How Houston Hot Chicken Conquered the Fast-Casual Space

Jun 05, 2025

A conversation with serial entrepreneur Edmond Barseghian reveals the unconventional strategies behind one of the fastest-growing hot chicken brands in America.

When Edmond Barseghian started Houston Hot Chicken in August 2021, he had a bold vision—but even he didn't expect to sell 100 franchises in just five months. The Armenian-born, Sweden-raised entrepreneur launched his Las Vegas-based concept during the pandemic after perfecting a recipe with his sister, and by January 2022, his brand was ranked the number one restaurant in all of Las Vegas. What makes this growth story particularly fascinating isn't just the speed—it's the unconventional approach of a serial entrepreneur who's applying lessons from 12 previous businesses to revolutionize the hot chicken space.

Barseghian's background reads like a masterclass in customer service innovation. Before restaurants, he transformed his father's struggling five-truck towing operation into a 52-truck empire with five locations by focusing on one key principle: exceeding customer expectations. His tow trucks became "the Fast and Furious version," complete with chrome and lights that turned roadside assistance into a spectacle. The result? Three of his five locations ranked in the top five of all 376 AAA stations in California. This obsession with creating memorable experiences became the foundation of Houston Hot Chicken's brand philosophy.

The restaurant concept itself breaks every rule in the fast-casual playbook. While competitors focus on speed and efficiency, Barseghian invested in high-end restrooms that rival fine dining establishments, curated DJ-quality playlists, and $15,000 lighting systems that create an Instagram-worthy atmosphere. The orange-hued Houston sauce (named after his former business partner) distinguishes the brand from Nashville-style competitors, while fresh, never-frozen ingredients justify the premium positioning. But perhaps most uniquely, Barseghian leverages his passion for racing and car culture, hosting monthly car shows at each location that draw 2,000+ attendees and over 100 cars—creating a community that extends far beyond food.

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The brand's expansion strategy demonstrates sophisticated market intelligence. Rather than rushing into oversaturated markets like Los Angeles, Barseghian identified Las Vegas as an untapped opportunity during the pandemic. This strategic patience paid off when a Michigan-Ohio franchisee family, who owned Five Guys locations, discovered Houston Hot Chicken at a Las Vegas convention and immediately committed to 65 units. The brand now operates 26 locations across six states, with 20 franchised units and ambitious plans to reach 100 stores by next year and 200+ within three years.

What's particularly impressive is how Barseghian has assembled a world-class team despite his restaurant industry inexperience. He brought in COO Matt Rush, who had CEO experience at another restaurant company, and recently hired Brian Simowitz as president—a 30-year industry veteran who left a 330-unit chicken concept to join Houston Hot Chicken's 20-unit operation. The brand also secured investment from Savory Fund, a private equity firm specializing in restaurant growth, providing the infrastructure and expertise needed to scale from 10 to 1,000 locations.

The Houston Hot Chicken story represents a new model for fast-casual success—one that prioritizes experiential differentiation over operational efficiency alone. With prime costs in the low 50s, over 300 franchise commitments, and 2,500 inquiries, Barseghian has created something rare in the restaurant industry: a brand that customers evangelize on social media, franchisees fight to acquire, and competitors struggle to replicate. As the hot chicken segment continues to explode, Houston Hot Chicken's combination of premium product quality, experiential marketing, and community building may well define the next generation of fast-casual growth.