Savory closes oversubscribed $202M fund to scale founder-led restaurant brands
What's the deal? Savory FundDealroom has a profile for this one. Try Dealroom → has closed its third private equity vehicle, Savory Fund III, at $201.5 million, surpassing its $200 million target. The Salt Lake City firm — behind the growth of chains SwigDealroom has a profile for this one. Try Dealroom → and Mo' BettahsDealroom has a profile for this one. Try Dealroom → — will back profitable, founder-led restaurant concepts across quick-service, fast-casual, and casual dining.
Who's backing it? Most of Fund III's limited partners had already invested in Savory's first or second funds, and major banks joined this round. "The majority of our third fund's LPs invested with us in Fund I or II," said co-founder and managing director Andrew K. Smith. "Seeing major banks join them was a proud moment for us."
Where's the money going? The fund is 35% deployed across four brands: South BlockDealroom has a profile for this one. Try Dealroom →, an acai and smoothie chain; Bonrue BakeryDealroom has a profile for this one. Try Dealroom →, a Utah patisserie; Hawkers Asian Street FoodDealroom has a profile for this one. Try Dealroom →, a Michelin Guide-recommended concept; and Zao Asian GrillDealroom has a profile for this one. Try Dealroom →, a fast-casual chain posting nearly 20% same-store sales growth. Fund III will ultimately hold eight to nine companies.
What's the pitch? Savory pairs capital with an operating platform led by chief executive officer Clay Dover. "Capital is the part of our business that's easiest to explain, but it isn't what sets Savory apart," said co-founder Shauna K. Smith. "What our investors are really backing is the team behind the checks."
The track record: Since 2018, Savory has built a portfolio of 13 brands spanning more than 400 restaurants across 27 states. It grew Swig from 17 to 46 locations before selling a majority stake to The Larry H. Miller CompanyDealroom has a profile for this one. Try Dealroom → in 2022, and scaled Mo' Bettahs from six to 56 locations before selling a majority stake to Blue Marlin PartnersDealroom has a profile for this one. Try Dealroom → and Trive CapitalDealroom has a profile for this one. Try Dealroom → in 2024. It remains a minority owner of both.
The signal: Restaurants have long been treated as too risky for institutional capital. An oversubscribed fund drawing returning LPs and major banks suggests that view is softening — at least for operators who can prove the unit economics.
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