Dive Brief:
- Savory Fund, a private equity firm that was an early backer of Swig and Mo’ Bettah’s, has closed out a $201.5 million fund, dubbed Savory III, surpassing its original $200 million target, according to a Tuesday press release.
- The fund will help Savory identify new breakout brands, and it will eventually use the money to back eight or nine portfolio companies across restaurant segments, with a focus on “profitable, emerging, founder-led restaurant concepts,” the company said.
- Savory’s support helped Swig grow from 17 units to 46, before the Larry Miller Company took a majority stake in the dirty soda chain in 2022. Likewise, the PE firm’s investment in Mo’ Bettahs helped the Hawaiian-inspired fast casual chain grow from six to 56 locations before it was acquired by Blue Marlin Partners and Trive Capital in 2024.
Dive Insight:
Savory will use the capital to fund operators who have experience opening new concepts and want to scale without diluting brand identity, said Shauna K. Smith, managing director and co-founder at Savory.
The fund has already backed at least four companies so far, the press release said.
Savory III invested in Southblock, an açaí and smoothie chain in the Washington, D.C., area; Bonrue Bakery, a Utah-based European bakery cafe brand; Hawkers Asian Street Food, a cocktails and small plates chain; and Zao Asian Grill, a Utah-area fast casual chain that has managed roughly 20% of same-store sales growth, according to the press release. Savory III has already deployed about 35% of its capital, per the press release.
Savory has a portfolio of 13 brands with over 400 restaurant units across 27 states, according to the press release.
Private equity players have become important sources of capital for brands looking to scale in recent years. Freeman-Spogli acquired Philz Coffee in 2025, and the brand has since reworked its loyalty program while maintaining its long-term strategy. Freddy’s Frozen Custard & Steakburgers has continued to grow since it secured backing from Rhône in 2025 and hit 600 units earlier this week.
