To Toast or not to Toast, that is the question.

If you are someone who looks at POS stations you will have noticed a lot of Toast terminals at your local restaurants. Not any of the chain restaurants, but a lot of the independents. If you are a restaurant owner, that might make you ask yourself, “is Toast right for me”? 

Well, that depends on how you like to operate your restaurant and the relationships you have with your vendors. I know that POS systems are a necessary evil. As a restaurant owner you don’t want to spend your money on technology, that is not an exciting part of your business. The exciting part is the food and the customers, the hospitality, that is why you opened your restaurant. Technology is helpful, sure, but it would be nice to run your restaurant without it. Since that is not feasible in 2022, you have to buy, or better said, partner with a technology provider. But which system is right for you?

Toast may be good if you don’t have money to spend on your new opening and do not really know where your revenues will be in 6 months to a year from now. But, if you are well funded and from experience know that you will be generating over $1 million dollars in the next year, you should think twice about investing in Toast. The software is good but their business model may not be right for you. 

Toast’s business model (along with Square, Clover, SpotOn and others) is to charge their fees as a percentage of your sales so you are investing in Toast with a contract that won't let you out in at least 3 years. Not to mention the hassle it is to change your POS system. No one wants to change their POS until the pain is just too much to take. 

If you know your sales will be north of $1 million dollars annually you should consider purchasing a point of sale system that allows you to choose your credit card processor. Then manage that processor by watching your effective rate (which I will discuss in my next blog post). This approach will give you options nowadays since the model has shifted, but there are companies that still provide the option to use your own processor. Companies like Spark Solutions Group. If having a personal connection and holding your vendor accountable (or better yet allowing us to hold ourselves accountable) give us a call or an email we are happy to discuss your options.