When it comes to managing a restaurant, choosing the right point-of-sale (POS) system is crucial. Two popular options in the market are Toast and Square. Each offers unique features, pricing models, and user experiences. To help you make an informed decision, you need to know the comparison of Toast and Square, highlighting their pros and cons.
What are Toast and Square?
Toast is a cloud-based POS system specifically designed for the restaurant industry. It integrates various functions, such as order management, payment processing, and customer relationship management (CRM), into one platform. The system is known for its user-friendly interface and robust features tailored to the needs of restaurants, cafes, and bars.
Square, on the other hand, is a versatile payment processing system suitable for various businesses, including retail, food service, and online sales. Its flexibility allows small business owners to accept payments easily, manage inventory, and analyze sales data. Square is particularly known for its straightforward pricing and simple setup, making it a popular choice for small businesses.
Toast POS vs. Square: How They Compare
See how Toast and Square stack up in different areas:
Target Market
Toast: Toast is made specifically for restaurants. It has features that help with food service tasks, like managing menus, making table reservations, and keeping track of ingredients.
Square: Square works for many types of businesses, not just restaurants. It’s a flexible option that suits small cafes, retail shops, and service providers.
User Interface and Ease of Use
Both Toast and Square are designed with user-friendly interfaces, but they cater to different types of users.
Toast: Its interface is optimized for restaurant staff, allowing for easy navigation through menus, tables, and orders. The system provides intuitive functionalities tailored to restaurant workflows, making it easier for staff to manage orders efficiently.
Square: Square’s interface is also simple but more general-purpose. It caters to a variety of businesses, which may necessitate more customization for restaurant-specific needs. Square offers a more straightforward layout that may be easier for non-restaurant businesses to adapt.
Hardware Compatibility
Toast: Toast provides its hardware, including touchscreen terminals, kitchen display systems, and handheld devices for tableside ordering. This all-in-one solution simplifies setup and ensures all components work seamlessly together.
Square: Square offers a range of hardware options, including a card reader, register, and stand. While Square’s hardware is generally compatible with various devices, you may need to invest in additional accessories for optimal use in a restaurant setting.
Customer Relationship Management (CRM)
Building customer relationships is crucial in the restaurant industry. Let’s explore how both systems approach CRM:
Toast: Toast’s CRM features allow you to collect customer data, manage loyalty programs, and analyze customer preferences. This data can help restaurants tailor their marketing efforts and enhance customer experiences.
Square: Square also offers CRM features, including customer directories and engagement tools. While these features are beneficial, they may not be as integrated or tailored for restaurants as Toast’s offerings.
Customer Support
Toast: Toast offers customer support mainly through email and phone during business hours. This may not be the best for restaurants that need quick help during busy times.
Square: Square provides 24/7 customer support through chat and phone, so users can get assistance whenever they need it.
Detailed Feature Comparison
Monthly Fees
Toast: Costs range from $0 to $165, with custom pricing options available.
Square: There’s a free version, and the in-depth retail features cost $60 per month for each location.
Transaction Processing Fees
Knowing the transaction fees is important when looking at Toast and Square:
Toast Transaction Fees: These fees are usually higher than Square’s. For instance, The Toast processing fees are typically around 2.99% + 15¢ per transaction, depending on the plan you choose. Toast also provides a seamless experience for diners, allowing for quick payments and tips right at the table.
Square Transaction Fees: Square generally has lower fees. They charge 2.6% + $0.10 for in-person transactions and 2.9% + $0.30 for online transactions. However, Square also has different rates for various types of transactions, such as online payments or invoices.
Payment Processing Options
Both systems provide strong payment processing features:
Toast Credit Card Processing: This is built directly into its POS system, allowing smooth transactions right through its hardware. Toast typically charges 2.49% + $0.15 for each card payment made in person. You might pay less if your business is very large.
Square Credit Card Processing: Square is well-known for being easy to use on different platforms, including online sales, making it a great choice for businesses with various sales methods. Charges 2.6% + $0.10 for each card payment made in person. It also charges 3.5% + $0.15 if you type in card numbers.
Inventory Management
Managing inventory is essential for restaurants:
Toast Inventory Management: Toast offers advanced tools for tracking perishable items and generating menu performance reports. This helps restaurants manage their stock levels effectively.
Square Inventory Management: Square provides basic inventory tracking but doesn’t have some of the advanced features that Toast offers.
Online Ordering Capabilities
Online ordering is becoming more important for businesses:
Toast Online Ordering: This feature is included in its system, but it may come with extra costs based on the plan.
Square Online Ordering: Square offers a free online ordering platform that includes integration with Google Ordering, making it simple for small businesses to use.
Pros and Cons of Square and Toast
Toast
Pros:
- Designed specifically for the restaurant industry
- Robust features for order and inventory management
- Seamless credit card processing
- Comprehensive CRM tools
Cons:
- Higher monthly fees compared to Square
- May require training for staff unfamiliar with the system
Square
Pros:
- No monthly fees for basic services
- Easy setup and integration
- Versatile for various types of businesses
- Transparent pricing model
Cons:
- May lack restaurant-specific features
- Limited inventory management for larger establishments
Which POS Software Should You Choose?
Choosing between Toast and Square ultimately depends on your restaurant’s specific needs. Here are some factors to consider:
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- Type of Business: Toast may be the better option if you run a full-service restaurant requiring extensive management tools due to its tailored features. Conversely, if you run a small café or food truck, Square’s flexibility might suit your needs.
- Budget Considerations: If you prefer a no-monthly-fee model, Square is an appealing choice. However, if you value comprehensive features and are willing to pay a higher monthly fee, Toast could provide better long-term value.
- Feature Requirements: Assess what features are most important for your operations. If you need advanced inventory management and CRM tools, Toast may be the way to go. If your needs are simpler, Square may suffice.
Find the Best POS System for Your Restaurant
Picking the right point-of-sale (POS) system is important for running your restaurant smoothly. Toast and Square each have their own strengths. Toast is designed specifically for restaurants and offers great tools for managing orders and inventory, as well as customer relationships.
Meanwhile, Square is a flexible option that works well for many types of businesses and makes it easy to accept payments. Your decision should depend on what your restaurant needs, your budget, and which features are most important to you.