Major restaurant chains Chipotle and Cava are investing in automated kitchen technology from startup Hyphen as the industry seeks solutions to labor challenges, rising costs, and shifting consumer demand. The San Jose-based company’s robotic makelines are designed to accelerate order throughput while reducing food waste and operational chaos.

Hyphen’s system, which can assemble a bowl or salad every 10 to 15 seconds, operates largely out of sight beneath a counter, using robotic arms to precisely portion ingredients. Chipotle has invested $25 million through its venture fund, while Cava contributed up to $10 million as part of Hyphen’s Series B funding round last August. The capital will support scaled production and broader U.S. rollout.

“We’re probably making a bowl every 10 to 15 seconds. At peak throughput, we have more capacity usually than they do demand,” said Hyphen co-founder and CEO Stephen Klein. The units cost between $50,000 and $100,000, with most clients achieving a return on investment within a year.

The technology addresses persistent industry pain points: labor shortages in repetitive roles and excessive food waste. By tracking ingredients “down to the gram,” the system helps control costs. During rare downtime, staff can manually complete orders—similar to an escalator becoming stairs.

Hyphen emerged from a pivot during the pandemic. Klein and co-founder Daniel Fukuba initially built a fully robotic food truck but shifted to licensing their technology to existing restaurants when COVID-19 hit. Today, the company is in talks with major brands and institutional food-service providers for campuses and office parks, with plans to develop backend software for kitchen management.

Notably, Hyphen is targeting high-volume, high-customization concepts—not traditional fast food. “That’s kind of our strike zone,” Klein said.

The push toward automation comes during a difficult period for the sector. Shares of Cava and Chipotle are down nearly 50% and 40% year-to-date, respectively, reflecting broader pressures including pullbacks from younger consumers. Competitor Sweetgreen, which sold its own robotics unit this year, has seen its stock decline nearly 80%.

As restaurants grapple with efficiency and margin pressures, Hyphen’s technology represents a strategic bet on automation to enhance scalability and consistency in a challenging market.