Franchising
Savory Fund investing in hot chicken brand
November 1, 2023
Utah-based Savory Fund is investing in Houston TX Hot Chicken, a fast casual brand founded in 2021 by Edmond Barseghian with 11 locations in Arizona, California, Idaho, Nevada, Texas and Utah.
"HHC has been a manifestation of my relentless dedication to crafting a concept that marries the nostalgic allure of home-style quality recipes with a colorful, modern and warm industrial atmosphere all guests can appreciate," Barseghian said in a company 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."
HHC serves hot chicken sandwiches, tenders, salads, soup, waffle shakes and loaded fries and offers seven sauces, including "No Spice, "Honey Butter," "Liftoff," and "Houston, We Have a Problem."
The market for Nashville hot chicken, a niche previously catered to by local, family-run businesses, is experiencing a mainstream renaissance, said Andrew K. Smith, co-founder and managing partner of Savory Fund.
"Savory has been monitoring this flavor segment for the past five years," he said in the release. "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. We are confident in HHC's potential to lead the Nashville hot chicken wave, particularly as we look toward franchising. Edmond and his team are ready to turn a local hotspot from Las Vegas into a national success story through additional corporate growth and franchising."
Based in Utah, Savory also owns Swig, Via 313, Hash Kitchen, Pincho and Mo' Bettahs.
"HHC has all the ingredients ripe for a successful scale: strong unit economics, a solid leadership team and an experience that resonates with guests," Taylor DeHart, principal of Savory Fund, said in the release. "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."
Terms of the transaction were not disclosed. Harrington Park Advisors served as exclusive financial adviser to Houston TX Hot Chicken. Mayer Brown LLP served as legal adviser to Savory Fund and Greenberg Traurig served as legal adviser to Houston TX Hot Chicken.
