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 Estrada
sheryl.estrada@fortune.com
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Fortune 500 Power Moves
Aunoy Banerjee was appointed EVP and CFO of Citizens Financial Group, Inc. (No. 341), effective Oct. 24. As previously announced, current CFO John Woods will depart the bank on Aug. 15. Chris Emerson, EVP and head of corporate planning and enterprise finance, will serve as CFO during the interim period. Banerjee joins Citizens from Barclays, where he currently serves as CFO of Barclays Bank PLC, leading a multifunctional team. Before Barclays, Banerjee served in finance and transformation roles at State Street over eight years, most recently as head of investments and third-party management and chair of State Street India. He also served as chief transformation officer. Banerjee previously spent 11 years at Citi in several roles, including business unit CFO for Capital Markets and Securities Services.
Every Friday morning, the weekly Fortune 500 Power Moves column tracks Fortune 500 company C-suite shifts—see the most recent edition.
More notable moves
Aric McKinnis was promoted to SVP and CFO of FormFactor, Inc. (Nasdaq: FORM). McKinnis succeeds Shai Shahar, who resigned from these positions effective Aug. 8. Shahar will serve as an executive advisor through Dec. 31. McKinnis, who joined FormFactor in August 2019, serves as its VP and corporate controller and was previously corporate controller at MKS Instruments. Earlier, he served in various external audit roles at Deloitte, including audit manager
David Hedley was appointed CFO of Bramshill Investments, an alternative asset management firm. Hedley has been working as the firm's chief strategy officer since 2021. He replaces the firm's former CFO, Gina Cifello, who retired earlier this year. Hedley has over 34 years of experience. Before joining Bramshill, he was a principal and senior managing director at Ernst & Young Capital Advisors, where he led the Technology Investment Banking Group. Prior to EY, he was a senior investment banker at Canaccord Genuity, UBS Investment Bank, Thomas Weisel Partners and Merrill Lynch.
Big Deal
According to July inflation data, the Consumer Price Index (CPI) rose 0.2% month over month, and 2.7% year over year—matching June’s annual pace. Core inflation, which excludes food and energy, edged higher to 3.1% annually, remaining well above the Federal Reserve's 2% target. Flat headline inflation and declining energy prices fueled expectations for a potential rate cut in September. However, analysts cautioned that persistent service-sector costs and possible future tariff impacts could limit further easing in 2025. While markets rallied on the data, Fed officials indicated they remain focused on upcoming jobs reports before making decisions on additional cuts, Fortune reported.
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Overheard
"I disdain corporate speak and owe more than the standard ‘I want to spend more time with my family and Lauren is a great visionary product-centric strategic operator.'"
—Life360 co-founder Chris Hulls wrote in a sign-off blog post. Hulls ignored legal advice and the boilerplate, “I want to spend more time with my family," in an announcement about why he’s leaving the CEO role, Fortune reported.
