Savory Fund Raises $201.5 Million for Restaurant Investments as Four Brands Join Its Third Fund

Savory Fund has closed its third investment vehicle with $201.5 million in commitments, continuing the private equity firm’s focus on profitable, emerging restaurant brands led by their founders.

The Salt Lake City, Utah-based firm received backing from both existing and new limited partners for Savory Fund III.

The fund will target businesses across the quick-service, fast-casual and casual dining sectors.

Fund Targets Eight to Nine Restaurant Brands

Savory Fund III will follow the firm’s established investment strategy of partnering with promising restaurant concepts that have demonstrated profitability and are seeking opportunities for expansion.

Alongside financial backing, the firm provides portfolio companies with an operating platform led by chief executive officer Clay Dover.

Its support includes industry expertise, revenue growth opportunities, profitability improvements and assistance with opening new locations.

The fund is expected to comprise between eight and nine portfolio companies across its targeted restaurant categories.

Four Restaurant Brands Already Join the Portfolio

Savory Fund III has already completed four investments, spanning health-focused beverages and food, bakery products and Asian-inspired dining.

The investments include South Block, a better-for-you acai and smoothie brand that is expanding beyond its established Washington, D.C.-area market.

Bonrue Bakery is another addition to the portfolio. The European-style patisserie has developed a dedicated customer following in Utah.

The fund has also invested in Hawkers Asian Street Food, a restaurant concept recommended by the Michelin Guide. The business has recorded average unit volumes (AUVs) and guest frequency that outperform its category, according to the announcement.

Completing the four investments is Zao Asian Grill, a fast-casual restaurant brand reporting same-store sales growth of nearly 20 per cent.

Savory Fund Focuses on Emerging Restaurant Businesses

Savory Fund describes itself as a private equity firm specialising in profitable, high-potential restaurant brands at an emerging stage of development.

Its investment approach combines financial capital with operational expertise, growth and revenue opportunities, measures to improve profitability, and support for developing additional locations.

The firm works with restaurant businesses seeking to build on their existing performance while expanding their operations.

Existing Portfolio Spans Multiple Restaurant Concepts

Savory Fund’s portfolio includes a range of restaurant brands operating across different cuisines and dining formats.

Its holdings include Swig, R&R BBQ, Pincho, Via 313 Pizzeria, Mo’ Bettahs, Saigon Hustle, Hash Kitchen, The Sicilian Butcher and Houston TX Hot Chicken.

South Block, Bonrue Bakery, Hawkers Asian Street Food and Zao Asian Grill are also included in its portfolio.

Founders Lead Savory Fund

Savory Fund was co-founded by Andrew K. Smith and Shauna K. Smith, both of whom serve as managing directors of the firm.

The leadership team also includes Clay Dover, who leads the operating platform supporting the firm’s restaurant investments as chief executive officer.