Chipotle and Cava Invest $25 Million in Food Automation Startup Hyphen

Chipotle Mexican Grill and Cava Group, two prominent players in the fast-casual dining sector, have temporarily put aside their competition to co-invest $25 million in Hyphen, a foodservice automation startup. The funding round, led by Chipotle’s Cultivate Next venture fund with a $15 million contribution and Cava committing $5 million upfront with an additional $5 million contingent on terms, marks a strategic alignment between the two brands as they seek to reshape the future of restaurant operations [1]. This is the first major investment in automation for Cava, while Chipotle has previously supported Hyphen.

Hyphen’s platform is designed to automate culinary operations, including meal production at assembly stations. Cava plans to deploy the technology in its “second-make line,” a dedicated back-of-house area where kitchen staff prepare digital orders such as delivery and pickup items separately from in-restaurant orders. The system enables staff to manually prepare one item while automatically producing additional bowls or pitas from the same ingredients, thereby improving speed, accuracy, and throughput. Cava CFO Tricia Tolivar emphasized that the goal is to enhance the human experience, not replace it, and that Hyphen’s equipment supports this philosophy [1].

Both Chipotle and Cava offer customizable, fresh, and fast meals, catering to consumers who value convenience and quality. Chipotle specializes in Mexican-inspired dishes such as beans, rice, and guacamole, while Cava offers Mediterranean fare like hummus, tzatziki, and grains. Both brands feature grilled meats and allow customers to build their own meals. Cava reported a 20.3% year-over-year revenue increase to $278.2 million in its most recent fiscal quarter, with digital sales accounting for 37% of total sales. The company also opened 16 new locations, bringing its total to 398 [1].

Chipotle, under new CEO David Cundiff, continues to evolve its leadership following the departure of Brian Niccol, who is now CEO of Starbucks. The investment in Hyphen aligns with the broader industry trend of leveraging automation to address labor challenges and improve operational efficiency. The partnership also underscores the growing importance of digital orders in fast-casual dining.

While Cava is still in the testing phase of Hyphen’s systems, it expects to deploy the technology in its restaurants within a few months [1]. The collaboration between Chipotle and Cava reflects a shift in the fast-casual sector, where brands are increasingly choosing to collaborate on innovation rather than compete. This joint investment highlights the potential of automation to drive efficiency and elevate the customer experience in a rapidly evolving market.

Source: [1] Chipotle and Cava put rivalry on pause with $25 million bet on restaurant automation (https://fortune.com/2025/08/12/chipotle-and-cava-pause-competition-25-million-bet-restaurant-automation/)