Chipotle’s Venture Fund Invests in Robotics Maker

Chipotle Mexican Grill, through its Cultivate Next venture fund, has made an investment in Hyphen, a maker of foodservice robotics.

Hyphen’s first product, The Makeline, is an automated system that utilizes robotics and a customized operating system to give kitchens a reliable and precise way to make and fulfill orders. The Makeline assembles all digital orders under the counter via automated production – it produces over 350 meals an hour while eliminating order defects and food cross-contamination – and allows staff to assemble in-house orders from the top of the counter.

Hyphen’s KitchenOS is a software platform that allows restaurants to create recipes in seconds, fulfill multiple orders from digital channels, and assist with kitchen-specific tasks. Customers of Hyphen include restaurant chains, virtual brands, and co-packers. Hyphen was founded in 2018 and is headquartered in San Jose, California.

“Chipotle’s investment in Hyphen will accelerate our hiring plans; allowing us to invest more heavily in R&D, all while providing the necessary infrastructure to scale sustainably,” said Stephen Klein, a co-founder and CEO of Hyphen. “We’re thrilled to work with Chipotle to find more innovative solutions by removing repetitive tasks from the employee experience so they can focus on creating delicious dishes and providing outstanding hospitality.”

Prior to the investment by Cultivate Next, Tiger Global Management invested $24 million in Hyphen in February 2022. Other investors include Pathbreaker Ventures, Morado Ventures, and Lemnos VC.

Cultivate Next is Chipotle’s $50 million venture fund that makes early-stage investments – seed to series B – in strategically aligned companies. The fund’s investments may include innovations in farming, alternative proteins, supply chains, and advanced robotics like Hyphen. Cultivate Next was launched in April 2022.

“Hyphen is reimagining the intersection between makelines and digital kitchens, with a focus on improving speed and order accuracy,” said Curt Garner, the chief technology officer of Chipotle and the head of Cultivate Next. “Their use of robotics to enhance the employee and guest experience to find efficiencies in the restaurant industry aligns with our mission of leveraging emerging technology to increase access to real food.”

Chipotle Mexican Grill (NYSE: CMG) operates over 3,000 restaurants in the United States, Canada, the United Kingdom, France and Germany. The company, founded in 1993 by Steve Ells and today led by CEO Brian Niccol, has more than 100,000 employees and is headquartered in Newport Beach, California.

© 2022 Venture Capital Investor | July 21, 2022