Cava is joining forces with Chipotle to ramp up robotic makeline technology.
Cava on Tuesday said it is investing up to $10 million in Series B funding for San Jose, California-based tech firm Hyphen, which has developed an automated makeline being tested by Chipotle. Cava’s commitment is $5 million, plus an additional $5 million subject to terms that were not disclosed.
Cava plans to also start testing the automated makelines "in coming quarters," CEO Brett Schulman said.
Chipotle, through its Cultivate Next fund, invested $15 million in Hyphen last year. Hyphen officials said the $25 million in capital will be used to accelerate the manufacturing and deployment of the automated makelines by partner Re:Build Manufacturing.
The move, however, brings Cava into the fast-casual automation arms race, which previously seemed limited to Chipotle and Sweetgreen.
Sweetgreen in 2021 acquired the Spyce robotic makeline technology that evolved into the Infinite Kitchen, a growing format for the fast-casual bowl chain.
So far, the 12 Sweetgreen Infinite Kitchen units have higher margins and accuracy rates, and lower labor costs and worker turnover. Officials have painted the technology as potentially game-changing for that brand. Of the 40 Sweetgreens expected to open this year, half will be Infinite Kitchen units.
Hyphen’s technology, meanwhile, is a bit different. Chipotle has called it an “augmented makeline,” because they are essentially two makelines in one.
While a human builds bowls or burritos on the top of the counter, in an analog way, the Hyphen makeline lives under the counter, preparing digital orders at the same time with some—albeit limited—human intervention.
It’s somewhat unprecedented to see two competing brands join forces to support technology that is fundamentally designed to drive sales.
Schulman said of Cava and Chipotle, “We view ourselves as best in breed, like-minded brands. They focus on Mexican, and we focus on Mediterranean. And I think we’re both focused on how do we make it easier for our team members to run our restaurant while still maintaining that human connection?”
Cava has been talking to Hyphen for a few years now, said Schulman, who has long been an advocate of technology that “enhances the human experience, not replaces it.”
Guests are looking for speed, convenience and accuracy, and the Hyphen equipment is designed to deliver that so team members can focus on in-restaurant hospitality, he said.
If deemed beneficial, the technology could replace the back-of-the-house second makelines that only produce digital orders, which Cava has operated in its restaurants since 2015. About 36% of Cava’s sales come from digital orders.
Schulman said the goal is to free workers on those back-of-the-house lines so they can get out in the dining room again for more consumer-facing work.
Automated makelines also tend to be more accurate, he said.
“We know that digital order accuracy is one of our biggest opportunity areas, if ingredients are missing or maybe portions are not accurate, versus in restaurant, where we have a much better score on that front,” said Schulman. Whereas, on the consumer-facing makeline, “We’ve got that team member interacting with our guests and making sure they’re getting it right.”
Chipotle and Cava are not the only restaurant companies to look at using Hyphen’s robotic systems.
But Stephen Klein, CEO and co-founder of Hyphen, in a statement said the investment from two of the most iconic brands in fast casual is a testament to the impact the company’s technology has had on restaurant operations.
“We are galvanized by this investment to scale our manufacturing, support our growing customer base, and continue innovating as we build the future of foodservice,” Klein said.
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