Bill Phelps, the 69-year-old CEO of the beloved brand, recently grabbed some headlines. He touted that 19 employees were now millionaires after a recent acquisition deal valued at “close to” $1 billion. This momentous event took place when private equity firm Roark Capital acquired a majority stake in Dave’s, a popular fast-casual dining chain known for its spicy chicken offerings.
Phelps, who has an extensive background in the franchise business, became the CEO of Dave’s in 2019 after joining an investor group that aimed to expand the brand through franchising. His background includes co-founding Wetzel’s Pretzels in 1994 and serving on Blaze Pizza’s board of directors until 2020. Under his leadership, Dave’s Hot Chicken has not only grown in popularity but in value, culminating in this significant financial milestone.
The subsequent acquisition by Roark Capital was structured as a way to reward employees for their role in creating a highly successful company. In a move that surprised many, every corporate employee, store manager, and assistant manager received a bonus equivalent to their yearly salary as part of the deal. Phelps emphasized that he derives fulfillment from helping others achieve financial success, stating, “I look at them as my partners in this journey, and I compensate them as partners in the journey.”
On the award, Phelps had glowing praise for Oganesyan and his fellow founders for their commitment and passion. He understood that their work was indispensable to the company’s ascent. He expressed pride in being able to create millionaires intentionally through the acquisition, stating, “People were going crazy in the company because they had never thought of so much money.” That optimism is real, and it speaks to the transformative effect the deal has had on thousands of workers’ lives.
On June 2, Phelps made the surprise announcement in an on-air interview with CNBC’s “Squawk Box”. He stressed just how important the acquisition was and what it would mean for their workforce. His approach to management is characterized by trust. He does not micromanage employees but rather empowers them to excel in their roles.
“I was told by one of my investors that I had no concept of what management compensation should look like,” Phelps remarked, highlighting his unconventional approach to employee compensation and management structure. This commitment has created a strong collaborative and succeed-together culture within the company.
The enthusiasm around the acquisition has been contagious among employees. Oganesyan noted that some individuals entered the situation with skepticism, saying, “A lot of people came in with this energy of, ‘you guys got really lucky and you don’t know what you’re going to do with this.’” To this reaction, we note how surprising even they find the financial windfall just made possible for many of the people involved with the company.