Toast Declares War Against VC-Backed Online Ordering Startups With White-label Product
February 22, 2023
White-label ordering startups were highly beloved by VCs up until as recently as early last year, with Popmenu, Lunchbox, Mr. Yum, and Flipdish raising a combined $280mm between Q3 ‘21 and Q1 ‘22. Along the way, Fiserv-owned Clover POS acquired whitelabel restaurant platform Bentobox while Square acquired GoParrot. That left an open question around whether Toast would buy or build. For now, the answer to that question seems to be to build. Over the past two months, the company has quietly begun rolling out its new Toast Online Ordering Pro, a whitelabel online ordering solution, to nearly 50 different restaurants for $125 per month. At scale, this represents an ARR opportunity of ~$118.5mm across its entire set of 79k merchants. The feature is a direct shot against the likes of venture-backed Popmenu, Lunchbox, and ChowNow who have all integrated with Toast’s POS to offer similar customization. As the system of record for its restaurants, Toast is able to seamlessly update out-of-stocks, hours of operations, and delivery/pickup ETAs directly from the POS. The product is an upgrade to its out-of-the-box online ordering solution that is included in its subscription and offers limited customization.