Toast Restaurant Technology Selected by Choice Hotels as Brand Standard for Two Upscale Brands
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Insights
The strategic partnership between Toast and Choice Hotels International is a significant development within the hospitality industry, with potential to enhance operational efficiencies and guest satisfaction. The integration of Toast's digital platform into Cambria Hotels and Radisson properties aligns with broader industry trends towards digital transformation. By adopting Toast's comprehensive suite of services, including POS systems, online ordering and kitchen display systems, these hotel brands aim to modernize the guest dining experience and streamline back-of-house operations.
From a market perspective, the implementation of Toast's technology could lead to increased food and beverage sales and improved labor management. The potential uplift in sales and operational efficiency may have a positive impact on Choice Hotels' bottom line. Moreover, the early adoption and positive feedback at Cambria locations could signal a successful rollout and a competitive edge in enhancing the overall guest experience.
Investors should monitor the adoption rate and guest feedback as these factors can be indicative of the initiative's success and its impact on the company's financial performance. Additionally, the expansion of Toast's services to other brands within Choice Hotels' portfolio could suggest further growth opportunities for Toast.
The announcement of Toast becoming a brand standard for Choice Hotels' upscale brands represents a long-term investment in technology infrastructure. Financially, this move is likely to incur significant upfront costs associated with the implementation of the Toast platform across multiple properties. However, the investment is expected to drive efficiencies in the long run, potentially translating into higher margins on food and beverage sales and reduced labor costs.
For investors, the key metrics to watch would be the return on investment (ROI) from this technology integration, which could be reflected in future financial statements through increased revenue per available room (RevPAR) for food and beverage and potentially lower operational costs. The timeline set for implementation by 2025 and 2026 allows for gradual capital expenditure spread, which could mitigate short-term financial strain.
The use of Toast's technology could also enhance Choice Hotels' loyalty program effectiveness by potentially increasing member engagement through a more seamless service experience. This could lead to higher repeat guest rates and a stronger loyalty program, which is a critical driver of revenue in the hospitality sector.
The integration of Toast's technology into the hotel dining experience represents a leap forward in hospitality tech. The use of handheld POS devices, mobile order and pay and kitchen display systems are examples of how technology can enhance service delivery. These tools can improve order accuracy, reduce wait times and provide real-time data analytics for better decision-making.
By integrating with property management systems, Toast enables a more connected and cohesive operational ecosystem. This can lead to a more personalized guest experience, as staff can access guest preferences and history to tailor services. Furthermore, direct third-party delivery integrations can open up new revenue streams and adapt to changing consumer behaviors towards food delivery services.
As the hospitality industry continues to recover from the impacts of the COVID-19 pandemic, technology-driven solutions like those provided by Toast can be a differentiator in attracting guests who value convenience and innovation. The impact of this technology on guest satisfaction and operational efficiency will be critical to observe as it rolls out across the Cambria and Radisson brands.
Toast technology streamlines operations for hotel owners and digitalizes guest experience to drive food and beverage sales through ease of use
From tableside to in-room dining, the Toast for Hotel Restaurants platform will integrate with Cambria’s and Radisson’s property management systems (PMS) to power modern dining experiences for guests. The implementation will digitalize the guest’s food and beverage experience on property while streamlining food and beverage operations for hotel staff. Enabling staff to process room charges directly from the convenient handheld point of sale (POS) devices, this collaboration will help empower operators to drive food and beverage sales, increase kitchen efficiency, and improve guest satisfaction.
“Cambria and Radisson hotels are increasingly seen as dining destinations in and of themselves, and this innovative collaboration with Toast will allow our guests and hotel staff to benefit from the digitalization of operations,” said Indy Adenaw, Senior Vice President and General Manager, Upscale at Choice Hotels. “We’ve already started rolling out Toast at several Cambria locations nationwide and are pleased to see the early impact it is making, including early adoption from guests, helping owners manage their labor model, and increasing lobby marketplace sales.”
In addition to standard food service POS and hotel PMS integration, Cambria and Radisson hotels will implement Toast Go® 2 handhelds for server and bartender use, Mobile Order & Pay at restaurant tables, Toast Online Ordering for in-room dining, Kiosks for lobby marketplaces, Kitchen Display Systems for back of house efficiency — including texting guests when orders are ready for pickup — and Toast’s direct Third-Party Delivery integrations. Cambria and Radisson hotels will also use Toast Payments.
Cambria and Radisson hotels, along with most of Choice Hotels’ portfolio of brands, are connected by the award-winning loyalty program Choice Privileges. Through the program, members can earn and redeem points at over 7,000 hotels across a diverse portfolio of brands with locations in 46 countries and territories. With the Choice Privileges Mastercard, cardholders can earn more points faster, including on everyday purchases including gas and groceries.
“Premier hotel brand operators like Choice Hotels recognize that a flexible service model is a critical success factor. From in-room dining to mobile order and pay to full-service restaurants to quick-service restaurants, Toast for Hotel Restaurants enables hospitality brands to deliver a more seamless guest experience, operate more efficiently, and increase speed of service across day parts and formats,” said Kelly Esten, Senior Vice President and General Manager, Enterprise at Toast. “We are delighted to be implementing Toast technology as a brand standard for Cambria and Radisson properties and to offer Toast to other Choice Hotels brands as a Qualified Vendor.”
Learn more about Toast for Hotel Restaurants.
About Toast
Toast [NYSE: TOST] is a cloud-based, all-in-one digital technology platform purpose-built for the entire restaurant community. Toast provides a single platform of software as a service (SaaS) products and financial technology solutions that give restaurants everything they need to run their business across point of sale, operations, digital ordering and delivery, marketing and loyalty, and team management. By serving as the restaurant operating system across dine-in, takeout, and delivery channels, Toast helps restaurants streamline operations, increase revenue, and deliver amazing guest experiences. For more information, visit www.toasttab.com.
Customer testimonials are self-reported and are not a guarantee that any other customer will see similar results. Toast does not warrant the accuracy or completeness of any information contained in customer testimonials. Individual results will vary.
Forward-looking Statements
This press release contains “forward-looking statements,” within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the context of the statement and generally arise when Toast or its management is discussing its beliefs, estimates or expectations. Such statements generally include the words “believes,” “plans,” “intends,” “targets,” “may,” “could,” “should,” “will,” “expects,” “estimates,” “suggests,” “anticipates,” “outlook,” “continues,” or similar expressions. These statements are not historical facts or guarantees of future performance, but represent the beliefs of Toast and its management at the time the statements were made regarding future events which are subject to certain risks, uncertainties and other factors, many of which are outside Toast’s control. Actual results and outcomes may differ materially from what is expressed or forecast in such forward-looking statements. Forward-looking statements include, without limitation, statements regarding the agreement between Toast and Choice Hotels International and its impact on Toast’s business and operations, and the planned and future implementation of the Toast platform at Choice Hotels International hotels.
The forward-looking statements contained in this release are also subject to other risks and uncertainties, including those more fully described in Toast’s filings with the Securities and Exchange Commission (“SEC”), including in the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations'' in Toast’s Annual Report on Form 10-K for the year ended December 31, 2022, Toast’s Quarterly Report on Form 10-Q for the three months ended September 30, 2023, and Toast’s subsequent SEC filings. Toast can give no assurance that the plans, intentions, expectations or strategies as reflected in or suggested by those forward-looking statements will be attained or achieved. The forward-looking statements in this release are based on information available to Toast as of the date hereof, and Toast disclaims any obligation to update any forward-looking statements, except as required by law. These forward-looking statements should not be relied upon as representing Toast’s views as of any date subsequent to the date of this press release.
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Source: Toast, Inc.
FAQ
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