Savory Fund closes third restaurant fund at $201.5 million, above its target

DRAPER — Savory Fund closed its third restaurant investment fund at $201.5 million, surpassing the $200 million target it set for the raise, the firm announced on Oct. 13 1. Utah News carried the headline on Oct. 15, crediting techbuzznews.com and labelling it a single-source report 2. RestaurantData, a company-data provider, lists Savory's headquarters at 14761 S Future Way, Ste. 350 in Draper and describes it as "a Draper, Utah-based restaurant investment and operating platform launched through its first fundraise in 2018" 3.

The fund drew a mix of returning and new limited partners, including what the announcement calls the country's leading financial institutions, and 35 percent of its capital is already deployed, according to the announcement 1. Nation's Restaurant News reported that Savory typically takes a controlling stake in brands while leaving the founders in charge, and that the firm also holds a majority interest in Via 313 Pizzeria, Houston TX Hot Chicken and about half a dozen other brands 4.

Fund III will ultimately invest in eight or nine restaurant concepts across the quick-service, fast-casual and casual dining segments, and four investments are already in place 1. They are South Block, an acai and smoothie brand expanding beyond its home market in the Washington, D.C. area; Bonrue Bakery, a European-style patisserie with a Utah following; Hawkers Asian Street Food, which the announcement describes as Michelin Guide-recommended; and Zao Asian Grill, a fast-casual chain that Savory says is posting nearly 20 percent same-store sales growth 1. Nation's Restaurant News reported that Bonrue is based in St. George, Hawkers in Orlando and Zao in Salt Lake City 4. The announcement does not state how much went into any one brand 1.

"Raising a fund is a vote of confidence, and our investors voted loudly," Andrew K. Smith, co-founder and managing director, said in the announcement 1. He said most of Fund III's limited partners had invested in the firm's first or second fund, and that Savory has helped scale 13 restaurant brands "from Detroit-style pizza to Nashville-style hot chicken to dirty soda" 1. Shauna K. Smith, also a co-founder and managing director, said the fund gives Savory "the runway to bring that expertise to more founders who are ready for their next chapter" 1. Nation's Restaurant News reported that Fund III is led by Clay Dover, who joined Savory as chief executive in January 4.

Savory was founded in 2018 and reports 13 brands, more than 400 restaurants and operations in 27 states 14. Its two best-known outcomes were partial exits: Swig grew from 17 to 46 locations before Savory sold a majority stake to The Larry H. Miller Company in 2022, and Mo' Bettahs went from six to 56 locations before a majority stake went to Blue Marlin Partners and Trive Capital in 2024 14. Savory says it remains a minority owner of both brands and that Andrew K. Smith serves on both boards 1. The firm reports more than $750 million in assets under management 14.

Four to five investment slots remain in the fund, and the firm says it is evaluating founder-led brands ready to expand 1.