The Deal
Savory Fund, the restaurant-focused private equity firm with more than $750 million in assets under management, has taken a strategic equity stake in Zao Asian Grill, a 23-unit pan-Asian fast-casual chain based in the Mountain West. The investment is accompanied by a $12.5 million debt facility arranged through Columbia Bank to finance new unit development, with 10 or more locations projected to open through 2027.
The Numbers
Zao's same-store sales growth of 18.2% is the headline metric underpinning the deal, signaling strong unit-level economics before the chain pursues a broader footprint. Founded in 2013, the concept offers made-to-order bowls, wraps, salads, noodles, and soups anchored by scratch-made sauces — a positioning that has resonated in a fast-casual Asian segment that remains fragmented at the national level. Savory Fund's backing marks the fourth investment out of Savory Fund III, which also holds South Block, Bonrue, and Hawkers in a portfolio oriented toward emerging chain concepts.
Management Depth
Savory Fund's investment thesis rests in part on Zao's leadership bench. Founder Dave Duffin previously built Zuka Juice and Rumbi Island Grill. Chief Operating Officer Tom Hartman brings multi-unit scaling experience across several restaurant brands. Chief Financial Officer Paul Killpack spent 13 years as CFO of Café Zupas, overseeing growth from 9 to more than 80 locations. The three executives collectively represent more than 75 combined years of restaurant brand development — a profile consistent with the operator-heavy diligence approach Savory has applied across its portfolio, which includes Swig and Mo' Bettahs.
"He's one of the most instinctive brand builders I know," said Andrew K. Smith, managing director and co-founder of Savory Fund, referring to Duffin. "Getting to finally roll up our sleeves and build something together, instead of just cheering him on from a distance, is the kind of partnership you don't pass up."
Duffin, for his part, framed the capital event as a precision fit rather than an opportunistic raise. "What we needed was a partner who could match our ambition without losing sight of what makes Zao special," he said. "They know the difference between growing fast and growing right."
What's Next
The pan-Asian fast-casual segment has attracted growing operator and investor attention as consumer demand for globally influenced, customizable meals continues to shape restaurant industry trends. Zao's concentration in the Mountain West — a region that has proved fertile ground for emerging chains before national rollouts — gives the brand a defined proving ground even as expansion targets shift eastward. For Savory Fund, the deal extends a track record of backing emerging fast-casual concepts at the inflection point between regional credibility and national scale, a private equity strategy that has become increasingly competitive as institutional capital flows into the restaurant sector. With the Columbia Bank facility in place and unit economics trending positively, Zao's near-term execution will center on site selection and operational replication as it moves beyond its home market.
Written by Michael Politz, Author of Guide to Restaurant Success: The Proven Process for Starting Any Restaurant Business From Scratch to Success (ISBN: 978-1-119-66896-1), Founder of Food & Beverage Magazine, the leading online magazine and resource in the industry. Designer of the Bluetooth logo and recognized in Entrepreneur Magazine's "Top 40 Under 40" for founding American Wholesale Floral, Politz is also the Co-founder of the Proof Awards and the CPG Awards and a partner in numerous consumer brands across the food and beverage sector.
