Toast introduces Toast Delivery Services to enable restaurants of all sizes with an on-demand delivery network of local drivers — free of commissions. Toast Delivery Services provides restaurant owners with the flexibility to offer food delivery for a simple, flat rate; when compared to third-party delivery marketplaces, a restaurant processing $5,000 in delivery saves over $600 per month in commission fees with Toast.
Jarett Berke, owner and operator of Lou’s Restaurant & Bakery in Hanover, New Hampshire, said, "I’m worried about the future of our industry. If we continue to allow delivery apps to charge exorbitant fees and claim all of our profit as their own, we will never recover from the changes brought on by the pandemic. Most of us have profit margins in the single digits; yet, delivery companies charge up to 30% on every order. We should have access to our customer data. Toast is committed to helping us make this happen."
Third-party delivery services are under fire. A proposed class-action lawsuit was filed in federal court on April 13 alleging third-party delivery services including DoorDash, Grubhub, Postmates and UberEats, are using "unlawful" tactics. Cities too are taking notice of the fees as more consumers are relying on delivery during the COVID-19 pandemic and restaurants, with dining rooms closed across the country, are struggling to survive. In San Francisco the mayor made an emergency order that temporarily limits the fee that delivery companies can charge to 15% and will be in effect until restaurants are allowed to resume in-restaurant dining. In New York, proponents are pushing for a 10% cap on third-party delivery fees.
Toast Delivery Services is an on-demand solution that does not require a Toast Point of Sale or Toast Hardware purchase. Specifically designed to help the restaurant community adapt during the COVID-19 health crisis and beyond, Toast Delivery Services empowers any restaurant to service any delivery order, as well as: