Hyphen Raises $24M Series A Led by Tiger Global to Automate Restaurant Industry
SAN JOSE, Calif.–(BUSINESS WIRE)–Hyphen, an automation company that uses software and robotics to help improve efficiency and consistency in commercial kitchens, today announced a $24 million Series A funding round. dollars led by Tiger Global, with participation from Steve Fredette, co-founder and president of Toast, Inc. Existing investors who also participated in this oversubscribed round include Marc Rowan, co-founder and CEO of Apollo Global Management; Donald Moore, former culinary director and executive vice president of The Cheesecake Factory; and more.
Hyphen has raised $34.4 million to date and will use the funds to build its factory, expand into new markets, invest in R&D for next-generation products, and roll out to customers across the United States. . With the new funding round, Hyphen is aggressively hiring designers, engineers and operators to support their five-market expansion plans this year and next.
“We are thrilled to bring on such a strong group of strategic investors to support our mission to put commercial kitchens on autopilot,” said Stephen Klein, CEO and co-founder of Hyphen. but the pandemic has exacerbated this with inefficient digital order fulfillment and massive labor shortages. Hyphen solves this dilemma by automating the assembly process. Our Makeline automates the production of digital orders, and our KitchenOS augments the workforce with efficient workflows and actionable insights.
In mid-2021, there were 1.7 million job openings in the food service and accommodation sector; the highest number ever recorded. Experts predict that “industrialized countries will have more job openings than workers to fill them.” As millions of workers left the industry, order inaccuracy increased by 22%. As significant labor pressures continue to impact the $1.6 trillion restaurant industry through 2022, restaurants and food suppliers are increasingly turning more toward automation to help their businesses not just survive, but thrive.
Hyphen’s first product, The Makeline, automates the assembly of digital orders (delivery, takeout, drive, QR code). The Makeline is designed as a one-to-one replacement for a restaurant’s existing makeline and requires no remodeling or plumbing, making installation frictionless. The Makeline produces 350 meals per hour and eliminates ordering errors without taking up an extra inch of space.
Hyphen’s KitchenOS leverages data from the fully instrumented Makeline to provide actionable insights, such as notifying line cooks what foods to prepare next and how much, based on real-time ingredient levels. Additional features include restaurant-specific custom workflows, unit-level performance, recipe development, and live menu updates.
Over the last twelve months, Hyphen has tripled its number of customers, who have booked hundreds of Makelines. At planned production capacity, Hyphen has sufficient demand for the next two years and will begin taking new bookings later this year for deployments in 2024.
“Amid labor shortages and growing customer demand for takeout and delivery, restaurants need ways to increase throughput and improve efficiency. Hyphen has created an intuitive and reliable solution that does both,” said Griffin Schroeder, Partner, Tiger Global. “We are thrilled to partner with Stephen, Daniel and their team to support restaurants across the country.”
About the hyphen
Founded in 2020 by Stephen Klein and Daniel Fukuba, Hyphen is a San Jose-based foodservice automation platform that supports restaurants with software and robotics to make food faster, fresher and more accessible. Hyphen’s first product is a robotic production line that produces 350 meals per hour while eliminating ordering flaws such as missing ingredients and cross-contamination. The Makeline can easily be interchanged with a restaurant’s existing makeline without the need for plumbing or drainage. Through its KitchenOS, the platform enables restaurants to develop recipes, fulfill multiple orders from digital channels (i.e. web, app, drive-thru) while increasing work with actionable information. More information can be found at usehyphen.com.