For its 12th restaurant investment – and the first in its $200-million Fund III – the private equity firm acquires a healthy stake in the acclaimed acai brand
Fire up the block party! Savory announced today it has entered into a growth partnership with South Block to fuel the expansion of the popular, healthy-for-you concept. Amir Mostafavi, founder and CEO of South Block, will continue on as CEO and steersman post-acquisition. The Virginia-based brand specializes in made-to-order smoothies, acai bowls, toasts, and cold-pressed juices.
This marks the first investment in Savory Fund III, which is a $200M 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.
“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.”
Founded in 2011, South Block now has 15 locations across Virginia, Washington DC, and Maryland. Mostafavi’s vision for the bright brand is to build healthier communities — but to do so in a deliciously approachable way.
“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.”
The South Block investment comes just three months after Savory’s investment in Houston TX Hot Chicken. These two strategic additions perfectly complement Savory’s list of booming and buzzworthy brands, including Swig, Mo’ Bettahs, 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.”
Terms of the transaction were not disclosed. Founders Advisors served as a financial advisor to South Block. Mayer Brown served as legal counsel for Savory Fund, and Rees Broome as legal counsel for South Block.
Savory is an innovative private equity firm that combines over $750 million in assets under management with a growth playbook and expertise that has been developed over 15 years of operating in the restaurant industry. Savory partners with high-potential, profitable, emerging restaurant brands, to deliver financial capital, industry expertise, growth and revenue opportunities, profitability enhancements and new location development. The Savory team contributes directly to all aspects of growth and replication by using a proven playbook and methodology. Founder involvement in the expansion of a brand is a central theme of the Savory approach as founders carry the tribal knowledge around the uniqueness that has energized early success and is essential to future growth. Savory is currently invested in the following brands: Swig, R&R BBQ, PINCHO, Via 313 Pizzeria, Mo’ Bettahs Hawaiian Style Food, 86 Repairs, Saigon Hustle, Hash Kitchen, The Sicilian Butcher, Houston TX Hot Chicken, and now South Block. For more information, visit SavoryFund.com.
South Block opened its first location in Clarendon, VA in 2011 with a mission to build healthier communities one block at a time. It specializes in fresh, made-to-order smoothies, acai bowls, toasts, and cold-pressed juices. The name was inspired by its first location on the south side of a block in the Clarendon neighborhood. South Block now has 15 locations across DC, Maryland, and Virginia. Mostafavi also started a nonprofit for South Block called Fruitful Planet, which provides fresh fruits and vegetables to underserved communities. Learn more at SouthBlock.com.
