Drake buys stake in Dave’s Hot Chicken chain

Singer’s investment likely to give eatery a celebrity boost

Drake, the Canadian hip-hop star, is taking a minority stake in Dave’s Hot Chicken, the fried-chicken chain that’s backed by investors such as Boston Red Sox chair Tom Werner and actor Samuel L. Jackson.

Dave’s Hot Chicken is following a celebrity-driven playbook that’s similar to that of Blaze Pizza, which shares a leadership team with Dave’s and counts NBA superstar LeBron James as an investor.

Launched in 2017, the chicken chain now has 22 locations, mostly in California, and is planning 25 more by the end of the year, with expansion to cities including Chicago and Houston. Drake, one of the world’s best-selling musicians, has already posted a picture of himself with chicken tenders, pickles and fries from Dave’s on Instagram.

“I tried the food and it was amazing. After meeting the founders and hearing their story, I jumped at the opportunity to invest,” Drake said in a statement.

Drake’s involvement will probably give the chain a celebrity boost.

Drake will own less than 50 per cent of the company, but will be among the biggest investors alongside Werner and Jackson. The company didn’t give further details about his stake.

Dave’s Hot Chicken has posted a net loss of about $1.9 million (U.S.) so far in 2021 on revenue of nearly $9.1 million, the company said in an email. It has invested “more than $10 million” to grow in the U.S.

In January, the chain opened its first Canadian location through Obelysk, a company owned by John Bitove, brother to Jordan Bitove, publisher of the Toronto Star and co-proprietor of Torstar Corp. John Bitove’s daughter, Blair Bitove, is director of business development at Obelysk.