Savory Fund acquires South Block, Virginia-based healthy food chain

Lehi-based Savory Fund, a 15-year-old private equity firm operating in the restaurant industry, has acquired South Block, a healthy food chain headquartered in Clarendon, Virginia. Founded in 2011, South Block specializes in fresh, made-to-order smoothies, acai bowls, toasts and cold-pressed juices. It now has 15 locations across D.C., Maryland and Virginia.

Savory said that Amir Mostafavi, founder and CEO of South Block, will continue on as CEO operations manager after the deal closes. Mostafavi also operates a nonprofit for South Block called Fruitful Planet, which provides fresh fruits and vegetables to underserved communities.

Financial details were not announced.

This marks the first investment in Savory Fund III, which is a $200 million fund focused on the strategic growth of emerging restaurant concepts. South Block, with its fresh flavors, addictive menu, and community focus, was a clear and perfect addition to Savory’s varied and powerful portfolio, Savory said.

“South Block was built by always putting people first. Our people, our culture and our community are the driving force behind what makes South Block shine,” Mostafavi said. “When seeking a partnership to accelerate our growth, we knew we couldn’t compromise our core values. Savory stood out because of their focus on founders’ vision and their dedication to culture. Our teams have blended so well from the start. We couldn’t be more excited about the jobs we are going to create and the positive impact we are committed to cultivating on every block we become a part of.”

“I instantly fell in love with South Block — from the moment I took a bite of that insanely good PBJ acai bowl. Their menu is healthy without being intimidating, their systems are effective, and sound and their devoted following is incredible to watch,” said Andrew K. Smith, managing partner and co-founder of Savory. “Amir has not only created a successful brand, he has curated a team we are honored and thrilled to work with as we scale this standout concept throughout the northeast.”

Along with Savory’s recent acquisition of Houston-based TX Hot Chicken, the firm now operates brands such as Swig, Mo’ Bettah’s, Via 313, Saigon Hustle and Hash Kitchen.

“I have met with hundreds of brands over the years and deciding what concept to invest in always comes back to its unique offering, its scalability and the heart of its origin story,” said Taylor DeHart, principal at Savory. “We are a founder-driven investment company and we are thrilled to welcome Amir and the South Block team to the Savory family.”