Toast’s New Foodservice Line Aimed at Alleviating Workforce Pressure

Dive brief:

  • The Toast restaurant point-of-sale platform on Tuesday announced a suite of new products that improve the way operators receive money, pay and tip their employees, and manage their operations and delivery networks.
  • The Toast Restaurant Card is a debit card that provides quick access to credit card sales and cash back from specialty restaurant merchants. Toast Order Hub allows restaurants to view data from Toast and third-party delivery channels on a single dashboard. Toast Tip Manager calculates and transfers aggregated tips to Toast Payroll, making tips and wages accessible through the Toast Pay Card (a prepaid debit card) and allowing employees to instantly access a portion of earnings after each shift with PayOut.
  • The product launch follows Toast’s public debut in late September, which raised $ 870 million on day one of the company’s initial public offering. The IPO is one of the largest in restaurant technology for 2021 with a valuation of $ 20 billion.

Dive overview:

Toast’s technology improvements could streamline the operations of restaurants struggling to protect their bottom lines in the face of labor shortages. Seventy-six percent of restaurant workers cited low wages and tips as the main reason for leaving the industry, which could make Payment an attractive recruitment and retention tool.

Three in four restaurateurs say hiring and retaining staff is their number one challenge, pushing big chains and freelancers to raise salaries, offer signing bonuses and roll out new benefits. But for operators who can’t afford to raise wages – at least not to the point of differentiating them from competitors – daily payments could help meet employee demands.

“This is really driven by feedback and customer feedback,” Aman Narang, Toast co-founder, president and COO, said of Tip Manager. “You would see at the end of the night … [restaurateurs] would spend about half an hour …

Narang said automating this process through Tip Manager, which integrates with Toast’s point of sale system, can help operators save time and reduce stress, as well as improve the accuracy of the operation. attribution of tips.

As part of its payment solutions for employees, Toast also offers a prepaid Mastercard debit card, or charge card, which gives restaurant staff another way to collect their pay outside of paper checks or direct deposits. The offer could help restaurant staff avoid late fees, overdraft fees or high-interest payday loans by also giving them access to earlier wages, Toast said in a press release.

“As more and more restaurants opt to pay tips through wages rather than the ability to cash in at the end of the night, the ability to access your payroll in real time is really valuable. “Narang said. “Imagine clocking in, clocking in, and through your card and the app that completes the card, you can see in real time what you won that day. “

A growing number of large restaurant chains and franchisees have launched daily pay options to help with staffing. Jimmy John’s and Taco Bell franchisee Pacific Bells, for example, both partnered with DailyPay in September. The trend started before the pandemic, with Checker’s, Church’s Chicken and Pizza Hut offering same-day and next-day paychecks to employees in 2019.

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