Mercato’s Andrew Smith: Now is a “Golden Age” for Restaurants

The restaurant sector was one of the hardest hit during the pandemic, but the industry is rebounding rapidly, as consumers embrace going out again. Mercato Partners is jumping at the opportunity. The private equity fund, headquartered in Cottonwood Heights, Utah, near Salt Lake City, raised $100 million for its Savory Fund in October 2020, and followed up by closing Savory Fund II at $100 million in June 2021.  The goal of the second fund is to build a portfolio of six or seven small, but fast-growing restaurant brands that can expand from just a small number of local stores to larger regional chains. Savory portfolio companies include Via 313, Crack Shack and Swig. Mergers & Acquisitions recently caught up with Mercato managing director Andrew Smith to discuss how the pent-up demand for dining out is translating into PE deals. Smith and his wife Shauna Smith previously co-founded Four Foods Group, a company that built and operated 170 restaurants across the U.S. Today, Shauna Smith serves as CEO of Savory Management Group.