How Olo Pay Supports Dave’s Hot Chicken as It Grows 50% Year Over Year
Dave's Hot Chicken is one of America’s hottest brands, with plans to open over 130 restaurants a year. At this pace, payments have to work. Under the brand’s previous processor, fraud controls were either too strict, blocking legitimate transactions, or too loose, letting too much fraud through. When the brand moved online ordering to Olo, it added Olo Pay, a payment platform designed to support the restaurant industry's unique needs. Now ordering and payments work together as one system: guests pay how they prefer, more legitimate orders get approved, and fraud is stopped before it reaches franchisees. Today, the brand sees higher order conversion rates, while chargebacks have all but disappeared. This has allowed franchisees to retain more revenue while freeing up time to focus on serving their guests instead.
PRODUCTS AT PLAY
0.03%
Dispute rate
54%
Increase in online orders year over year
0.01%
Fraud rate
$4M+
In fraudulent charges blocked in one year
Background
In 2017, three friends pooled $900 to pop up a table in a Los Angeles parking lot and called it Dave’s Hot Chicken. Its tight menu and cult following turned their parking-lot stand into one of the fastest-growing restaurant chains in the U.S. It opened its 500th restaurant in October 2026 and once opened eight locations in a single day.
Before Olo, Dave's Hot Chicken ran online payments through a generic legacy payment processor. However, its fraud protection wasn’t calibrated for the restaurant industry: turned on, it flagged too many real orders as fraud; turned off, it let fraudulent orders through, leading to chargebacks. Across hundreds of restaurants, those chargebacks piled up, clogging corporate IT’s help desk queue with support tickets.
When Dave's Hot Chicken moved online ordering to Olo in 2023, it brought payments onto the same platform with Olo Pay. Leadership saw payments as part of the guest experience and a core part of the commerce experience. They knew a higher authorization rate meant more legitimate orders would go through, and that digital wallets would simplify checkout, giving guests a smoother experience they’d want to return to. When they switched from a general-purpose processor to Olo Pay, the brand had one restaurant-focused partner handling every online transaction, with built-in fraud protection. Leadership had worked with Olo at previous brands and knew it supported a majority of the top 100 U.S. restaurant chains, so they trusted it to keep up with the brand’s growth.
Results with Olo
01
Faster checkouts, more completed orders
02
Franchisees can forget about chargebacks
Blocking fraud shouldn’t mean blocking legitimate guests. But when fraud rules are too strict, legitimate orders get declined, and those guests may not come back. Because Olo Pay is specific to restaurants, it strikes the right balance: keeping fraud out without turning away legitimate guests. Over the past year, Olo Pay approved 96.54% of Dave’s Hot Chicken transactions, held fraud to 0.01%, and blocked more than 92,000 potentially fraudulent transactions worth over $4M—even as order volume kept climbing.
Olo Pay also solved the chargeback problem, bringing the dispute rate down to just 0.03%. When a chargeback does come in, Olo Pay contests it automatically and wins back the revenue in more than one in five cases. Help desk tickets have stopped, and money that used to walk out the door with fraudulent orders now stays with franchisees.
03
Payments that scale as fast as the brand
"Olo Pay has been extremely reliable. We haven't had any breakdowns. The chargeback tickets that used to fill our help desk queue are non-existent now."
Leon Davoyan, CTO, Dave's Hot Chicken
Dave's Hot Chicken
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