Toast
- Toast is purpose-built for restaurants - it's not a general-purpose processor. If you run a restaurant, cafe, bar, or food truck, Toast is worth serious consideration
- Processing rates are not published - Toast negotiates custom rates, typically 2.49-2.99% + $0.15 for card-present. You must get a quote
- Toast's hardware and software are tightly integrated: online ordering, kitchen display screens (KDS), payroll, team management, and marketing are all built in
- The main risk: Toast hardware only works with Toast processing (same lock-in as Clover). If you leave, the hardware is worthless. And the 2-year contract with early termination fees makes leaving expensive
Toast is the dominant restaurant POS and payment processing platform in the US, powering over 160,000 restaurant locations. It's designed specifically for food service businesses - the software, hardware, and workflows are all built around how restaurants actually operate.
On this page
When to Use Toast
You should use Toast if:
- You run a restaurant, cafe, bar, bakery, food truck, or catering business
- You want online ordering, delivery management, and POS in one platform
- You need kitchen display screens and ticket routing
- You want payroll, team scheduling, and tip management built in
- You're willing to commit to a 2-year contract for the best hardware pricing
Skip Toast if:
- You're not in food service (Toast doesn't serve retail or general services)
- You process under $5K/month (the monthly fees don't justify themselves)
- You want month-to-month flexibility (Toast requires contracts)
- You need to sell online beyond food ordering (Shopify or Stripe is better)
- You want to own portable hardware (Toast hardware is locked to Toast processing)
Pricing Breakdown
Processing Rates
Toast does not publish standard processing rates. Rates are negotiated based on volume, business type, and hardware package. Typical ranges reported by merchants:
| Transaction Type | Typical Rate | Notes |
|---|---|---|
| Card-present (dine-in) | 2.49% + $0.15 | Tap/insert/swipe |
| Card-not-present (online orders) | 3.50% + $0.15 | Toast Online Ordering |
| Keyed-in | 3.50% + $0.15 | Manual entry |
These are approximate. Get a custom quote from Toast for your actual rates.
Software Plans
| Plan | Monthly Fee | What's Included |
|---|---|---|
| Starter Kit | $0/month | Basic POS, payment processing, limited features |
| Point of Sale | $69/month | Core POS features, reporting, menu management |
| Build Your Own | $69+/month | Point of Sale base + add-on modules (online ordering, delivery, loyalty, marketing) |
| Enterprise | Custom | Multi-location management, API access, custom features |
The Starter plan at $0/month comes with higher processing rates (reported around 3.09% + $0.15 for card-present). Toast subsidizes the software cost through higher per-transaction fees.
Hardware
| Device | Price | Best For |
|---|---|---|
| Toast Flex | $0 (with plan) - $799 | Countertop POS terminal |
| Toast Go 2 | $409-$629 | Handheld for tableside ordering and payment |
| Toast Kiosk | $799+ | Self-service ordering |
| Kitchen Display Screen | $499+ | Digital ticket display for kitchen |
| Toast Tap | $0 (with plan) - $69 | Contactless payment reader |
Toast frequently offers "$0 hardware" promotions on the Starter plan. The trade-off is higher processing rates and a longer contract commitment.
Toast's "$0 upfront" hardware offers look attractive but come with strings:
- Higher processing rates (sometimes 0.3-0.5% above standard)
- Longer contract commitment (typically 2 years)
- Early termination fee ($1,000-5,000+)
- You're paying for the hardware through higher per-transaction fees over the contract term
Do the math: If $0 hardware saves you $1,500 upfront but costs 0.4% more on processing, you break even at about $375K in volume. Above that, buying the hardware outright is cheaper.
What Toast Does Well
1. Restaurant-Specific Everything
Toast was built from the ground up for restaurants. Everything is designed around food service workflows:
- Table management with section assignments and waitlist
- Menu management with modifiers, combos, and time-based pricing (happy hour)
- Kitchen display screens (KDS) that route tickets to the right station (grill, fry, cold)
- Tip management with tip pooling, credit card tip tracking, and tip reporting
- Split checks by seat, item, or custom amounts
2. Online Ordering Built In
Toast Online Ordering integrates directly with your POS:
- Orders flow straight to your kitchen display
- Menu syncs automatically (no double-entry)
- Integrated delivery management
- Commission-free ordering (unlike DoorDash/UberEats which take 15-30%)
- Toast TakeOut app gives you visibility to Toast's customer network
3. Payroll and Team Management
Built into the platform (additional fee):
- Employee scheduling and shift management
- Clock-in/out from the POS terminal
- Payroll processing with tip calculations
- Compliance tracking (breaks, overtime)
- New hire onboarding
4. Reporting for Restaurants
Toast's reporting is designed around restaurant metrics:
- Sales by daypart (breakfast, lunch, dinner)
- Menu item performance and food cost tracking
- Labor cost as percentage of sales
- Server performance and tip averages
- Product mix reports for menu optimization
What Toast Does Poorly
1. Opaque Pricing
Toast doesn't publish rates, making comparison difficult:
- You can't check pricing without talking to a sales rep
- Rates vary widely between merchants (reports range from 2.49% to 3.5%+)
- The Starter plan's "free" hardware comes with premium processing rates
- Hard to know if you're getting a good deal
2. Hardware Lock-In
Toast hardware only works with Toast processing:
- If you cancel, the terminals become e-waste
- A $2,000-5,000 hardware investment is lost if you switch
- No processor portability
- Same problem as Clover, but Toast's hardware is more expensive
3. Contract Commitment
Toast typically requires 2-year contracts:
- Early termination fee: $1,000-5,000+ (varies by deal; approximately $150/month for remaining contract term)
- No month-to-month option for most plans
- Auto-renewal clauses (cancel 30+ days before renewal)
- Contrast with Square: zero contract, cancel anytime
4. Not for Non-Restaurants
Toast is exclusively for food service:
- No retail features (barcode scanning, inventory by SKU)
- No general service business features (appointments, memberships)
- No e-commerce beyond food ordering
- If your business changes, you need a different processor
Toast vs. Square vs. Clover: Restaurant Comparison
| Factor | Toast | Square for Restaurants | Clover |
|---|---|---|---|
| CP rate | ~2.49-3.09% + $0.15 | 2.6% + $0.10 | 2.3% + $0.10 |
| Monthly software | $0-69+ (plus add-ons) | $0-149 | $14.95-94.85 |
| Online ordering | Built-in, commission-free | Square Online (basic) | Via third-party apps |
| Kitchen display | Native KDS | Requires third-party | Via third-party apps |
| Tableside ordering | Toast Go handheld | Square Terminal ($299) | Clover Flex ($599) |
| Payroll | Built-in (add-on) | Square Payroll (add-on) | Third-party |
| Contract | 2 years typical | Month-to-month | Varies (beware ISOs) |
| Hardware lock-in | Yes | Minimal (cheap readers) | Yes |
| Best for | Full-service restaurants | Cafes, small restaurants | Multi-industry, some restaurants |
Bottom line:
- Toast wins for full-service restaurants that want an all-in-one platform and don't mind the contract
- Square wins for small restaurants, cafes, and food trucks that want flexibility and low upfront cost
- Clover wins for restaurants that also do retail or want the lowest per-transaction rate
Who Toast Is Best For
Perfect Fit
| Business Type | Why Toast Wins |
|---|---|
| Full-service restaurants | Table management, KDS, tableside ordering are built for this |
| Multi-location restaurants | Centralized management, menu syncing across locations |
| Fast-casual with online ordering | Commission-free online ordering saves 15-30% vs third-party apps |
| Bars and breweries | Tab management, pre-auth, tip workflows |
| Catering businesses | Event ordering, invoicing, large-party management |
Poor Fit
| Business Type | Better Alternative |
|---|---|
| Retail stores | Square or Clover |
| Online-only food | Stripe + ordering platform |
| Coffee shops/cafes (simple) | Square (cheaper, no contract) |
| Food trucks (solo) | Square (free reader, no monthly fee) |
| Want lowest cost | Clover (2.3% CP) or Helcim |
Common Gotchas
1. The Starter Plan Trap
The $0/month Starter plan with free hardware is designed to get you in the door:
- Processing rates are higher (sometimes 3.0%+ CP)
- Feature limitations push you to upgrade
- The contract makes it expensive to leave
- Calculate total cost over 2 years, not just monthly software fees
2. Third-Party Delivery Integration Fees
While Toast Online Ordering is commission-free, integrating with DoorDash, UberEats, or Grubhub through Toast still incurs those platforms' commissions (15-30%). Toast just centralizes the orders into your POS.
3. Payment Processing Is Required
You cannot use Toast POS with a different payment processor. The hardware and software are locked to Toast's processing. This is non-negotiable.
4. Add-On Costs
Many useful features are paid add-ons beyond the base plan:
- Payroll: ~$90+/month + $4-9/employee
- Marketing and loyalty: $75+/month
- Scheduling: included in some plans, add-on in others
- These add up quickly
Test to Run
Toast cost comparison (before committing):
- Get a quote from Toast (request it in writing with all fees)
- Calculate your current monthly processing cost (or estimate with Square rates)
- Compare total cost, not just processing rate:
Toast total monthly cost:
Processing: (volume x rate) + (transactions x per-txn fee) = $___
Software: $___/month
Hardware: $___/month (amortized over 24 months)
Add-ons (payroll, marketing, etc.): $___/month
Total: $___
Square total monthly cost:
Processing: (volume x 2.6%) + (transactions x $0.15) = $___
Software: $0-60/month
Hardware: $0-799 (amortized over 24 months)
Total: $___
Key question: Is Toast's restaurant-specific software (KDS, online ordering, payroll) worth the premium over Square? For many full-service restaurants, yes. For simple cafes, usually no.
Next Steps
Considering Toast?
- Get a written quote with all fees (processing, software, hardware, add-ons)
- Compare total 2-year cost vs. Square and Clover
- Ask about the early termination fee before signing
- If possible, negotiate: request lower processing rates in exchange for buying hardware outright
Already on Toast?
- Check your effective rate: total fees / total volume
- Compare to the rates in your contract (are they matching?)
- Review add-on charges - are you using everything you're paying for?
- If your contract is ending, use renewal as leverage to negotiate better rates
See Also
- Square - Simpler alternative for small restaurants
- Clover - Multi-purpose POS with lower CP rates
- Processor Comparison - Full comparison table
- Card-Present Terminal Decisions - Choosing hardware