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 service charges per 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:
Lunchbox Takeout
Lunchbox Delivery
Catering:
LB Catering Takeout
LB Catering Delivery
Limitations
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.
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.
WARNING: This format will not work if you also have delivery fees set to automatically assign to delivery orders in the POS. At this time the over write behavior cannot be overwritten and both fees will apply.a
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 Takeout, Lunchbox Delivery, LB Catering Takeout, LB Catering Delivery)
Step 4: Next ensure the following settings are in place…
Target and Owner are targetted to appropriate Grouping of People. 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 or Rocketlane.
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)?
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.
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. You should not apply a fee to a dining option when delivery fees vary platform to platform.
Example: If you have a higher delivery fee for 3P than you do for Lunchbox orders you should not select ‘yes’ because it will apply the fee to both 3P and Lunchbox orders.
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.
Creating Additional Item As A Service Charges
For service charges that are assigned to non-delivery service types these will need to be built into the menu as an item.
Step 1: From the Toast Admin Dashboard home page go to Menu > click Advanced Properties
Step 2: Click into the blue link of the name of the menu that is being used for Lunchbox to enter the menu and scroll down to Groups, hit Add and create a group named Packing Instructions, Additional Service Charges & Open Item.
Note: If this group has already been built do not build another one simply click into the group and proceed to step 4.
Step 3: At the top right-hand corner of the screen hit Save.
Step 4: Click into the new menu group and scroll down to Items, hit Add and create the Service Charge items called Lunchbox (Dining Option) Service Charge and add in the amount you want to charge.
Step 5: Depending on your state's laws around service charges the charge will either be taxed or not taxed. Adjust this by clicking into the item and scrolling down to Taxes. Make your adjustment using the Tax Inclusion Option Tax Included and Tax Not Included settings. Include whether this item is taxed or not when you communicate this information to the Lunchbox Team.
Step 6: At the top right-hand corner of the screen hit Save.
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