Restaurant owners today face more technology decisions than ever before, with point-of-sale systems at the center of daily operations. Toast and Square have captured the majority of market attention, each promising to solve the common pain points plaguing food service businesses across the country. Your POS selection will determine how smoothly your staff processes orders during rush hours, how effectively you track inventory costs amid ongoing inflation, and how seamlessly you integrate with the delivery apps that now drive 30% of restaurant revenue.
Toast positions itself as a restaurant-specific solution built from the ground up for food service establishments, offering specialized features like course management, table mapping, and kitchen display integration that work seamlessly together. The system excels at handling complex modifications and split checks, making it particularly valuable for full-service restaurants. Its menu management allows for detailed item customization, automatic 86-ing of out-of-stock items, and easy category organization that streamlines daily operations.
Square originally started as a general payment processor but has evolved into a comprehensive restaurant solution with notably intuitive interfaces requiring minimal staff training. Its POS allows for check splitting, item modifications, and table management, though some users find it less sophisticated than Toast for high-volume table service operations. Square’s free plan includes basic restaurant POS functionality with unlimited devices, providing significant value for budget-conscious operations.
Both platforms offer order routing to kitchen displays, customizable floor plans, and tip management, but Toast generally provides more depth in these areas. Toast’s coursing capabilities allow for precise timing control between kitchen and service staff, while Square’s simplicity makes it more accessible for casual restaurants and cafes. The learning curve is steeper with Toast, but establishments with multiple service types benefit from its specialized workflows compared to Square’s more standardized approach.
The hardware ecosystem represents one of the most significant differences between these platforms. Toast offers purpose-built, Android-based hardware designed specifically for restaurant environments, engineered to withstand spills, heat, and general wear from busy kitchen operations. The Toast Go 2 handheld device features all-day battery life, drop resistance, and screens visible in direct sunlight for outdoor service areas.
Square takes a different approach, offering compatibility with consumer-grade devices like iPads while providing its own hardware options. Square’s Register (priced at $799) provides a sleek countertop solution, while its Terminal ($299) offers portability. The Square Reader for contactless payments costs just $49, allowing restaurants to leverage existing equipment and scale hardware investments according to budget constraints.
Toast’s hardware packages typically start around $799 for a single terminal, with handhelds costing approximately $600 each. Square’s ability to work with standard iPads significantly reduces initial investment costs, though consumer-grade tablets may not withstand restaurant conditions as effectively. Many restaurant owners report replacing iPads every 1-2 years in high-volume environments, while Toast’s hardware typically lasts 3-5 years under similar conditions.
For restaurants prioritizing durability and longevity, Toast’s higher upfront costs may translate to better value over time. Establishments with lower volume or those needing maximum flexibility might benefit from Square’s more affordable, adaptable hardware approach that doesn’t lock them into proprietary systems.
While Toast and Square excel at managing in-store operations, Loman delivers specialized AI for restaurants focused on capturing every call and maximizing revenue opportunities. This innovative platform provides a 24/7 AI phone agent specifically designed for restaurant operations, ensuring no customer call goes unanswered during busy periods or after hours. Loman integrates seamlessly with existing POS systems including Square, Toast, and Clover, creating a comprehensive technology ecosystem without disrupting current workflows.
Loman’s AI agent is trained on your restaurant’s specific menus, policies, and customer preferences, delivering accurate order taking and reservation management that rivals human staff performance. The system reduces missed calls, shortens customer wait times, and improves sales conversion by handling multiple simultaneous calls with consistent service quality. Built-in analytics and real-time insights provide restaurant owners with actionable data for better decision-making, while the fast setup process gets operations live in under a day and scales effortlessly for single locations or multi-location businesses.
Unlike Toast and Square which focus primarily on transaction processing and order management, Loman addresses the critical gap in customer communication that costs restaurants thousands in lost revenue monthly. Whether you’re using Toast’s comprehensive restaurant features or Square’s user-friendly interface, Loman complements these platforms by ensuring every customer interaction opportunity is captured and converted into revenue.
Understanding payment processing fees is crucial for restaurant profitability, as these percentages significantly impact your bottom line over time. Toast offers a traditional pricing model with rates starting at 2.49% + $0.15 per transaction for its standard plan, plus a pay-as-you-go option with higher processing rates (starting at 3.09% + $0.15) but no monthly software fees. This tiered approach allows restaurants to choose between higher monthly subscriptions with lower processing fees or no monthly fees with higher transaction costs.
Square’s processing fees are more straightforward but generally higher for in-person transactions at 2.6% + $0.10 per transaction, increasing to 2.9% + $0.30 for online orders. Unlike Toast, Square doesn’t negotiate custom rates for most small to medium-sized businesses, though high-volume establishments may qualify for custom pricing. Square’s transparent fee structure eliminates surprises but might cost more for high-volume operations.
Toast charges different rates for various card types, with American Express at 3.29% + $0.15 compared to 2.49% + $0.15 for other cards. Square charges the same rate regardless of card type, simplifying fee calculations. For restaurants with significant online ordering volume, Square’s online processing rate (2.9% + $0.30) proves more competitive than Toast’s (3.5% + $0.15).
Toast requires a processing contract typically lasting 2-3 years, while Square operates month-to-month with no cancellation fees. This flexibility represents a significant advantage for new restaurants uncertain about their longevity or those wanting to avoid long-term commitments.
Square offers an impressive free online ordering solution that integrates seamlessly with its POS system, allowing restaurants to quickly set up branded online ordering pages with no monthly fees beyond standard processing charges. The platform supports delivery through DoorDash Drive integration, customer-facing order tracking, and automatic menu syncing with in-store POS systems. Square also enables ordering through Google, Instagram, and Facebook, expanding digital footprint without additional effort.
Toast’s online ordering platform, while powerful, comes at additional cost through either monthly fees (typically $75) or commission on each order (around 3% plus standard processing fees). However, Toast offers more advanced features than Square’s free solution, including delivery zone management, customizable delivery fees based on distance, and sophisticated order throttling during peak times. Toast’s platform includes advanced marketing tools like automated abandoned cart emails and customizable promotions specific to online orders.
Both systems integrate with third-party delivery platforms like DoorDash, Uber Eats, and Grubhub, though Toast offers more comprehensive integration options. Toast’s delivery management system allows restaurants to track and manage all delivery orders through a single interface regardless of origin. Square’s third-party delivery integrations, while functional, require more manual intervention to consolidate reporting across platforms.
For restaurants where takeout and delivery represent significant revenue portions, Toast’s robust features may justify additional costs. Smaller operations or those beginning to explore online ordering might find Square’s free solution provides excellent value without financial commitment.
Toast stands out with comprehensive inventory management features including ingredient-level tracking that automatically depletes inventory as items are sold, calculates real-time food costs, and generates variance reports to identify potential waste or theft. The system tracks theoretical versus actual usage, allowing precise identification of inventory discrepancies while supporting automated purchase order generation based on par levels and vendor catalog integration.
Square’s inventory management capabilities are more limited, offering item-level tracking but lacking ingredient-level tracking essential for restaurants with complex recipes. Square requires third-party integrations like MarketMan or Craftable for sophisticated restaurant inventory management. These integrations work well but add overall cost and system complexity. Square does offer automatic inventory depletion and low-stock alerts, sufficient for cafes or quick-service establishments with simple menu items.
Toast’s acquisition of xtraCHEF has enhanced its inventory capabilities, adding invoice processing, recipe costing, and advanced analytics that track price fluctuations from suppliers and automatically update recipe costs. Square has no comparable native feature, though its open API allows custom integrations with specialized inventory systems.
The following inventory management capabilities distinguish these platforms:
Toast’s loyalty program allows customers to earn points based on spending with customizable reward structures and automatic redemption options, capturing customer data through the POS without requiring app downloads. The system builds comprehensive profiles and enables targeted email campaigns based on visit frequency, spending habits, and menu preferences for precise customer segmentation.
Square’s loyalty program operates through phone number collection during checkout, creating frictionless point earning experiences. Square’s Customer Directory automatically builds customer profiles tracking visit history and purchase patterns. The platform’s marketing tools include email campaign management, digital gift cards, and feedback collection, plus social media integration for seamless promotion across Instagram and Facebook.
Both systems offer birthday rewards, win-back campaigns for lapsed customers, and new customer acquisition tools. Toast charges additional fees for these features (typically $75/month for loyalty and $75/month for email marketing), while Square’s loyalty program starts at $45/month with email marketing included in Restaurant Plus subscriptions ($69/month).
Square’s advantage lies in integrating customer data across different business types, providing unified customer views for restaurants with retail components or multiple concepts. Toast excels in restaurant-specific engagement with features like order-ahead promotions and menu-specific targeting.
Toast’s analytics platform provides restaurant-specific reports focused on operational efficiency, menu performance, and labor management. Its “Menu Engineering” report identifies high-profit and high-velocity items, helping optimize menu design and pricing strategy. Toast offers detailed labor reports analyzing productivity by employee and shift, allowing managers to identify top performers and optimize staffing levels through real-time dashboards.
Square’s reporting system emphasizes user-friendly visualization and accessibility with dashboard presentations of key metrics in intuitive formats easily understood without extensive analytics experience. Square’s reports cover sales patterns, item popularity, and customer trends with segmentation capabilities by various parameters. The system particularly excels at customer analytics, tracking repeat visit rates and average spend patterns over time.
While both systems provide comprehensive data, Toast generally offers more restaurant-specific metrics and operational insights including theoretical versus actual food cost analysis, server performance metrics, and detailed tip reporting. Square’s strength lies in cross-platform analytics, particularly valuable for businesses operating multiple concepts or combining restaurant and retail operations.
Toast requires higher-tier subscriptions for advanced reporting features, while Square includes most analytics capabilities in standard offerings with advanced features available in Plus plans ($69/month). The choice depends on whether you need deep operational insights or accessible, straightforward analytics with lower financial commitment.
Toast offers comprehensive implementation experiences with dedicated onboarding specialists providing customized setup, menu building, and on-site training. This hands-on approach typically takes 2-4 weeks and includes hardware installation, staff training sessions, and post-launch support. Toast charges implementation fees (usually $499-$1,499 depending on restaurant size) but provides thorough preparation for smooth transitions with 24/7 customer support via phone, email, and chat.
Square takes a self-service implementation approach with systems designed for easy self-setup using intuitive menu building tools and online resources. This means faster deployment (often within days) and no implementation fees, but requires more effort from restaurant staff. Square provides email and chat support for all users, with phone support limited to business hours and paid subscription tiers only.
Toast’s support team consists of restaurant industry veterans understanding unique food service challenges, providing invaluable expertise when troubleshooting complex operational issues. Square’s support team serves businesses across industries and may have less restaurant-specific knowledge, though Square’s simpler system generally requires less ongoing support than Toast’s complex platform.
For restaurants with limited technical resources or complex operations, Toast’s comprehensive implementation and specialized support may justify additional costs. Tech-savvy operators with straightforward needs might appreciate Square’s self-service approach and lower implementation costs.
Toast offers three primary pricing tiers starting with a free starter kit with higher processing fees (3.09% + $0.15), a standard plan at $69/month with lower processing fees (2.49% + $0.15), and custom enterprise pricing for larger operations. Essential features require additional monthly fees including online ordering ($75/month), loyalty programs ($75/month), and gift cards ($50/month), plus proprietary hardware requirements with starter packages beginning around $799.
Square’s pricing structure starts with a free plan including basic POS features and online ordering, with processing fees of 2.6% + $0.10 per transaction. Their Plus plan ($69/month) adds advanced reporting, unlimited KDS displays, and premium features. Square’s hardware costs are generally lower since the system runs on standard iPads, though Square’s hardware ranges from $49 for card readers to $799 for registers.
The following cost considerations differentiate these platforms:
For typical single-location restaurants processing $50,000 monthly, Toast’s annual cost (including software, amortized hardware, and processing fees) ranges from $18,000-$25,000 depending on selected features. Equivalent Square implementations typically cost $15,000-$20,000 annually, with cost gaps widening for simple operations and narrowing for complex restaurants needing Toast’s specialized features.
Your optimal choice depends on specific business needs, operational complexity, budget constraints, and growth plans rather than general industry recommendations. Toast emerges as the superior option for full-service restaurants with complex operations, especially those prioritizing durability, specialized restaurant features, and comprehensive training support. Its robust inventory management, detailed analytics, and purpose-built hardware provide exceptional value for establishments with high transaction volumes, complex menus, and multiple service areas.
Square presents a more attractive solution for new restaurants, quick-service establishments, cafes, and operations with limited technical resources or tight budgets. Its strengths include affordable startup costs, transparent pricing, contract-free flexibility, and user-friendly interfaces requiring minimal training. Square’s free online ordering platform and integrated marketing tools provide exceptional value for restaurants building their digital presence.
Before making your final decision, carefully assess your restaurant’s most critical operational challenges and prioritize features that directly address these pain points. Consider arranging demonstrations of both systems and speaking with similar restaurants using each platform. Remember that the “best” system isn’t necessarily the one with the most features, but rather the one that most effectively supports your unique business model and growth strategy.
By aligning your selection with specific operational needs, you’ll ensure your POS system becomes a valuable tool for building a successful, sustainable restaurant operation. Whether you choose Toast’s comprehensive restaurant-focused approach or Square’s versatile, budget-friendly platform, pairing your POS with Loman’s AI phone agent creates a complete technology solution that captures every revenue opportunity while streamlining operations for maximum efficiency and profitability.
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