Choosing between Toast and Square POS is one of the most important technology decisions you'll make for your restaurant. Both are industry leaders, but they serve very different types of restaurants — and one wrong choice could cost you thousands in hidden fees.

After analyzing both platforms, talking to restaurant owners, and reviewing the latest pricing and features, here's everything you need to know to make the right decision for your business.

Quick Comparison: Toast vs Square POS

Modern restaurant POS systems run on tablets, making them more affordable and flexible than legacy systems

Before diving deep, here's a side-by-side overview:

Bottom line: Square offers more flexibility and transparency. Toast offers more restaurant-specific features but comes with contractual commitments and potential hidden costs.

Pricing Breakdown: The Full Truth

Payment processing fees add up quickly — a 0.5% difference can mean thousands annually

Toast POS Pricing

Toast's pricing structure has multiple tiers:

• Starter Kit: $0/month (but higher processing rates at 2.99% + $0.15)
• Point of Sale: $69/month per terminal
• Build Your Own: Custom pricing, typically $100-165+/month

The catch: Toast requires you to use their proprietary hardware and payment processing. You cannot bring your own processor, which locks you into their rates.

Hardware costs add up fast:

• Toast Flex terminal: $799-1,099
• Kitchen Display System: $449+
• Handheld devices: $409+ each
• Installation: $250-500

Square for Restaurants Pricing

Square's pricing is more straightforward:

• Free Plan: $0/month (covers basics)
• Plus: $60/month per location
• Premium: Custom pricing for high-volume restaurants

Processing fees: 2.6% + $0.10 for card-present transactions, regardless of plan.

Hardware flexibility: Square works with iPads you may already own. Their first-party hardware is also reasonably priced:

• Square Stand: $149
• Square Terminal: $299
• Kitchen Display: $399

Real Cost Comparison

For a restaurant doing $30,000/month in card sales:

The difference is marginal at this volume — but Toast's contractual obligations and hardware lock-in create hidden costs.

Toast's Hidden Fee Controversy

Understanding your POS fees requires digging into the fine print — not all costs are transparent

In 2023, Toast made headlines for implementing a controversial 99-cent fee on online orders over $10 — charged directly to customers without restaurant consent.

Here's what happened:

• Toast unilaterally added the fee to all online orders
• Restaurants couldn't opt out or disable it
• The fee appeared as if it came from the restaurant, damaging their reputation
• Congress launched an investigation into the practice

Toast eventually rolled back the policy after backlash, but it revealed something important about their business practices: they're willing to make unilateral changes that affect your customers and reputation.

As one restaurant owner put it: "When you sign with Toast, you're not just buying software — you're buying the people behind the software. And these people showed they have no problem doing whatever they want without your consent."

Other Hidden Costs to Watch

• Early termination fees: Toast contracts often include hefty cancellation penalties
• Add-on pricing: Features like online ordering, loyalty programs, and marketing tools cost extra ($50-229/month each)
• Hardware depreciation: If you leave Toast, your proprietary hardware becomes worthless
• Rate increases: Toast can increase processing rates, and you're locked in

Square's Transparency Advantage

Square's flexible hardware options let restaurants start small and scale up

Square takes the opposite approach to pricing:

What you see is what you get:

• No contracts (month-to-month billing)
• Processing rates don't change based on your plan
• Hardware works with standard iPads
• Add-on features have clear, published pricing
• You can leave anytime without penalty

Add-on costs are reasonable:

• Payroll: $35/month + $6/employee
• Loyalty program: $45/month
• Marketing: $15/month
• Team management: Free with Plus plan

The Trade-off

Square's simplicity comes at a cost: it's less restaurant-specific than Toast. Features like:

• Complex modifier management
• Coursing and seat-based ordering
• Kitchen display routing
• Detailed food cost tracking

...are more robust in Toast. For simple operations, Square excels. For complex full-service restaurants, Toast's features might justify the higher costs and lock-in.

Feature Comparison Deep Dive

Menu Management

Toast:

• Unlimited menu items and modifiers
• Time-based menu switching (lunch vs dinner)
• 86ing items in real-time
• Ingredient-level inventory tracking
• Recipe costing built-in

Square:

• Unlimited items with the Plus plan
• Modifier groups and variants
• Time-based pricing
• Basic inventory tracking
• No built-in recipe costing

Winner: Toast for complex menus, Square for simple operations

Table Management

Toast:

• Visual floor plan builder
• Server section assignment
• Table timers and status
• Reservation integration (OpenTable, Resy)
• Waitlist management

Square:

• Floor plan with table mapping
• Cover counts and tracking
• Basic table timers
• Limited reservation integration
• Waitlist included with Plus

Winner: Toast for full-service, Square for casual dining

Online Ordering

Toast:

• Commission-free online ordering
• Integrates with DoorDash, Grubhub, UberEats
• Branded mobile app available
• QR code ordering for dine-in
• Extra cost: $75/month+

Square:

• Commission-free through Square Online
• Third-party integrations available
• QR code self-serve ordering
• Pickup and delivery options
• Included in Plus plan

Winner: Tie — both offer strong online ordering, but Square includes it in the base price

Reporting and Analytics

Toast:

• Real-time sales dashboards
• Labor cost tracking
• Menu item performance
• Employee tip tracking
• Predictive analytics (higher tiers)

Square:

• Sales trends and comparisons
• Labor vs sales reporting
• Customer insights
• Inventory alerts
• Export to accounting software

Winner: Toast for depth, Square for accessibility

Who Should Choose Toast?

Full-service restaurants with complex operations benefit most from Toast's specialized features

Toast is the better choice if:

1. You run a full-service restaurant with complex coursing, modifiers, and table management needs
2. You're willing to commit to a 2+ year relationship in exchange for restaurant-specific features
3. You need advanced features like kitchen display routing, ingredient-level inventory, and labor management
4. You're opening multiple locations and need enterprise-level tools
5. You value restaurant-specific support over general business tools

Toast's Ideal Customer Profile

• Full-service restaurants
• Bars with food programs
• High-volume quick-service
• Multi-location operators
• Established restaurants with complex menus

Who Should Choose Square?

Square is the better choice if:

1. You want flexibility and the ability to switch providers without penalty
2. You're cost-conscious and want predictable, transparent pricing
3. You run a simpler operation like a café, food truck, or counter-service restaurant
4. You already own iPads or want to use standard hardware
5. You're just starting out and need a low-risk entry point

Square's Ideal Customer Profile

• Cafés and coffee shops
• Quick-service restaurants
• Food trucks and pop-ups
• Small independent restaurants
• New restaurant owners

Alternatives Worth Considering

If neither Toast nor Square feels right, consider these alternatives:

Lightspeed Restaurant: Best for restaurants wanting advanced features without Toast's contract lock-in. Starts at $69/month with flexible hardware options.

TouchBistro: iPad-based POS with strong kitchen display features. Best for small-to-medium full-service restaurants. Starts at $69/month.

Clover: Flexible hardware and pricing through local resellers. Good for restaurants wanting customized solutions.

Fuudey: If you primarily need QR code ordering and digital menus, Fuudey offers a free tier with ordering and payment processing — no POS hardware required.

Making Your Decision

Here's a simple framework:

1. Calculate your monthly card volume — higher volumes make processing rate differences more significant
2. List your must-have features — do you need coursing, table management, kitchen displays?
3. Consider your commitment level — are you comfortable with a 2-year contract?
4. Evaluate your growth plans — will you open more locations? Need enterprise features?
5. Request demos from both — test the actual interface with your menu

Quick Decision Guide

Frequently Asked Questions

Can I switch from Toast to Square later?

Yes, but it's costly. Toast's proprietary hardware becomes worthless, and you may face early termination fees. Many restaurants report $5,000-10,000+ in switching costs after accounting for new hardware, data migration, and staff retraining.

Does Square work for full-service restaurants?

Yes, Square for Restaurants handles full-service operations well, including table management, coursing, and split checks. However, it's less feature-rich than Toast for complex operations.

Which has better customer support?

Toast offers 24/7 restaurant-specific support, which many operators prefer. Square's support is more general-purpose but still responsive. Both offer extensive online resources.

Are there any free restaurant POS options?

Both Toast and Square offer free tiers. Square's free plan is more usable for ongoing operations. Toast's free option has higher processing fees that offset the savings.

Which POS is better for online ordering?

Both are strong. Square includes online ordering in its Plus plan ($60/month), while Toast charges extra ($75/month+). For QR-code-based ordering specifically, consider Fuudey as a complementary or standalone solution.

Conclusion

The right POS choice depends on your restaurant's specific needs, budget, and growth plans

Toast is the better choice for established full-service restaurants willing to commit to a longer-term relationship in exchange for powerful, restaurant-specific features.

Square is the better choice for cost-conscious operators, new restaurants, and simpler operations that value flexibility and transparency over specialized features.

Whichever you choose, remember that your POS is just one part of your restaurant technology stack. Consider how it integrates with your online ordering system, digital menu, and payment processing needs.

The most expensive POS is the one that doesn't fit your operation. Take the time to demo both, talk to other restaurant owners, and make the choice that serves your specific needs.