Good morning. As automation gains momentum in the food service industry, Mediterranean restaurant chain Cava—known for fan favorites like pita chips—is making its first major investment in the space.
Cava has invested $5 million in Hyphen—a foodservice platform that automates culinary operations such as meal production at assembly stations—and committed an additional $5 million, subject to terms. The $25 million funding round was also backed by Chipotle’s Cultivate Next venture fund, which previously invested $15 million in July 2024.
“We believe that technology should enhance the human experience, not replace it, and Hyphen’s equipment does just that,” Cava CFO Tricia Tolivar told me. After months of evaluating Hyphen and similar concepts, the company is confident this partnership is a smart move, she added.
Deloitte’s recent “State of AI in Restaurants” survey—based on interviews with 375 restaurant executives across 11 countries—found that 8 in 10 expect to
increase their AI investments in the next fiscal year. Casual dining brands, in particular, prioritize benefits such as optimizing food preparation.
At Cava, Hyphen will be used on what Tolivar calls the “second-make line”—a back-of-house station where staff prepare all bowls and pitas for digital delivery and pickup. The system lets employees assemble a bowl or pita on the top level while automatically producing additional bowls below from the same ingredients, boosting speed and digital order accuracy, she said. “Most importantly, it’s really about making our team members’ lives easier,” Tolivar said. Cava is still testing the technology and expects to roll it out in a few months.
‘Whitespace opportunity’For its fiscal second quarter ending on July 13, Cava
reported on Tuesday revenue of $278.2 million, up 20.3% year over year. About 37% of sales were digital. Same-restaurant sales rose 2.1%, below analyst estimates, but the company outperformed the broader industry trend of same-store declines. Cava lowered its same-store sales forecast to 4%–6%, down from 6%–8%, while maintaining expectations for restaurant-level profit margins of 24.8%–25.2% and adjusted EBITDA of $152 million–$159 million.
The company added 16 net new restaurants in the quarter, bringing its total to 398—a 16.7% increase from last year. Cava raised its 2025 net new openings forecast to 68–70, up from 64–68, and continues to target 1,000 locations by 2032.
Alex Fascino, an equity analyst at CFRA Research, commented on Cava’s expansion plans in a Tuesday research note. “In our view, this strategic pivot toward prioritizing expansion over same-store sales growth validates the substantial whitespace opportunity and unit growth potential in the current market backdrop,” he wrote.
Cava’s 2025 new-restaurant class is on track to deliver average unit volumes (AUVs) above $3 million, ahead of expectations. Overall AUV for Q2 2025 was $2.9 million, up from $2.7 million a year earlier.
The AUV or average sales for each location is increasing across the country, Tolivar said. “Not only are you seeing it in Detroit, Indianapolis, and Chicago, but in smaller cities like Lafayette, Louisiana or Burlington, North Carolina.”
Tolivar also revealed a new flavor of the Cava’s popular pita chips—cinnamon sugar served with a side of honey.
“One of the best parts about being in the office is spending time with our chefs in the kitchen,” she said. “I’ve been part of this journey and the evolution, and I think they’ve nailed it.”
Sheryl Estradasheryl.estrada@fortune.com 