He started Dave’s Hot Chicken with $900: Years later, 19 employees are millionaires after a $1 billion deal | World News
For decades, stories about billion-dollar company sales have typically followed the same pattern. Founders become wealthy, investors celebrate huge returns, and employees often get nothing but praise for their hard work. Most recently, Graham Walker drew attention after it was reported that he shared $240 million with 540 employees following the sale of Fibrebond Corp. to Eaton in a $1.7 billion deal. Before the eventual sale, Walker insisted that 15% of proceeds go directly to employees, even though they did not own shares in the company. The average worker reportedly earns approximately $443,000, creating life-changing financial opportunities for many families in the small town of Minden, Louisiana. Likewise, fast-growing restaurant chain Dave’s Hot Chicken reportedly made 19 employees millionaires after a major investment deal valued the company at nearly $1 billion, according to CNBC’s 2025 report. CEO Bill Phelps said the decision was intentional from the beginning. At a time when many employees feel disconnected from the success of their businesses, the move sparks discussions about loyalty, leadership and how companies reward employees who help build their businesses.
this dave’s hot chicken The deal reportedly made the managers millionaires
A major twist came when private equity firm Roark Capital acquired a majority stake in Dave’s Hot Chicken in a deal reportedly worth nearly $1 billion. Large investment deals like this are common in the restaurant industry, but what happened next surprised many people.According to NRN, Bill Phelps said that 19 employees became millionaires through this transaction. The company also reportedly gave bonuses to company employees, store managers and assistant managers roughly equivalent to their annual salaries. For many workers, this can be a life-changing moment.“I’ve had some investors say, ‘You’re giving too much money, it’s not right,'” he said. “As investors, they are absolutely right to stand up for other investors. They have a fiduciary duty, but I have a duty to the people who built this business, and I genuinely care for all the stakeholders in this deal.”Phelps later explained that some investors were upset about the amount of money being allocated to employees. From a financial perspective, investors often prioritize profit maximization and protecting shareholder returns.
How Dave’s Hot Chicken transformed a $900 startup into a national restaurant giant
Dave’s Chicken didn’t start out as a huge corporate brand. The company was reportedly founded in 2017 when three childhood friends pooled together $900 to open a small chicken stand in a Los Angeles parking lot. At the time, few could have predicted how quickly the business would grow. Customers were attracted by the restaurant’s spicy chicken, simple menu and strong social media buzz. Within a few years, the brand expanded rapidly across the United States and became one of the most talked about fast food chains in the industry.The company’s growth accelerated after Bill Phelps stepped in in 2019. Phelps already had extensive experience in the restaurant business, having co-founded Wetzel’s Pretzels and working with several other food brands. He worked with a group of investors to acquire a stake in Dave’s Hot Chicken and helped franchise the business nationwide.
Bill Phelps reportedly calls his employees ‘partners’
“One of my investors told me I didn’t know what management compensation was supposed to look like,” Phelps said with a laugh. “He’s right because I don’t view them as management. I view them as my partners in this journey and compensate them as partners in this journey.” Phelps said rewarding employees fairly is part of staying loyal to the people who have contributed to Dave’s Hot Chicken from the beginning.Phelps also said he doesn’t believe in micromanaging employees because he trusts people to do their jobs well.
