Toast Introduces Flat-Rate Delivery Program
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:
● Eliminate third-party commission fees: with flat-rate pricing, restaurants can offer delivery and maintain control of their costs. Restaurateurs pay one flat service fee per order - the cost to deliver within a five-mile radius is under $8, versus a percent of sales.
● Take control of expenses: unlike traditional third-party delivery platforms, restaurants have complete flexibility to pass some or all of the delivery fees on to guests. In addition, restaurants can easily maintain separate menus to increase their profit on digital orders.
● Own the guest relationship: with Toast Delivery Services, restaurateurs capture all guest data and can build one-to-one relationships with their customer base while offering safe, contactless, delivery directly from their restaurant. Toast data shows that guests spend 25% more when ordering directly from a restaurant’s own website.
● Offer delivery for both phone and online orders: Toast Delivery Services enables restaurateurs to manage deliveries with both phone and online orders. Guests who want to speak to a person can simply call and request delivery; according to McKinsey, three-quarters of restaurant delivery orders are still placed by phone.
In addition to Toast Delivery Services, Toast unveiled Toast Now, a suite of on-demand, commission-free digital channels including Toast Online Ordering, a mobile ordering app called Toast TakeOut, and electronic gift cards. No Toast Hardware or Toast Point of Sale purchase is required to use Toast Now and it’s free for the first three months.
Restaurant owners and operators can learn more about Toast Delivery Services here and Toast Now here. To learn more about Toast’s call on the federal government to better support the restaurant community during the COVID-19 health crisis, see here.