Strong Disagreement with the Implementation of Order Processing Fee

[Tarek]

Dear Toast POS Community and support,

I hope this letter finds you well. I am writing to express my deep concern and strong disagreement regarding the recent announcement of implementing a $0.99 Order Processing Fee for customers on orders of $10 and above through Toast Online Ordering Channels. As a long-time customer of Toast POS and a proud owner of a coffee shop that uses Toast, I must emphasize that this decision is both short-sighted and detrimental to the success and satisfaction of our valued customers.

To begin with, the current subscription fee of $50 per month that we already pay is intended to cover the cost of utilizing the Toast POS system and accessing the necessary tools to enhance our business operations. We initially subscribed to Toast with the understanding that it would provide us with a reliable and comprehensive solution for managing our orders efficiently. Implementing an additional fee on top of our existing subscription feels like a breach of trust and an unexpected burden on our business.

Furthermore, the imposition of a $0.99 Order Processing Fee directly contradicts the principles that initially attracted us to Toast POS. One of the key factors that made Toast an appealing choice was the ability to offer pickup ordering to our customers conveniently and without any additional costs. This feature has been instrumental in enhancing our customer experience, driving sales, and ensuring customer loyalty. By introducing this fee, you not only diminish the attractiveness of your platform, but you also risk alienating customers who have come to appreciate the seamless and cost-effective nature of Toast's online ordering system.

While I understand that companies need to innovate and explore new avenues for revenue generation, I strongly believe that this particular approach is misguided. Charging customers an additional fee for using your ordering channels would undermine the trust we have established with our clientele. It is essential to remember that the success of our coffee shop heavily relies on the satisfaction and loyalty of our customers. By implementing this fee, you risk damaging the goodwill we have built with our patrons over the years.

Moreover, the timing of this decision is particularly unfortunate. As the global economy recovers from the challenges posed by the ongoing pandemic, businesses, especially small enterprises like ours, are struggling to regain their footing. Introducing a new charge now would undoubtedly place an unnecessary financial burden on our customers and discourage them from using Toast Online Ordering Channels. Rather than supporting our efforts to rebuild and thrive, this decision appears to be hindering our progress.

I implore you to reconsider this ill-advised decision and rescind the proposed $0.99 Order Processing Fee. Instead, I encourage Toast POS to explore alternative revenue streams or business models that do not involve passing on costs to the very customers who have helped build your brand and platform. As a loyal customer, I genuinely believe that focusing on improving existing services, developing innovative features, and providing exceptional customer support would serve your company's interests far better than introducing additional charges.

I urge you to consider the long-term implications of this decision, both for Toast POS and for the countless businesses like mine that rely on your services. I hope that you will take this feedback seriously and reevaluate the implementation of the proposed fee. Your commitment to listening to the needs and concerns of your customers will undoubtedly play a crucial role in maintaining a positive and mutually beneficial relationship between our businesses.

Thank you for your attention to this matter. I trust that you will make a wise and customer-centric decision that reflects the core values of your company.

Sincerely,

A concerned valued customer of Toast POS

[teriyakisteve]

With the online fee per order, Toast has directly inserted itself between a restaurant and its customers.  99% of our customers don't know, or care, who Toast is. I have had a couple discussions with Toast about this fee, the go to answer is to explain some made up benefits. I am happy to pay Toast for their products -- in the long run, it will be difficult to believe a company that thinks they have the right to set the gross sales amount for my restaurant can be a long-term partner. Today $.99 tomorrow $5.

[ZK]

I agree with the majority of the criticisms in this thread.  We have operated our business in what we believe to be an upstanding & ethical manner for almost 30 years.  Our menu is priced with no additional fees, we even include sales tax in the prices we display to customers.  These hidden fees undermine the trust we've built with our customers & cause damage to our reputation.

Our business is a customer of Toast.  Our customers are not Toast's customers.  Would it be acceptable if our bread supplier decided they wanted a fee directly from our customers every time we sold them a bagel?  Would it be acceptable if our electricity supplier wanted a fee directly from our customers every time the made a purchase?  Absolutely not.  Yet somehow Toast feels like this is an appropriate course of action.

There are a lot of things Toast does well, but the decision to impose a fee directly upon my customers erodes any trust I have that Toast will operate in an upstanding manner and not simply try to squeeze more money out of my customers wherever they can.  Why would I want a mission critical business partner that cannot be trusted?

If Toast needs to generate additional revenue, they should be collecting that from their customers (restaurants), not our customers (restaurant patrons).  Last year I paid Toast an average of $14,000 per month in credit card fees & software subscriptions.  Toast has decided to risk that revenue for an extra $2,500 per month.  If our bills from Toast increased by $2,500 per month (approximately what our customers will pay due to this fee), we might stick with them and adjust our pricing accordingly.  Exploiting our customers, however, is not acceptable nor negotiable.

I am hoping that Toast will reconsider this new fee.

[Jparker]

Totally agree. Toast really needs to reconsider this fee.  It will be perceived as a fee we are adding on. Customers are going to the restaurant's website to order online and being directed to the online platform we pay monthly for to Toast (Toast online services).   The little note will not change that perception.   

Most off our customer are going to our website to order. 

[ZK]

Precisely.  Customers will view this as a fee from the restaurant.  That appears to be by design.

[Rob]

Thanks for reaching out. We understand how important it is to be transparent with your guests on who is charging the fee. For Toast Online Ordering, Toast Local, and Toast TakeOut orders, guests will see “Set by Toast to help provide affordable digital ordering services for local restaurants" if they click on “Taxes & Fees” before checking out for all orders $10 or above. 

If you receive a question from one of your guests, we suggest explaining that the new Order Processing Fee helps Toast keep the price of Online Ordering technology lower for restaurants and provide a seamless ordering experience for guests.