With third-party delivery apps like DoorDash, Uber Eats, and Grubhub charging commissions as high as 30%, restaurant owners are seeking no-commission online ordering solutions to maximize profits. Toast Online Ordering offers a commission-free system with easy integration into the Toast POS, making it an attractive choice for many. But is Toast Online Ordering too good to be true? Hidden in its Terms of Service is a troubling practice: Toast shares your customers’ data with undisclosed third parties, potentially including data brokers or competitors like DoorDash. Add to that misleading claims about custom websites and non-ADA-compliant designs, and Toast’s platform could expose your restaurant to financial and legal risks. In this article, we’ll explore Toast’s features, compare it to competitors like Food Order Pro and ChowNow, and reveal why it might be a scam.
What Does Toast Online Ordering Offer Restaurant Owners?
Toast Online Ordering is a commission-free platform that allows restaurants to take orders directly through their website or a Toast-hosted ordering page, with orders syncing directly to the Toast POS system. According to Toast’s website, its key features include:
- No-commission ordering: Restaurants pay a flat monthly fee (starting at $50-$150/month, depending on the plan) instead of per-order commissions.
- POS integration: Orders flow directly into your Toast POS, streamlining kitchen operations and reducing manual errors.
- Branded ordering page: A customizable page with your restaurant’s branding, accessible via your website, social media, or Google Business profile.
- Custom website and domain: Toast claims to build a custom restaurant website with a unique domain for online ordering.
- Customer data access: Collect customer information like emails and order histories for marketing and loyalty programs.
- Loyalty programs: Tools like discounts or rewards to encourage repeat orders.
These features make Toast Online Ordering appealing, especially for restaurants already using Toast’s POS system. Toast claims it can boost sales by simplifying online ordering and enhancing guest experiences. But hidden drawbacks, including data sharing, misleading website claims, and legal risks, tell a different story.
Toast’s Terms of Service (link) and Privacy Statement (link) reveal that customer information collected through Toast Online Ordering—such as names, emails, phone numbers, addresses, and order histories—is shared with “third-party service providers” and “business partners.” The Privacy Statement states: “Toast may share personal information… with our business partners (including our integration partners) in order to provide, maintain and improve and expand our Services… with third parties to provide, maintain and improve our Services, including service providers who access information about you to perform services on our behalf or on behalf of our Merchants.”
This vague language allows Toast to share your customers’ data with undisclosed entities, potentially including data brokers or third-party delivery apps like DoorDash, Uber Eats, or Grubhub. These apps are highly incentivized to purchase real-time customer data to fuel their marketing machines, targeting your customers with perfectly timed ads or emails to drive orders through their high-commission platforms. For example, if a customer orders through your Toast-powered website, DoorDash could use their email, location, and preferences to send a targeted burger deal at 6 PM, pulling them to DoorDash’s app where you pay 15-30% commissions.
This data sharing offers no benefit to your restaurant but likely generates significant revenue for Toast, as customer data is highly valuable. As a publicly traded company with a fiduciary duty to its investors, Toast is motivated to maximize profits, even if it means compromising your business. Most restaurant owners, busy managing daily operations, don’t thoroughly read Toast’s Terms of Service or Privacy Statement, leaving them unaware that their customers’ data is being shared in ways that could harm their bottom line.
Toast’s Misleading Marketing Tactics
Toast invests heavily in marketing to position itself as a restaurant-friendly solution, but its tactics obscure serious risks. Here’s what we found:
- Exaggerated benefits: Toast claims its Online Ordering can “increase revenue” and “drive repeat business” through loyalty programs and seamless ordering. However, these claims don’t account for how shared customer data may lead to orders through third-party apps, reducing your profits due to commissions.
- Misleading website customization claims: Toast promotes its ability to build a “custom restaurant website” with a unique domain. Upon testing, we found their customization is limited to basic changes like fonts, colors, and a logo at the top. This hardly qualifies as a fully custom website, as it lacks advanced design or functionality tailored to your restaurant’s unique needs, misleading owners about the platform’s capabilities.
- Polished promotions: Toast’s website, videos, and case studies highlight success stories, emphasizing ease of use and POS integration without mentioning data sharing or website limitations.
- Free demos and onboarding: Toast offers free demos and setup support to make adoption easy, creating a sense of trust while glossing over the risks of data sharing and non-compliant websites.
By focusing on commission-free ordering, POS integration, and “custom” websites, Toast downplays how its practices—data sharing and inadequate website designs—undermine the control and value it promises restaurant owners.
Serious Problems with Toast Online Ordering
Beyond misleading marketing, Toast Online Ordering poses significant risks that could harm your restaurant. Here are three major concerns:
1. Loss of Customer Loyalty to Third-Party Apps
By sharing customer data with undisclosed third parties, Toast enables competitors like DoorDash, Uber Eats, and Grubhub to target your customers with precision marketing. For example, these apps can use real-time data (like a customer’s recent order or location) to send targeted promotions, pulling customers to their platforms where you pay high commissions. This undermines Toast’s loyalty programs, as customers are incentivized to order through third-party apps rather than your website, costing you 15-30% per order.
2. Non-ADA-Compliant Websites
Our testing of websites built by Toast for restaurants revealed a critical flaw: they are almost always not compliant with the Americans with Disabilities Act (ADA). This means they may not be accessible to customers with disabilities, such as those using screen readers. Non-ADA-compliant websites expose your restaurant to lawsuits, which are increasingly common and almost guaranteed to result in a loss for the restaurant. In contrast, platforms like Food Order Pro, which we tested and found ADA-compliant, offer a safer option to avoid costly legal battles.
3. Potential Privacy Law Violations
Toast’s data-sharing practices raise concerns under privacy laws like California’s Consumer Privacy Act (CCPA). If customers aren’t clearly informed about how their data is shared with third parties, your restaurant could face legal scrutiny for non-compliance. Toast’s vague language about “business partners” and “service providers” leaves restaurant owners vulnerable, as you’re responsible for ensuring compliance with privacy regulations.
Is Toast Online Ordering a Scam?
We believe Toast Online Ordering operates as a deceptive scam for restaurant owners. Here’s why:
- Data sharing with third parties: Toast shares customer data with undisclosed entities, likely including data brokers or third-party apps like DoorDash, enabling competitors to target your customers and drive orders through high-commission platforms.
- Misleading marketing: Toast exaggerates benefits like revenue growth and “custom” websites, which are limited to basic font and color changes, while failing to disclose how data sharing undermines these benefits.
- Legal risks: Non-ADA-compliant websites and potential CCPA violations expose restaurants to lawsuits and regulatory issues.
- Profit-driven motives: As a publicly traded company, Toast prioritizes investor profits, likely selling valuable customer data to maximize revenue at your expense.
While Toast’s no-commission model, POS integration, and website-building promises are appealing, the hidden practices of data sharing and non-compliant websites betray restaurant owners’ trust. These issues turn a supposed solution into a long-term liability that could cost you customers and legal fees.
What Should Restaurant Owners Do?
Toast Online Ordering’s data-sharing practices and non-ADA-compliant websites make it a risky choice for restaurants aiming to build direct customer relationships. Instead, consider true no-commission platforms that prioritize your business. Options include:
- ChowNow: Serves over 22,000 restaurants with commission-free ordering, transparent pricing, and no data sharing with third-party apps, helping you retain customer loyalty.
- Food Order Pro: Provides white-labeled, ADA-compliant ordering systems that keep customer data secure and exclusive to your restaurant.
- BentoBox: A commission-free platform with customizable, ADA-compliant websites and marketing tools for upscale and fast-casual restaurants.
While these platforms charge monthly fees (typically $50-$150/month), they’re a worthwhile investment to avoid data sharing and legal risks. Before choosing a platform, ask these questions:
- Does the platform share customer data with third parties or competitors?
- Is the website ADA-compliant to avoid lawsuits?
- Are all fees transparent and compliant with local laws?
- Can I retain full control over customer data for my marketing?
- Are success claims backed by verifiable data?
Protect Your Restaurant’s Future
Toast Online Ordering’s commission-free model, POS integration, and promise of custom websites may seem like a win for restaurants, but the reality is far riskier. By sharing customer data with undisclosed third parties, Toast enables competitors like DoorDash, Uber Eats, and Grubhub to steal your customers, costing you high commissions. Non-ADA-compliant websites expose your restaurant to lawsuits you’re likely to lose, and misleading claims about “custom” websites overpromise what Toast delivers. These practices prioritize Toast’s profits over your success.
Instead of trusting Toast’s polished promises, invest in a white-labeled ordering system like ChowNow, Food Order Pro, or BentoBox. These platforms offer commission-free ordering, protect your customer data, and ensure ADA compliance, helping you build a loyal customer base without hidden costs. Protect your restaurant’s profits and reputation by choosing a platform that truly supports your success.
Ready to take control of your online ordering? Check out ChowNow, BentoBox, or contact Food Order Pro for a demo to find a solution that keeps your restaurant safe and profitable.
