3f - Configure Service Charges (Toast)

minute read

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.

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)

  • Open amount - allows a variable service charge amount to be applied to the order


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.

Was this article helpful?
0 out of 0 found this helpful



Please sign in to leave a comment.