Red Lobster, Captain D’s embrace voice AI ordering to drive efficiency, sales in a new era for restaurants

GLOBAL – Red Lobster and Captain D’s have announced major deployments of artificial intelligence (AI) for ordering, reflecting a significant shift in how restaurant brands are using technology to address operational challenges and boost sales.

These two well-known chains are setting the pace for the industry’s second wave of voice AI adoption, aiming to transform guest experiences while balancing convenience and efficiency.

Red Lobster, having emerged from bankruptcy, is partnering with SoundHound to automate phone ordering across 500 locations.

The SoundHound system is trained on Red Lobster’s menu, capable of processing orders and answering questions without staff intervention, and operates whenever the phones ring, even during peak times.

Guests unsatisfied with automation retain the ability to request a transfer to a human operator, maintaining an essential touchpoint for those seeking direct interaction.

By ensuring every potential phone order is addressed, Red Lobster is capturing off-premise revenue that may have previously been lost, reinforcing the importance of non-dine-in sales within casual dining.

Captain D’s, meanwhile, is implementing Presto Phoenix AI at its 525 drive-thru outlets.

This system takes guest orders and upsells seamlessly, eventually aiming to pitch loyalty memberships and recognize repeat customers for personalized offers.

CIO Sean McAnally noted that consistent, AI-driven loyalty program pitches could elevate the guest relationship beyond purely transactional interactions.

The idea is for drive-thru moments to become personalized marketing touchpoints, much like e-commerce brands personalized online shopping.

The push for automation comes as many restaurants face labor shortages and increasing wage pressures.

For both chains, voice AI means faster order processing, improved order accuracy, and more opportunities for upselling and cross-promotion.

Red Lobster’s COO Larry Konecny cited faster, frictionless takeout as a key benefit, allowing staff to focus on providing in-restaurant hospitality.

Notably, industry observers at the FSTEC conference were candid about voice AI’s unproven aspects, referencing pilot programs at chains like McDonald’s and Taco Bell that stumbled due to poor order accuracy or negative experiences among older customers uncomfortable with robotic speech.

Long John Silver’s reported that their core guests generally dislike automated ordering, signaling hurdles remain in adoption among certain demographics.

Nonetheless, the upside for restaurants is substantial. Voice AI offers perpetual availability and scalability, potentially lowering labor costs and enabling consistent upselling.

Margins in the sector remain thin, making efficiency gains increasingly vital. With real-world pilots underway, both chains are demonstrating that the right blend of automation and human touch could become the new baseline for guest service and restaurant profitability.

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