Cinnabon confirmed in September 2025 that it would shutter all twelve of its UK stores, ending a five-year run that began in November 2020. The closures, described by EG On The Move—the brand’s master franchise operator—as “strategic,” are part of a broader shift back to the company’s core convenience-retail business. “This was not a decision taken lightly, but it reflects the strategic shift to focus on our core convenience retail business,” an EG On The Move spokesperson said.
When EG Group announced its partnership with Cinnabon in 2020, it envisioned up to 150 stores within five years. The target was not met, and the chain peaked at twelve locations in high streets, shopping centres, and petrol forecourts across the UK before contracting. Rising food costs and inflation contributed to a tough retail environment for specialty bakeries in Britain, where consumer spending patterns have shifted in response to broader economic pressures.
EG Group said the closures reflect a move to invest in convenience products like coffee, groceries, and fuel, where its portfolio shows stronger returns. These convenience-focused categories have demonstrated more resilience in the current economic climate compared to specialty bakery offerings. Cinnabon continues to operate more than 1,200 locations globally, particularly in travel hubs and airports where its domestic success remains strong.
Dave’s Hot Chicken: Growth Meets Market Reality
Dave’s Hot Chicken, the Nashville-style hot chicken chain, was acquired by Roark Capital in June 2025 for $1 billion. The company operates over 330 locations across the United States as of mid-2025 and is projected to reach 400 locations by year-end. There have been closures of underperforming locations, including one in Brooklyn, New York. These appear to be routine franchise adjustments rather than a broader retrenchment, with continued new openings in several states.
Restaurant analyst Mark Kalinowski described recent closures as a “reality check after breakneck growth,” noting the chain’s momentum was fueled by social media buzz and strong Gen Z adoption. Founded in Los Angeles in 2017, Dave’s climbed rapidly to hundreds of locations before Roark’s investment. While reports note some franchisees have seen varying sales, Dave’s Hot Chicken continues actively recruiting and expanding its footprint in the U.S. and internationally, including the Middle East and UK.
Roark Capital’s Portfolio Strategy and Sector Context
Roark Capital, an Atlanta-based private equity firm, holds numerous restaurant assets, including Dunkin’, Subway, Arby’s, and—via GoTo Foods—Cinnabon and Auntie Anne’s. Roark is known for restructuring acquired brands, often tightening operations before pursuing further expansion.
The firm’s approach typically focuses on optimizing operational efficiency and market positioning for its portfolio companies. Roark acquired Cinnabon in 2004 through Focus Brands (now GoTo Foods), making it a long-standing portfolio holding. Dave’s Hot Chicken is a more recent addition, reflecting Roark’s strategy of investing in growth-stage franchise concepts with demonstrated market appeal and expansion potential.
The restaurant sector faces continued pressure from inflation, labor costs, and evolving consumer preferences. Franchise-heavy models can shift risk to operators but require careful market selection. For specialty brands like Cinnabon, the UK exit signifies broader challenges for American chains abroad, while Dave’s Hot Chicken demonstrates ongoing U.S. and international expansion through strategic franchise growth.