Savory Fund has made a strategic investment in Zao Asian Grill, adding the 23-location, Utah-born concept to a portfolio that already includes Swig and Mo’ Bettahs. The Lehi-based private equity firm announced the deal Aug. 4; terms were not disclosed.

Zao posted same-store sales growth of 18.2% heading into the deal, and the brand has paired the investment with a $12.5 million debt facility from Columbia Bank earmarked for new location development. The company projects more than 10 new locations by 2027, building out from its current strongholds across the Mountain West.

Founded in 2013, Zao built its menu of bowls, salads, wraps, tacos and soup around scratch-made sauces, rice, noodles and proteins served fast-casual style. Founder Dave Duffin previously started Zuka Juice and Rumbi Island Grill, two Utah quick-service brands he later sold. He’s joined at Zao by CEO Tom Hartman, who brings multi-unit operations experience, and CFO Paul Killpack, who spent 13 years as chief financial officer at Café Zupas, where he helped grow that chain from nine to more than 80 locations.

A pattern in Asian fast casual

Zao is the fourth investment in Savory Fund III, the private equity firm’s dedicated growth vehicle. South Block marked the first investment in Savory Fund III, a $200 million fund focused on the strategic growth of emerging restaurant concepts, followed by Bonrue Bakery and, in June 2025, by Hawkers Asian Street Food, which joined the portfolio. That deal came with a wrinkle: Hawkers filed for Chapter 11 bankruptcy protection in September 2024 and voluntarily withdrew from Chapter 11 in February 2025, following a consensual loan restructure from the prior lender, before Savory stepped in to fund its next growth phase. Two of Savory Fund III’s four deals now involve Asian-inspired fast-casual brands, underscoring the category conviction behind the Zao investment.

“Dave Duffin and I have been circling each other’s orbit for years, always with a nod of mutual respect in this industry,” says Andrew K. Smith, managing director and co-founder of Savory Fund. “He’s one of the most instinctive brand builders I know, and I’ve spent years admiring Zao from the outside.”

Savory’s playbook has a track record close to home. Mo’ Bettahs was acquired in 2017 by Savory Fund after opening six locations in Utah, and together they grew the brand to 56 locations across seven states before Savory sold its majority stake in 2024. That deal earned a place among the 2025 Middle Market Deals of the Year by Mergers & Acquisitions, a select group of transactions recognized by Mergers & Acquisitions — a track record Savory is now looking to repeat with Zao. Savory combines over $750 million in assets under management with a growth playbook and expertise developed over 16 years of operating in the restaurant industry.

“We’ve built something at Zao guests genuinely love, and the foundation has never been stronger,” says Tom Hartman, CEO of Zao. “That success is a direct reflection of our incredible unit-level operators and our support center, who show up every day to take care of our guests, develop our people, and bring the Zao experience to life. Now, with Savory’s operational firepower behind us, we’re ready to build on that strong foundation.”

Zao’s next test is scale. With a debt facility in place and a leadership team that includes veterans of Café Zupas’ own multiplication from single digits to 80-plus units, the brand is positioned to move beyond its Mountain West base — the same trajectory Savory has already run once with Mo’ Bettahs and is now attempting again with Hawkers.

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This article was adapted from a press release by an automated tool and reviewed and edited by an editor for accuracy before publication.

Catherine Bennett
Catherine Bennett is the executive editor of Utah Business.