Disclaimer: This article is for Lunchbox 2.0 customers only. If your dashboard header looks the same as below, you are in the right place:
A restaurant can choose to assign different service charges per delivery dining option should they wish to help cover the cost of costly delivery fees, PPE, or expensive paper products.
NOTE: List of suggested Service Charge Names by Product Type:
Native Ordering Only:
LB Delivery Fee
Catering Only:
LB Catering Delivery Fee
Native & Catering Together:
LB Delivery Fee
Limitations
Take Out Service Charges are not currently supported
We do not currently support Delivery Fees that are set to be calculated on post-discount total.
We do not automatically support Delivery Fees that are set to be taxed. This type of Delivery Fee Requires a Dev Escalation to have applied.
When using Open $ Delivery Fees for flexible pricing we must ensure that Send Delivery Charge Amount is enabled on the Global POS Provider. This step must be completed by a member of the Lunchbox team. Please contact your Lunchbox account manager to assist in getting this setting configured.
Creating Flexible Delivery Service Charges (Open $)
This is used for Restaurants that want to charge varying amounts for their Delivery Orders.
NOTE: Creating this Open $ service charge allows our team to take over the logic of the discount and allow the POS to ingest any charge amount that we send to the POS.
!!! When using Open $ Delivery Fees for flexible pricing we must ensure that Send Delivery Charge Amount is enabled on the Global POS Provider. This step must be completed by a member of the Lunchbox team. Please contact your Lunchbox account manager to assist in getting this setting configured !!!
Step 1: From the Toast Admin Dashboard homepage click on Payments > Service Charges
Step 2: Click on the + Add button
Step 3: Enter a name for the service charge in the Name field (ie. Lunchbox Delivery, LB Catering Delivery)
Step 4: Next ensure the following settings are in place…
Target and Owner are targetted to appropriate Grouping of Restaurants. If you are on MLM an Open $ discount can be assigned to all locations since we are sending through any value built into the POS. If you are not on MLM it is important to communicate the charge by location using your configuration workbook. We always recommend setting the value to Open Amount to allow for easier editing on service charges in Lunchbox.
Set the following as a Charge Type to Open amount - allows a variable service charge amount to be applied to the order.
Apply After Amount threshold at $0.00
Assign to check owner (Gratuity)? No, Assign the fee to the restaurant
Step 5: Next, determine how you want that tax calculated for the service charge
NOTE: The Taxed? setting is typically only applied to auto gratuities. Because some employers keep a portion of service charges, the IRS considers automatic gratuities to be revenue for the business and the dollars distributed to staff as non-tip wages. This means that service charges are treated as regular wages for tax purposes. If a service fee requires that tax be charged a ticket will need to be escalated to engineering.
Step 6: Set which dining options the service charge should be applied to
Delivery - No
Takeout - No
Dine-in - No
WARNING! Be very careful with this setting since it is built based upon the dining behavior and will apply to all orders within that category. Be careful to place test orders to ensure that the proper fees are applying to the appropriate dining options. Lunchbox will overwrite the setting for Delivery Fee Service Type, Service Charge Assignment.
Step 7: Click Save and then Publish Now (Service Charges Targeted to a single location)
Creating Flat Delivery Service Charges
This is used for Restaurants that are looking to charge a flat delivery fee for their online ordering.
Step 1: From the Toast Admin Dashboard homepage click on Payments > Service Charges
Step 2: Click on the + Add button
Step 3: Enter a name for the service charge in the Name field (ie. Service Fee, Delivery Fee, etc)
Step 4: You have the option to set the amount of the service charge or allow the amount to be open.
The following options are available as a Charge Type:
Fixed percent - allows you to set the service charge amount as a percentage of the check (ie. 5%)
Fixed amount - allows you to set the service charge amount as a fixed dollar amount (ie. $4)
NOTE: Lunchbox does not support Toast’s Apply After Amount Threshold setting.
Step 4: Set Assign to check owner (Gratuity)? to No, Assign the fee to the restaurant.
NOTE: Not setting this to ‘No, Assign the fee to the restaurant' will cause checks to not close out properly in Toast resulting in a balance due being shown.
Step 5: Next, determine how you want that tax calculated for the service charge
NOTE: The Taxed? setting is typically only applied to auto gratuities. Because some employers keep a portion of service charges, the IRS considers automatic gratuities to be revenue for the business and the dollars distributed to staff as non-tip wages. This means that service charges are treated as regular wages for tax purposes. If a service fee requires that tax be charged a ticket will need to be escalated to engineering.
Step 6: Set which dining options the service charge should be applied to
WARNING! Be very careful with this setting since it is built based upon the dining behavior and will apply to all orders within that category. Be careful to place test orders to ensure that the proper fess are applying to the appropriate dining options. Lunchbox will overwrite the setting for Delivery Fee Service Type, Service Charge Assignment.
Step 7: Click Save and then Publish Now (Service Charges Targeted to a single location)
Note: If using MLM be sure to Publish Configuration to all affected locations.