Square vs Toast: Complete 2025 POS Comparison
Choosing between Square and Toast? Both are industry leaders, but they serve very different needs. Square shines for small businesses and startups with its free tier and flexibility, while Toast is purpose-built exclusively for restaurants with deep industry-specific features.
Quick Verdict: Choose Square if you want flexibility, no monthly fees, and run a retail or small food business. Choose Toast if you operate a restaurant and need advanced table management, kitchen displays, and 24/7 industry-specific support.
Last updated: December 2025
Square
Best for small businesses & startups
Toast
Built exclusively for restaurants
Quick Verdict
Feature-by-Feature Comparison
| Feature | Square | Toast |
|---|---|---|
| Free POS software | ✓ Yes | Starter plan only |
| Inventory management | ✓ Yes | ✓ Yes |
| Employee management | ✓ Yes | ✓ Yes |
| Online ordering | ✓ Yes | ✓ Yes |
| Advanced reporting | ✓ Yes | ✓ Yes |
| Loyalty program | Add-on | ✓ Yes |
| Table management | Add-on | ✓ Yes |
| Kitchen display | Add-on | ✓ Yes |
| 24/7 phone support | ✗ No | ✓ Yes |
| Offline mode | ✓ Yes | ✓ Yes |
Square
Pros
- Free to start with no monthly fees
- Easy setup and intuitive interface
- Affordable hardware options
- Excellent for mobile payments
- Robust free features
Cons
- Higher processing fees than some competitors
- Limited restaurant-specific features in free plan
- Account stability issues reported
- Add-ons can increase costs
Toast
Pros
- Purpose-built for restaurants
- Excellent table & kitchen management
- Strong online ordering integration
- Industry-leading support
- Robust employee management
Cons
- Restaurant-only (not for retail)
- Long-term contracts often required
- Hardware can be expensive
- Processing fees locked to Toast
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Get Free Custom Quotes Compare pricing from top providers - takes 60 secondsSquare vs Toast: Key Differences
Business Type Focus
The fundamental difference: Square works for any business type while Toast is restaurant-only. If you run a retail store, salon, or service business, Toast is not an option. But if you run a full-service restaurant, Toast’s specialized features give it a significant edge.
Pricing Structure
Square offers a genuinely free tier with no monthly fees – you only pay processing fees. Toast’s “free” Starter plan comes with higher processing rates (2.99% + 15c vs 2.49% + 15c) and often requires a 2-year contract for hardware financing.
Restaurant-Specific Features
Toast excels in table management, kitchen display systems, and menu modifiers. Square for Restaurants has these features but they’re add-ons rather than core functionality.
Who Should Choose Square?
- Small restaurants, food trucks, and cafes
- Businesses that want flexibility to sell retail + food
- Startups on a tight budget
- Those who want month-to-month commitment
Who Should Choose Toast?
- Full-service restaurants and bars
- Multi-location restaurant groups
- Restaurants needing advanced kitchen workflow
- Those who value industry-specific 24/7 support
Frequently Asked Questions
Can I use Toast for a retail store?
No, Toast is exclusively designed for restaurants and food service businesses. For retail, consider Square, Clover, or Lightspeed Retail instead.
Is Square really free?
Yes, Square’s basic POS software is completely free. You only pay processing fees (2.6% + 10c per transaction). Advanced features like loyalty programs and team management require paid add-ons.
Which has better customer support?
Toast offers 24/7 phone support with restaurant industry specialists. Square’s phone support is limited to business hours for most plans, though they offer extensive self-help resources.
Can I switch from Square to Toast later?
Yes, but migration requires careful planning. Toast can import customer and menu data, but historical transaction data typically doesn’t transfer. Plan for 2-4 weeks for a smooth transition.
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