Hyphen Raises $24 Million to Automate Commercial Kitchens

Hyphen came to wider attention when it emerged from stealth mode in August 2021. Automated food preparation is expected to matter a great deal in the future. Many predicted this in the early days of the pandemic, when stay-at-home orders and concerns about COVID transmission led many restaurant owners to think about which parts of the process they could ultimately automate.

Many likely assumed it would be a temporary problem. Two years into the pandemic, it is probably fair to say our expectations of "temporary" have shifted somewhat. But even though outbreaks have subsided in some areas, finding staff for often low-paid foodservice work remains a challenge.

For this reason, there is strong investor interest in companies promising to help automate industrial kitchens. This side of the equation is starting to catch up with the excitement that has surrounded robotic food delivery for several years. 

Initially, we expect particular attention to go to certain types of food because of how relatively easily they can be automated. For a while, pizza was the obvious first choice due to its simplicity and the fact that most people love pizza.

Salads and bowls are also good candidates. They are self-contained and becoming increasingly popular as a quick lunch option for workers who have less and less time to tear themselves away from their computer screens.

Hyphen, a company developing solutions for automating commercial kitchens, has raised $24 million in funding. Its first product, Makeline, automates the assembly of digital orders for delivery, pickup and drive-thru (without leaving the car). 

Makeline is a modular solution for automating bowl production using a kind of conveyor belt that runs beneath the counter. This last detail is interesting, since many companies position automation as outward-facing. Depending on how you look at it, a robot preparing your lunch may seem like a cool, or at least novel, idea. 

But Hyphen's system relies on putting people up front, partly so there is a face for customers to interact with. The company built Makeline to replace an existing restaurant line. The device can prepare 350 dishes per hour. Hyphen also offers KitchenOS, which uses data collected from Makeline. KitchenOS can provide information such as telling the line cook which items to prepare next and in what quantities. 

Existing Makeline modules:

• cabinets of various sizes for convenience and for configuring different pots
• tray dispensing module (automatically dispenses a bowl or plate so orders keep moving)
• mixing module (creates an ideal distribution of ingredients for salads)
• portion cup filling module (accurately fills portion cups with sauces and dressings regardless of whether they are thick or thin)
• module for precise reheating of pre-prepared ingredients
• beverage module
• staging module (combines several menu items into one order)

The company says its customer count has tripled over the past 12 months. Hyphen plans to use the funds to build its factory, enter new markets, conduct further research and develop next-generation products, and roll out its customer work in the United States. 

The company will hire designers, engineers and operators to support its expansion. Hyphen plans to deploy the Makeline system in five markets over the next two years, but has not yet disclosed details.

“We are very pleased to attract such a strong group of strategic investors to support our mission of putting commercial kitchens on autopilot. Low margins have haunted the restaurant industry for decades, but the pandemic made it worse due to inefficient handling of digital orders and a severe labor shortage. Hyphen addresses this dilemma by automating the assembly process. Our Makeline automates the production of digital orders, while our KitchenOS complements labor with efficient workflows and practical insights”

Stephen KleinCEO and co-founder of Hyphen

The Hyphen system is easy to use:

1. Simple installation. The system requires no plumbing, drains, vents or hoods. Just plug it in and start serving customers on the first day. 
2. Easy integration. Hyphen works with your IT infrastructure: menu management, delivery services, KDS, POS and ERP systems.
3. Quick cleaning. Thanks to its tool-free unlocking features, the system requires no special tools for cleaning. Every component fits in a standard sink or commercial dishwasher.
4. Updates. The system comes with ongoing and scheduled maintenance, allowing you to focus on what matters most.

The funding round was led by Tiger Global, with participation from Steve Fredette, co-founder and president of Toast. Previous investors included Marc Rowan (co-founder and CEO of Apollo Global Management) and Donald Moore (former executive chef and executive vice president of The Cheesecake Factory).

Hyphen was founded in 2020 and is based in San Jose, California. Its goal is to use software and robotics to make food faster, fresher and more accessible. To date, Hyphen has raised a total of $34.4 million.