Dave’s Hot Chicken is considering a sale of its European franchise operations, reported Bloomberg, citing sources.
The UK and European rights are held by Azzurri Group, a private equity-owned British hospitality business known for the Zizzi and Coco di Mama restaurant brands.
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According to sources, Azzurri is working towards a potential sale process later this year, adding that the talks are confidential.
The fried chicken chain backed by Canadian hip-hop artist Drake, who acquired a minority interest in Dave’s Hot Chicken in 2021 as part of a broader pattern of high-profile figures taking stakes in fast-growing food chains.
Other investors linked to the business include R&B singer Usher and actor Samuel L Jackson.
Dave’s Hot Chicken began in 2017, when three friends launched the concept from an East Hollywood car park, and it has since expanded internationally.
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By GlobalDataThe menu centres on Nashville-style chicken, including sliders, spicy tenders and crinkle-cut chips, with heat options running from mild to the intense “reaper”.
Ownership in the wider brand has also evolved.
Roark Capital, the investment entity associated with Dunkin’ and Arby’s, agreed last year to take a controlling stake in Dave’s Hot Chicken.
Azzurri secured master franchise rights for the UK and Ireland in 2024, with an ambition to open up to 60 locations.
It then obtained exclusive rights across ten European territories the following year, according to its annual report.
Azzurri is controlled by private equity business TowerBrook, which signed a deal in 2020 to take over the restaurant investor via a pre-pack administration after the business was hit by Covid-related disruption.
A TowerBrook spokesperson declined to comment on the possible transaction.
The potential franchise sale comes amid broader deal activity in the quick-service chicken segment.
In December 2024, Sixth Street secured a majority stake in the UK franchise of Wingstop for more than £400m ($535m) after a competitive process. According to parties familiar with the deal, other parties interested in the stake included KKR & Co., TSG Consumer Partners and London-listed Domino’s Pizza Group.
