Private-equity firm Savory Fund on Wednesday announced its newest restaurant investment, into Las Vegas-based fast casual Houston TX Hot Chicken (HHC).
HHC, founded in 2021 by Edmond Barseghian, has 11 locations, six of which are franchised, in six states: Arizona, California, Idaho, Nevada, Texas, and Utah. In addition to hot-chicken sandwiches, the menu features tenders, salads, soup, waffle shakes, and loaded fries, as well as seven signature sauces.
“HHC has been a manifestation of my relentless dedication to crafting a concept that marries the nostalgic allure of homestyle quality recipes with a colorful, modern and warm industrial atmosphere all guests can appreciate,” Barseghian said in a press release. “This collaboration with Savory Fund transcends a merger; it signifies the harmonious convergence of two passionate forces, both driven by a shared vision of uncompromising excellence.”
Nashville hot chicken is a flavor that has been growing in popularity over the last few years, with KFC rolling it out back in 2016. More recently, it’s popped up on menus at Chili’s Grill & Bar and Krystal. In December 2022, market research firm Datassential said Nashville hot chicken had grown 297% on U.S. menus over the previous four years.
“Savory has been monitoring this flavor segment for the past five years,” said Andrew K. Smith, cofounder and managing partner of Savory Fund. “We have met with and evaluated many brands attempting to do what HHC has already accomplished, and we are thrilled to make this strategic investment.”
HHC and Savory Fund are optimistic that the brand can grow with this investment, including through acceleration of its franchising arm.
“HHC has all the ingredients ripe for a successful sale: strong unit economics, a solid leadership team and an experience that resonates with guests,” said Taylor DeHart, principal of Savory Fund. “That impressive foundation, coupled with Savory’s growth expertise and capital, is an unstoppable combination. We foresee HHC establishing a powerful national presence in the years to come.”
Savory Fund launched in 2020 to develop emerging fast-casual restaurant brands. Its previous investments include Swig, Via 313, Hash Kitchen, PINCHO, Mo’Bettahs, R&R BBQ, 86 Repairs, Saigon Hustle, and The Sicilian Butcher.
For the latest transaction, for which terms were not disclosed, Harrington Park Advisors served as exclusive financial advisor to HHC. Mayer Brown LLP served as legal advisor to Savory Fund, and Greenberg Traurig served as legal advisor to HHC.
Contact Leigh Anne Zinsmeister at [email protected]
