Chipotle and Cava put rivalry on a break with 25 million dollars in betting on the automation of restaurants

Hyphen, a food service platform which automates culinary operations – including the production of meals in assembly stations – has lifted 25 million dollars in series B financing led by the cultivate Next Venture Fund of Chipotle, which invested $ 15 million, and Cava, which contributed $ 5 million with an additional $ 5 million commitment.

“This new financing of two of the most emblematic brands of the rapid industry is a testimony to the impact that the team and Hyphen’s technology have on restaurant operations,” said Stephen Klein, CEO and co-founder of Hyphen, in the announcement published on Tuesday.

Chipotle is a previous investor in Hyphen, but this marks Cava’s first major investment in automation.

“I certainly see a lot of opportunities in Hyphen,” said Cava Tricia Tolivar’s financial director Fortune.

The co-founder and CEO of Cava, Brett Schulman, and the management team think that technology should improve human experience, not replace it, “and Hyphen’s equipment does exactly that,” said Tolivar. The Cava considered union traits and similar concepts for months and is confident that this partnership is a wise decision, she added.

“Chipotle is in rapid space and sees this investment in a similar way, and we are happy to be able to associate with them,” said Tolivar.

Chipotle specializes in Mexican inspiration dishes, with beans, rice, salsa and guacamole, while Cava focuses on Mediterranean flavors such as houmous, tzatziki, feta, fresh vegetables and grains. Both offer grilled meats and compete for brand loyalty among consumers who appreciate fresh ingredients and customizable and personalized meals.

In Cava restaurants, Hyphe will be used for what Tolivar describes as the “second creation line” – an area at the rear of the house where team members prepare all bowls and pitas for digital orders (delivery and collection) separately from catering guests. The Hyphen system will allow team members to prepare a bowl or pita on the top, while automatically producing additional bowls at the bottom from the same ingredients, increasing speed and flow, she explained. The technology also aims to improve the accuracy of digital commands.

“More importantly, it is really a question of facilitating the lives of the members of our team,” she added. The Cava is still in the test phase, it will therefore take a few months before the deployment of technology in restaurants, said Tolivar.

The company announced Tuesday for its second tax quarter completed on July 13 that Cava revenues increased by 20.3% from one year to the next for 278.2 million dollars. About 37% of sales during the quarter were digital, said Tolivar. The second quarter, sales of the same catering increased by 2.1%, while the company opened 16 new net restaurants, bringing the total to 398, an increase of 16.7% from one year to the next.

As for Chipotle, in November, Scott Boatwright became permanent CEO, after the departure of Brian Niccol, who is now Managing Director of Starbucks.