Savory Closes $200 Million Fund III, Sets Sights on More Growth

Savory Fund, the private equity firm behind the breakout growth of restaurant category leaders Swig and Mo’ Bettahs, announced the final close of Savory Fund III at $201.5 million, surpassing its $200 million target. The fund drew a mix of returning and new limited partners, including the country’s leading financial institutions, and has already deployed 35 percent of its capital.

“Raising a fund is a vote of confidence, and our investors voted loudly,” said Andrew K. Smith, co-founder and Managing Director of Savory Fund. “The majority of our third fund’s LPs invested with us in Fund I or II.

They’ve been here as we’ve helped scale 13 restaurant brands across the country, from Detroit-style pizza to Nashville-style hot chicken to dirty soda, and I don’t take it for granted that they came back. Seeing major banks join them was a proud moment for us. It tells me people are starting to see restaurants the way we always have: these are real businesses that create jobs, anchor neighborhoods, and give people a place to gather.

And when they’re run well, they are also strong, profitable investments. We’ve got four standout brands in Fund III already, and we’re just getting started.”

Fund III continues Savory’s strategy of partnering with profitable, emerging, founder-led restaurant concepts and pairing capital with a full operating platform led by CEO Clay Dover. The fund will ultimately include eight to nine portfolio companies across the quick-service, fast-casual, and casual dining segments.

Four investments are already in place:

South Block, a better-for-you acai and smoothie brand expanding beyond its home market in the Washington, D.C. area

Bonrue Bakery, a European-style patisserie with a devoted Utah following

Hawkers Asian Street Food, a Michelin Guide-recommended concept outperforming its category in AUVs and guest frequency

Zao Asian Grill, a fast-casual leader posting nearly 20% percent same-store sales growth

“Capital is the part of our business that’s easiest to explain, but it isn’t what sets Savory apart,” said Shauna K. Smith, co-founder and Managing Director of Savory Fund. “What our investors are really backing is the team behind the checks: operators who have opened restaurants, built playbooks, and know what it takes to scale without losing what made a brand special. Fund III gives us the runway to bring that expertise to more founders who are ready for their next chapter.”

Since its founding in 2018, Savory has grown to a portfolio of 13 restaurant brands spanning 400+ restaurants across 27 states. Its track record includes two of the most talked-about restaurant brands in the West. Under Savory’s partnership, Swig grew from 17 to 46 locations before Savory sold a majority stake to The Larry H.

Miller Company in 2022. Mo’ Bettahs grew from six to 56 locations, more than nine times its original footprint, before Savory sold a majority stake to Blue Marlin Partners and Trive Capital in 2024. Savory remains a minority owner of both brands, and Andrew K.

Smith continues to serve on both boards.