave's Hot Chicken is embracing AI, Web3.0 and important strategic partnerships and is well placed to navigate the fast-changing landscape of the food industry.
Dave’s Hot Chicken doesn’t just serve meals; it represents a fiery journey from parking-lot dream to spicy global favourite.
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