Amid ongoing challenges in the restaurant industry, leading chains such as Chipotle and Cava are investing in automated makelines developed by startup Hyphen. Based in San Jose, California, Hyphen aims to enhance speed and customer service within a fiercely competitive market. Co-founder and CEO Stephen Klein noted that their technology allows for swift assembly of meals, with the capacity to produce a bowl every 10 to 15 seconds during peak times.
In August 2025, Hyphen secured a Series B financing round, bringing in up to $10 million from Cava, while Chipotle has invested a total of $25 million through its Cultivate Next venture fund. These investments are intended to boost Hyphen’s production and facilitate wider deployment in U.S. restaurants, with plans for collaboration with Re:Build Manufacturing in Michigan.
Hyphen’s automation technology addresses labor challenges and enhances service processes by utilizing robotic systems hidden from customer view, which prepare ingredients in precise portions, thereby reducing food waste. Klein mentioned that the equipment, costing between $50,000 and $100,000, often provides a return on investment within a year, operating 95% of the time.
Despite the shift towards automation, the restaurant sector remains under pressure, as evidenced by stock declines for both Chipotle and Cava. Sweetgreen, another competitor, faces similar challenges, having sold its robotics unit earlier this year. Hyphen is exploring partnerships with major brands and food service providers, aiming to expand its capabilities beyond current offerings while focusing on restaurants that require a high level of customization and volume.
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