The Investment

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 concept operating primarily across the Mountain West. The deal marks the fourth portfolio addition to Savory Fund III, alongside South Block, Bonrue, and Hawkers.

Zao's same-store sales growth of 18.2% is the headline metric driving the investment thesis. To support accelerated unit development, the brand has simultaneously secured a $12.5 million debt facility through Columbia Bank, earmarked for new location construction. Management is projecting 10 or more openings through 2027.

Why Savory Moved

Founded in 2013, Zao built its base on made-to-order bowls, noodles, wraps, and salads anchored by scratch-made sauces — a proposition that positions the brand squarely in the better-for-you fast-casual segment that has outpaced the broader limited-service restaurant category in traffic retention post-pandemic. Andrew K. Smith, managing director and co-founder of Savory Fund, cited founder Dave Duffin's brand-building instincts as central to the decision, noting the two had tracked each other's work for years before finalizing terms.

Duffin's track record supports that confidence. He previously founded Zuka Juice and Rumbi Island Grill, both of which gained regional traction before broader distribution. The current Zao leadership team adds Tom Hartman, a multi-unit operations veteran, and Paul Killpack, who spent 13 years as CFO of Café Zupas, overseeing that brand's expansion from 9 to more than 80 locations. Together, the trio claims 75-plus combined years of restaurant scaling experience — the kind of bench depth that institutional PE backers typically require before committing growth capital to a sub-30-unit emerging brand.

What Comes Next

The pan-Asian fast-casual segment has remained fragmented at the national level despite consistent consumer demand. Concepts like Pei Wei and Leeann Chin have struggled to hold scale, leaving a gap that regional operators — including Zao and fellow Savory portfolio brand Hawkers — are positioning to fill. Savory's existing playbook, sharpened on brands like Swig and Mo' Bettahs, relies on tightening unit economics, standardizing operations, and deploying capital into proven markets before pushing into new geographies.

For Zao, the immediate priority is converting its comp-sales momentum into new-unit productivity. With 10-plus locations slated to open before the end of 2027, the brand will need to demonstrate that its Mountain West unit economics translate in new daypart and demographic environments. The $12.5 million Columbia Bank facility provides runway without requiring immediate refranchising — keeping Zao company-operated as it refines its growth model before any potential area development agreement structure.

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.