Toast

Founded in 2013, Toast is a POS and restaurant management platform that integrates employees, operations, and guests into a user-friendly platform for point of sale, contactless ordering, handhelds, online ordering, delivery, marketing, payroll, and team management. As of June 2021, the company has partnered with over 40,000 restaurants.

Toast’s POS system does not require a wifi connection to operate thanks to its offline mode feature. The company’s digital ordering solutions are priced between USD 75 - 175 per month. Its  POS pricing plan includes three options depending on the size of the restaurant:

a. Starter (for small restaurants):

1) Pay-as-You-Go plan with an  upfront fee of USD 200 and Platform Rate of 2.99% + USD 0.15 per transaction; and 

2) Standard Plan with an upfront payment of USD 999 + Payment Processing Rate of (2.49% + USD 0.15) per transaction and software subscription of USD 69 per month.

b. Customizable options for restaurants looking to expand into off-premise channels priced at USD 165 per month and up.

c. Growth (to attract new guests and drive repeat visits) priced at USD 272/month.

The company does not charge a commission fee on delivery.  

In February 2020, Toast raised USD 400 million in series F funding. The round was led by Bessemer Venture Partners, TPG, Greenoaks Capital, and Tiger Global Management including the participation of Durable Capital Part. The fresh funds will be used to enhance its technology platform (including hardware and software upgrades), improving the restaurant employee experience, and financial products to grant access to safe and reliable funding for restaurateurs to grow their businesses.  

In April 2020, the company laid off 50% of its staff in response to the Covid-19 pandemic. Affected employees were given a severance package, benefits coverage, mental health support, and an extended window to purchase vested stock options. However, following accelerated demand during the lockdown—which resulted in restaurants retooling for takeout— Toast experienced a turnaround and was valued at USD 8.1 billion by November 2020.  

In February 2021, the company was rumored to be aiming for a USD 20 billion IPO. 

In June 2021, the company acquired xtraCHEF, a provider of back-office tools, such as inventory management and accounts payable automation, for restaurants. The acquisition aligns with Toast’s ongoing product expansion strategy, to compete with competitors who are also expanding their product ranges. The acquisition is expected to support restaurateurs by simplifying the management of routine tasks such as bookkeeping, managing inventory, and tracking margins. The company previously acquired StratEx, a payroll and HR software provider, in July 2019, in order to simplify restaurant HR, payroll, and talent management for its restaurant customers.