Mediterranean restaurant chain Cava, celebrated for its popular pita chips, is stepping into the automation arena with a significant investment in food technology. The company has committed up to $10 million to Hyphen, a foodservice platform designed to streamline culinary operations like meal production at assembly stations.
This move marks Cava’s first major venture into automation, aligning with the industry’s growing embrace of AI and technology to optimize operations. The $25 million funding round for Hyphen also saw participation from Chipotle’s Cultivate Next venture fund, which previously invested $15 million in July 2024, signaling strong industry confidence in Hyphen’s potential.
Cava’s Chief Financial Officer, Tricia Tolivar, emphasized that the goal of this investment is to enhance, not replace, the human element in their restaurants.
“We believe that technology should enhance the human experience, not replace it, and Hyphen’s equipment does just that,” Tolivar stated in an interview. After months of evaluating various automation solutions, Cava selected Hyphen for its ability to improve efficiency while supporting staff.
The technology will be implemented on the “second-make line,” a back-of-house station dedicated to preparing bowls and pitas for digital delivery and pickup orders. By automating parts of the process, Hyphen enables employees to assemble orders on one level while simultaneously producing additional items below, boosting speed and accuracy.
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The broader restaurant industry is also leaning heavily into AI, as evidenced by Deloitte’s “State of AI in Restaurants” survey, which polled 375 executives across 11 countries. The survey revealed that 80% of restaurant leaders plan to increase AI investments in the next fiscal year, with casual dining brands like Cava prioritizing tools that optimize food preparation.
For Cava, Hyphen’s system is expected to simplify tasks for team members, making their work more manageable while maintaining the quality customers expect. The technology is currently in testing, with a rollout planned in the coming months, positioning Cava to meet the growing demand for fast, accurate digital orders, which accounted for 37% of its sales in the recent quarter.
Financially, Cava continues to show robust growth despite some challenges. In its fiscal second quarter ending July 13, the company reported revenue of $278.2 million, a 20.3% increase year over year, though same-restaurant sales growth of 2.1% fell below analyst expectations.
Cava lowered its same-store sales forecast to 4%–6% from 6%–8% but maintained strong projections for restaurant-level profit margins and adjusted EBITDA. The chain added 16 new locations, bringing its total to 398, a 16.7% increase from the previous year. With plans for 68–70 new openings in 2025 and a long-term goal of 1,000 locations by 2032, Cava is aggressively expanding, with average unit volumes (AUVs) reaching $2.9 million in Q2, up from $2.7 million the prior year.
Cava’s strategic focus on expansion and innovation extends beyond technology to its menu offerings. Tolivar highlighted the introduction of a new cinnamon sugar pita chip flavor served with a side of honey, developed through collaboration with Cava’s chefs. “One of the best parts about being in the office is spending time with our chefs in the kitchen,” she said, expressing enthusiasm for the new product.
