Red Lobster Is the Latest Restaurant to Add an AI Phone-Ordering System

SoundHound AI Inc., a provider of artificial intelligence-based voice technology, said Red Lobster Hospitality LLC will roll out SoundHound’s AI-powered phone-ordering system across the restaurant chain’s more than 500 locations.

The system will enable SoundHound to field all incoming calls for takeout orders, provide answers to common customer questions, such as restaurant hours and menu items, and send orders directly to Red Lobster’s point-of-sale system.

The phone ordering system is expected to prevent lost phone orders due to customers being put on hold or getting a busy signal when calling in, as well as free up restaurant staff to better serve guests.

“By sending orders directly to the point-of-sale system, it frees up employees to focus on greeting guests and providing … food with exceptional service,” Ben Bellettini, senior vice president of restaurant sales at SoundHound, says by email. “Also, with every single call answered by AI, it prevents the frustration and loss of customers who might otherwise hang up after being put on hold or getting a busy signal.”

SoundHound’s phone-ordering system can recall previous guest orders using the customer’s phone number, making it easy for repeat customers to order their favorite menu items, Bellettini says. The system can also connect to a live agent customers who prefer not to place orders through an automated system.

“This streamlined process ensures a more personalized and efficient experience for every customer—and it builds customer loyalty for the brand,” Bellettini adds.

Restaurants are increasingly adopting AI-powered phone-ordering systems to help overcome labor shortages, reduce stress on restaurant help, and reduce revenue lost to missed phone orders, as the AI can answer every phone call, regardless of how busy the restaurant is, observers say. 

“The move towards AI systems is fueled by the growing customer demand for convenient, fast service that provides a consistent and efficient ordering experience,” says Bellettini.

Red Lobster filed for bankruptcy protection in May 2024 and shed approximately 100 of its restaurants, bringing its location count to approximately 545.