Red Lobster, Captain D’s Adopt AI Voice Ordering Amid Labor Shortages

Seafood chains Red Lobster and Captain D's are adopting AI voice-ordering systems to combat labor shortages and rising costs. Red Lobster uses SoundHound for phone orders, while Captain D's implements it in drive-thrus, enhancing efficiency and customer service. This reflects a broader industry shift toward automation for operational resilience.
Red Lobster, Captain D’s Adopt AI Voice Ordering Amid Labor Shortages
Written by John Smart

In the fast-evolving world of restaurant technology, seafood chains Red Lobster and Captain D’s are making waves by adopting artificial intelligence for voice-based ordering systems, signaling a broader industry push toward automation amid labor shortages and rising operational costs. Red Lobster, the Orlando-based giant with over 500 locations, has partnered with SoundHound AI to deploy voice automation for phone orders, ensuring every call is answered promptly without tying up staff. This move, announced in late September 2025, allows the AI to handle multiple inquiries simultaneously, process orders, and even answer menu questions, freeing employees for in-restaurant duties.

Meanwhile, Captain D’s, a Nashville-based fast-casual chain specializing in fried fish, is rolling out AI for its drive-thru lanes, becoming one of the latest brands to embrace this tech. According to reports from Restaurant Business Online, both chains are tapping into a surge of voice AI solutions that promise to streamline operations and boost efficiency. The technology isn’t just about convenience; it’s a response to persistent challenges like high turnover rates and the need for 24/7 service reliability.

The Competitive Rush Toward AI Integration

This adoption comes as the restaurant sector grapples with post-pandemic recovery, where labor costs have soared and customer expectations for seamless experiences have intensified. SoundHound’s system at Red Lobster, as detailed in a press release from SoundHound AI, uses advanced natural language processing to understand accents, dialects, and complex orders, reducing errors that plague human-operated lines. Industry insiders note that such tools can cut order times by up to 30%, directly impacting revenue during peak hours.

Captain D’s drive-thru AI, on the other hand, focuses on high-volume, quick-service environments, where split-second accuracy matters. Posts on X, formerly Twitter, from users like Wall Street Mav highlight real-world encounters with automated ordering, underscoring how these systems are already reshaping consumer interactions. One such post described a seamless drive-thru experience at an unnamed chain, fueling speculation and excitement about widespread rollout.

Economic Drivers and Implementation Challenges

The economic rationale is clear: with wage pressures mounting, AI offers a cost-effective alternative. A deep dive from Restaurant Dive reveals that Red Lobster expects the tech to improve front-of-house service by reallocating staff from phones to guest interactions, potentially increasing customer satisfaction scores. However, implementation isn’t without hurdles—training the AI on specific menus and handling edge cases like custom modifications requires significant upfront investment.

Broader industry trends, as covered in Chain Store Age, show a crowded market with startups like Vox and Loman securing funding to compete in voice AI. Red Lobster’s shift from in-house tech to third-party solutions, per another Restaurant Business Online analysis, highlights a strategic pivot to avoid maintenance costs, a lesson for other chains eyeing similar upgrades.

Future Implications for Restaurant Operations

Looking ahead, this could redefine how restaurants operate, especially in segments like quick-service and casual dining. News from Yahoo Finance emphasizes SoundHound’s role in scaling AI across Red Lobster’s network, with potential for integration into apps and kiosks. Captain D’s, by automating drive-thrus, aligns with innovations seen at McDonald’s and DoorDash, where AI handles orders to minimize wait times.

Yet, concerns linger about job displacement and the human touch in hospitality. Industry observers on X, including posts from tech analysts like Rowan Cheung, point to AI’s transformative potential, but warn of the need for ethical deployment. As more chains follow suit, the focus will shift to measuring ROI through metrics like order accuracy and sales uplift.

Strategic Lessons from Seafood Pioneers

For industry insiders, Red Lobster and Captain D’s serve as case studies in balancing innovation with operational realities. The partnership details from Verdict Foodservice suggest that voice AI could become standard, much like online ordering did a decade ago. With the current date marking late September 2025, these deployments are timely amid economic uncertainties, positioning both chains as leaders in tech-driven efficiency.

Ultimately, as automation accelerates, restaurants must navigate the blend of technology and tradition to thrive. This wave of voice AI adoption underscores a pivotal moment, where efficiency gains could redefine profitability in an increasingly competitive arena.

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