Choosing the right point-of-sale system has become more critical than ever for restaurant success. With labor costs rising and customer expectations evolving, operators need technology that streamlines operations while enhancing the dining experience. Two platforms dominate today’s restaurant POS market: Square and Toast, each offering distinct advantages depending on your specific business needs. Square began as a mobile payment solution and expanded into a versatile business platform serving multiple industries, while Toast was purpose-built exclusively for restaurants from day one. This fundamental difference in approach shapes everything from pricing structures to feature depth, making the choice between them more nuanced than simply comparing specifications.
Square for Restaurants positions itself as an accessible, flexible solution that prioritizes simplicity and transparent pricing. The platform operates on a month-to-month basis with no long-term contracts, making it particularly appealing for new restaurants or those testing different operational approaches. Square’s strength lies in its ability to work across multiple business types and channels, offering genuine functionality even on its free plan that includes basic POS features, online ordering, and team management capabilities.
Toast POS takes a restaurant-first approach, delivering specialized features designed specifically for food service operations. The platform excels in complex environments where detailed menu management, ingredient-level inventory tracking, and sophisticated reporting are essential. Toast’s commitment to the restaurant industry shows in features like advanced table management, course control, and automated tip pooling calculations that address specific operational challenges faced by food service businesses.
The choice between these platforms often comes down to operational complexity and growth trajectory. Quick-service restaurants, cafés, and food trucks frequently find Square’s streamlined approach perfectly adequate, while full-service establishments with complex menus and detailed cost control requirements may benefit from Toast’s specialized depth despite higher costs.
Modern restaurants face unprecedented challenges managing phone orders during peak hours, often missing calls that directly impact revenue. Loman AI offers a specialized solution that complements both Square and Toast systems, providing 24/7 AI for restaurants phone handling that never misses a call or puts customers on hold. Unlike general POS systems that focus on in-person transactions, Loman specifically addresses the phone ordering challenge that costs restaurants thousands in lost revenue monthly.
Loman integrates seamlessly with both Square and Toast POS systems, automatically pushing orders directly to your existing workflow without disrupting established processes. The system handles unlimited simultaneous calls, takes complex orders with modifiers and special requests, answers menu questions, and manages reservations while your staff focuses on in-house guests. This specialization in phone operations positions Loman as an essential complement to traditional POS systems rather than a replacement, addressing a critical gap that neither Square nor Toast fully solves independently.
Understanding the real cost requires looking beyond advertised monthly fees to include processing rates, hardware expenses, and required add-ons. Square’s pricing model offers genuine transparency with a functional free plan that includes POS functionality, online ordering, and basic reporting. Their paid plans start at $69 monthly per location for Square for Restaurants Plus, with consistent 2.6% + 10¢ processing fees across all plans. Hardware costs remain reasonable, starting at $49 for basic card readers up to $799 for the all-in-one Square Register, with the flexibility to use existing iPads or iPhones for payment processing.
Toast’s pricing structure proves more complex and potentially expensive when factoring in essential add-ons. While their starter plan advertises no monthly software fee, it requires higher processing rates of 3.09% + 15¢ per transaction. The Point of Sale plan begins at $69 monthly per location, but critical features like online ordering ($75/month), loyalty programs, and marketing tools require additional subscriptions that quickly accumulate.
Hardware represents another significant cost difference. Toast’s purpose-built restaurant hardware starts around $1,024 for basic countertop setups, though they offer hardware at no upfront cost in exchange for higher processing fees. Square’s approach allows using existing devices or purchasing affordable terminals, significantly reducing initial investment requirements.
Square operates entirely month-to-month with no cancellation fees or long-term commitments, providing flexibility for businesses with uncertain futures or seasonal operations. Toast typically requires two-year contracts with early termination fees, creating substantial commitment for restaurant owners. This difference becomes crucial for new restaurants or those testing new concepts where operational changes may be necessary.
The hardware ecosystem reflects each platform’s core philosophy and target market. Toast’s purpose-built hardware includes Android-based terminals, handheld devices, kitchen display systems, and self-ordering kiosks engineered for commercial kitchen environments. These devices resist spills, heat, and constant use better than consumer-grade alternatives, making them ideal for high-volume operations where reliability is paramount.
Square’s flexible hardware approach allows restaurants to use existing iPads, purchase Square-branded devices, or even accept payments using only an iPhone with Tap to Pay functionality. This flexibility dramatically reduces startup costs and allows for gradual expansion as business grows. Square’s hardware can be purchased from major retailers like Best Buy for immediate availability, while Toast requires ordering through their sales team with potential delays.
Quick-service restaurants and cafés often find Square’s hardware perfectly adequate for their needs, with cost savings allowing investment in other operational areas. Full-service restaurants with complex operations may benefit from Toast’s specialized hardware despite higher costs, particularly in environments where durability and reliability directly impact customer experience.
Food trucks and mobile operations particularly benefit from Square’s lightweight, flexible hardware options that adapt to changing locations and power constraints. Multi-location chains may prefer Toast’s standardized hardware approach for consistent training and maintenance across sites.
The depth of restaurant-specific functionality represents the most significant difference between these platforms. Toast’s restaurant-first design shows in features like sophisticated table management with custom floor plans, advanced course management for fine dining, automated tip pooling calculations, and detailed menu engineering reports. The platform tracks ingredient-level inventory, automatically updating menu availability based on stock levels and providing accurate food cost calculations.
Square’s restaurant features focus on essential functionality with streamlined implementation. The platform offers competent table management, menu customization with modifiers, and basic inventory tracking sufficient for many operations. While lacking Toast’s depth, Square excels in ease of use and quick deployment, making it attractive for operators prioritizing simplicity over detailed analytics.
Toast allows extensive menu customization with nested modifiers, forced modifications, and specialized items for different service periods or locations. The system’s ingredient-level tracking enables automatic menu updates based on inventory availability and provides detailed cost analysis for menu engineering decisions.
Square provides solid menu management with modifiers and variants but operates at the finished-product level rather than ingredient tracking. For restaurants with straightforward menus or those prioritizing ease of management over detailed cost control, Square’s approach proves perfectly adequate.
Toast delivers restaurant-specific analytics that identify profitable menu items, peak service periods, staff performance metrics, and food waste patterns. These insights help optimize operations and identify opportunities for increased profitability.
Square offers comprehensive reporting covering sales trends, payment methods, and staff performance, though with less restaurant-specific depth. The platform’s analytics suit businesses prioritizing general business insights over specialized food service metrics.
Digital ordering capabilities have become essential for restaurant success, with each platform taking different approaches to this critical functionality. Square includes free online ordering with all subscription levels, even the free plan, allowing restaurants to create branded online ordering websites with no monthly fees beyond standard processing rates. The platform provides QR code ordering solutions and integrates with major delivery platforms like DoorDash, Uber Eats, and Postmates through its marketplace.
Toast offers comprehensive online ordering as an additional service costing approximately $75 monthly on top of POS subscriptions. While more expensive, Toast’s solution provides advanced features like automated menu synchronization across locations, customizable delivery zones, and sophisticated order throttling based on kitchen capacity. Toast’s consumer-facing TakeOut app can drive additional direct orders.
Both platforms integrate with major delivery services, though with different cost structures:
For restaurants just beginning online ordering exploration, Square’s included platform offers better value without sacrificing essential functionality. High-volume operations or those with complex online requirements may find Toast’s advanced features justify the additional cost.
Effective inventory control directly impacts profitability, making this a crucial consideration for restaurant operators. Toast provides comprehensive inventory management designed specifically for restaurants, supporting ingredient-level tracking that breaks menu items into component ingredients for real-time usage monitoring. This enables accurate food cost calculations, waste tracking, and precise inventory valuation. Toast’s acquisition of xtraCHEF adds invoice processing, recipe costing, and advanced analytics, though at additional cost.
Square’s inventory management operates at the item level, tracking finished goods quantities with low-stock alerts and bulk management tools. While lacking native ingredient-level tracking, Square integrates with third-party inventory systems like MarketMan and Fresh KDS for more sophisticated requirements, though these add complexity and cost.
Restaurants focused on tight cost control benefit from Toast’s native ability to track ingredients and calculate food costs, providing valuable insights for menu engineering and waste reduction. Operations with simpler menus or those prioritizing ease over detailed analytics may find Square’s streamlined approach adequate, especially considering lower overall costs.
Support quality can significantly impact operations, particularly during busy service periods when technical issues affect revenue. Toast provides 24/7 customer support across all subscription levels through phone, email, and chat, with dedicated implementation specialists for setup and training. However, some users report increasing wait times as the company has grown, with waits exceeding 30 minutes during peak hours.
Square’s support varies by subscription level, with free plan users limited to community forums and email support during business hours. Phone support is available only on paid plans during 6 AM to 6 PM PST, Monday through Friday. This limitation can challenge restaurants operating outside these hours or requiring immediate weekend assistance.
Toast provides mandatory implementation specialists who assist with menu building, hardware setup, and staff training, with setup fees ranging from $499 to $1,500 depending on package complexity. Square emphasizes self-service implementation with intuitive setup wizards and comprehensive documentation, allowing most restaurants to become operational within hours at no additional cost.
Your preference likely depends on technical comfort level and operational complexity. Restaurants valuing hands-on guidance may prefer Toast despite higher costs, while those prioritizing quick deployment and cost efficiency might find Square’s self-service approach more appealing.
A robust integration ecosystem allows your POS system to grow with your business, connecting specialized tools for various operational needs. Square boasts over 300 third-party integrations across multiple business functions, including popular accounting software like QuickBooks and Xero, reservation platforms like OpenTable and Resy, employee scheduling tools like Homebase and 7shifts, and marketing platforms like Mailchimp. This extensive marketplace allows restaurants to customize their technology stack based on specific needs and preferences.
Toast offers approximately 120 restaurant-focused integrations, providing curated quality over quantity with deeply integrated partners specifically chosen for restaurant operations. Key integrations include accounting software, inventory management systems, reservation platforms, and employee management tools. Toast’s more selective approach ensures reliable performance but may limit options compared to Square’s broader marketplace.
Both companies expand their first-party offerings:
For restaurants seeking maximum flexibility in building their technology ecosystem, Square’s extensive marketplace provides more options. Establishments preferring curated, restaurant-specific selections of deeply integrated partners may find Toast’s approach more aligned despite limited selection.
The implementation experience sets the tone for your entire platform relationship and significantly impacts initial operations. Toast follows a structured, hands-on implementation process managed by dedicated specialists, typically taking 2-6 weeks depending on restaurant complexity. This includes consultation, menu building, hardware configuration, and staff training with both remote and on-site support options.
Square emphasizes self-service implementation with intuitive setup wizards and comprehensive documentation, allowing most restaurants to configure systems within hours or days rather than weeks. The platform guides users through menu creation, hardware setup, staff management, and payment processing configuration without mandatory fees or specialists.
Toast typically ships pre-configured hardware ready for immediate use, sometimes requiring professional installation for complex setups. Square’s hardware is designed for plug-and-play operation with minimal configuration beyond Wi-Fi connection and account login. Many Square components can be purchased from retail stores for same-day implementation.
Your implementation preference depends on technical comfort level, timeline requirements, and budget constraints. Restaurants seeking guidance and support may prefer Toast’s structured approach despite higher costs, while those valuing immediacy and cost efficiency might find Square’s self-service model more appealing.
Rather than declaring a universal winner, success depends on aligning POS capabilities with your specific operational requirements, budget constraints, and growth trajectory.
Both Square and Toast successfully power restaurant operations, but the optimal choice requires honest assessment of your specific needs, technical comfort level, budget constraints, and long-term vision. Consider your growth trajectory carefully—while Square scales effectively for many businesses, restaurants with ambitious expansion plans or those evolving toward fine dining may eventually outgrow its capabilities. Conversely, small operations may find Toast’s specialized features unnecessary and costs prohibitive, at least initially.
The most successful restaurant technology decisions align platform capabilities with actual operational requirements rather than theoretical needs. Whether you choose Square’s flexibility and affordability or Toast’s specialized depth and restaurant-specific features, the best system is the one that supports your unique business requirements and growth plans most effectively.
For restaurants looking to maximize efficiency and never miss revenue opportunities, combining either platform with specialized solutions like Loman AI for 24/7 phone handling creates a comprehensive technology ecosystem that addresses both in-person and remote customer interactions. This approach allows you to leverage the strengths of your chosen POS system while ensuring every customer contact translates into revenue, regardless of timing or call volume.
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