California chain cleared to build eateries in state

Dave’s Hot Chicken plans 5 sites, 2 more in Missouri

A deal to bring California-based Dave’s Hot Chicken to Arkansas and nearby Missouri has been inked with some of those new food joints landing in Northwest Arkansas and the Little Rock area.

Morgan Food Groups has entered into a development deal with Dave’s Hot Chicken to initially open seven locations — five in Arkansas and two in Missouri. Nick Morgan, the leader of Morgan Food Groups, said in an interview that the plans for Arkansas include two locations in the Little Rock area, one restaurant in Fort Smith, and one location in Fayetteville with another in the Springdale/Rogers area. Plans are for Missouri include restaurants in Joplin and Springfield.

Morgan said he’s currently scouting sites but does not have any locations locked down. He said the timeline to open restaurants is still flexible since the process of finding sites and opening stores can be easy or become difficult based on a wide variety of factors. The Morgan Food Group operates seven Jersey Mike’s locations and three Marco’s Pizza operations.

“Dave’s Hot Chicken’s product is amazing — it’s really good food,” Morgan said. “It offers great portion sizes, a great price point and simple ordering.”

The concept offers chicken tenders and sliders on a menu with a total of four combos, three sides and seven levels of heat.

“I’ve owned restaurants for over 12 years. It’s a people first business,” Morgan said. “In franchising, it’s like a marriage, and our cultures align.”

Kelly Ann Way, associate professor and area coordinator for the Hospitality Management Program at the University of Arkansas at Fayetteville, in response to emailed questions, said the franchise restaurant industry is hot, with sales in the fast-food segment on the rise and expected to keep going up through 2030. She said take-out and delivery has become increasingly popular after the covid-19 pandemic.

“People paid a bit more attention to their eating habits during covid (as a whole) so we have seen the fast food industry also paying attention to things like additives

in their food as a result,” she explained. “This is an industry that reacts immediately to the public’s purchasing power and will make fast changes when needed.”

Dave’s Hot Chicken started when three friends invested $900 in a pop-up in a East Hollywood parking lot in 2017. The Pasadena, Calif.-based chain has 107 restaurants in operation with plans to open 70 locations in 2024.

Jada Thompson, assistant professor Agricultural Economics and Agribusiness at the Center of Excellence for Poultry Science of the University of Arkansas at Fayetteville, said the fast-food and fast-casual chicken segment has become popular in recent years since the product is adaptable and can be prepared and offered in a variety of ways. Also, the cost is lower compared to beef and it’s generally perceived as more healthy by consumers.

The segment is highly competitive, she said but noted an offering like Dave’s Hot Chicken can differentiate itself on flavor and with customers who are looking for novelty.

“Hot chicken has a bit of a leg up on others in the segment,” she said. … “And they will have the first mover advantage, at least in Northwest Arkansas.”

The trick, she said, as with all restaurants, will be keeping customers coming back for more.

Morgan said Dave’s locations typically are between 2,400 and 2,800 square feet and can seat between 40 and 50 patrons and often have a drive-thru. He said they typically can employ about 80 workers.

He said with his more than a decade in the restaurant industry he’s learned that the restaurant industry is about more than simply the food. He said it’s about the memories and the relationships and stories that result around a good meal.

“You’re not just selling chicken,” Morgan said. “You’re selling an opportunity to connect.”