You might be charged a new 99-cent fee on food orders — and some restaurants are fuming

Thought your recent rice bowl or burrito purchase sounded a bit expensive this week?

Well, don't assume your local restaurant has jacked up menu prices, again. Instead, you might have to fault the restaurant's digital ordering tech provider, Toast. 

Toast, which works with 85,000 restaurants in the US, is charging consumers a 99-cent fee for online orders over $10. The fee went into effect nationwide July 10 to fund ongoing innovation that levels "the playing field for restaurants" looking to keep digital orders in-house, the company said.

Toast, whose restaurant clients tend to be independent restaurants and regional chains, launched as a payments platform more than a decade ago. Toast's tech stack has grown to include a slew of services for restaurants including pay-at-the-table devices, inventory management software, digital ordering systems, and a rewards program.

"As we innovate we remain committed to keeping restaurant digital ordering costs low and protecting restaurant bottom lines from third-party commission fees," the company told Insider in a statement.

But some customers and restaurants are balking at the fee.

"Guess it's time to delete the ⁦@ToastTab⁩ app - just another $ grab by greedy company. I'll be happy to call an order in or just order in-person," one person Tweeted on June 20.

Grant Austin, whose Twitter profile describes him as the creative director for Freddy J's Bar & Kitchen, posted on July 8: "How does $0.99 per online order to my customers help Toast continue to innovate me when I pay over $700 per month on top of the credit card fees you collect?"

Baglesbyjarre called the fee a scam in two posts. "Shame on @ToastTab for adding a 99 cent fee to our customers orders that they take 100% of after we pay the highest fees to begin with. Shame on you toast #ToastTab #Scam."

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The New Jersey bagel shop then wrote that it would be giving its customers a 99-cent promo code, "so now we will be paying 99 cents."

Tony Naser, a pizza shop owner in Toast's home state of Massachusetts, told Fox Business: "People are freaking out. Business owners are freaking out."

Gil Brucken, who describes himself on Twitter as a senior manager in the restaurant tech field, said it "makes no sense" for a restaurant provider to charge guests such fees. 

"Shouldn't the operator decide whether this fee should be paid for by the guest or absorbed as the cost of doing business? Taken further, Will Toast later start charging fees for guests dining in at restaurants as the cost of using their POS?"

Food tech strategist  Carl Orsbourn said Toast provides an "exquisite" all-in-one technology stack for restaurants.

But he questioned whether the online fee of 99 cents might hurt independent restaurants who are already "struggling like crazy" to lure guests to order through their online channels, instead of delivery apps.

"If that's a $10 order, that's a 10% increase. If it's a $20 order, that's a 5% increase. That's a big whack of an increase if you ask me," Orsbourn said recently in his podcast, "The Digital Restaurant."  "I think this additional fee is going to cause some real consternation."

Toast said the fee is transparent so the customer knows it is not tacked on by the restaurant.

When customers click on "taxes and fees," they will see the following prompt: "Set by Toast to help provide affordable digital ordering services for local restaurants."

 Are you a restaurant insider with insight to share? Got a tip? Contact this reporter via email at nluna@insider.com.