Toast implements 99c fee to online ordering channels, says BTIG

Toast is implementing a 99c fee to consumers of “Toast Online Ordering Channels” on orders greater than $10, as stated by the terms and conditions section of the company’s website, BTIG analyst Andrew Harte tells investors in a research note. The firm says operators are going to be irritated but do not have much negotiating power while consumers are likely to look past the 99c fee on Toast’s online ordering capability. The move provides a positive upside revenue opportunity that could be meaningful overtime but also a potential nexus with the Biden administration’s “junk fee” push, which “warrants watching,” the analyst tells investors in a research note. The big outstanding question is what percentage of orders come through “Toast Online Ordering Channels,” BTIG adds. It estimates Toast could generate $52M of online ordering fee gross profit during fiscal 2024 and says it is unclear if online ordering revenue is included in the company’s guidance. The firm keeps a Neutral rating on the shares.