Savory Fund backs Zao Asian Grill, eyes 10-plus new locations by 2027
What's the deal? Savory FundDealroom has a profile for this one. Try Dealroom → has made a growth equity investment in Zao Asian GrillDealroom has a profile for this one. Try Dealroom →, a pan-Asian fast-casual chain with 23 locations across the Mountain West. Terms were not disclosed.
What does Zao do? Founded in 2013 by veteran restaurateur Dave Duffin, Zao offers a chef-driven menu of bowls, salads, wraps, tacos, and soup with scratch-made sauces. Its leadership includes CEO Tom Hartman and Paul Killpack, who spent 13 years as CFO of Café ZupasDealroom has a profile for this one. Try Dealroom →.
By the numbers: Zao recently posted 18.2% same-store sales growth, driven by demand for clean eating, a surging catering business, and a limited-time-offer cadence.
Why now? To fund expansion, Zao secured a $12.5 million debt facility with Columbia BankDealroom has a profile for this one. Try Dealroom →, targeting 10-plus new locations through 2027. The Savory deal adds operational muscle to that plan.
What they're saying: "He's one of the most instinctive brand builders I know, and I've spent years admiring Zao from the outside," Savory Fund managing director and co-founder Andrew K. Smith said of Duffin. Duffin said Savory knows "the difference between growing fast and growing right."
What's the endgame? Smith framed the deal as a national ambition, saying the firm can't wait to "show the country what the Mountain West already knows about Asian fast casual." Zao marks the fourth investment in Savory Fund IIIDealroom has a profile for this one. Try Dealroom →, alongside South BlockDealroom has a profile for this one. Try Dealroom →, Bonrue BakeryDealroom has a profile for this one. Try Dealroom →, and Hawkers Asian Street FoodDealroom has a profile for this one. Try Dealroom →.
The signal: Savory continues to bet on founder-led, regional restaurant brands — its portfolio includes SwigDealroom has a profile for this one. Try Dealroom →, Via 313 PizzeriaDealroom has a profile for this one. Try Dealroom →, and Mo'BettahsDealroom has a profile for this one. Try Dealroom → — signalling investor appetite for proven fast-casual concepts ready to scale beyond their home markets.
Image credit: Studio Sarah Lou
