Shares of SoundHound AI (SOUN) jumped sharply as the company announced its voice AI technology will power phone ordering at all Red Lobster locations nationwide. Following the announcement, SOUN stock rose 4.27% on Tuesday and added another 1.0% in pre-market trading on Wednesday.
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For context, SoundHound AI specializes in voice recognition and natural language processing, providing AI solutions across industries. Meanwhile, Red Lobster is a popular American casual dining restaurant chain.
SoundHound AI to Streamline Phone Orders
As part of this partnership, Red Lobster is rolling out SoundHound’s AI-powered phone ordering system across all its locations. The technology can handle multiple calls at once, take orders, and answer common questions about menu items and hours. The AI system is trained on the full menu to make ordering faster and more efficient. After that, orders are sent directly to Red Lobster’s point-of-sale system, reducing in-store staff workload.
The partnership ensures every phone call is answered, even during busy times, while letting Red Lobster staff focus on in-person service quickly.
For SoundHound, partnering with a major brand like Red Lobster marks a significant milestone for the company, showcasing the rising demand for its voice AI services in the restaurant industry. Notably, Ben Bellettini, SVP of Restaurant Sales at SoundHound, said the company’s voice ordering services are in strong demand, with consumers quickly recognizing the benefits of its fast system.
Is SOUN Stock a Good Buy?
According to TipRanks, SOUN stock has received a Moderate Buy consensus rating, with five Buys and two Holds assigned in the last three months. The average SoundHound stock price target is $15.33, suggesting a potential downside of 15.07% from the current level.
