Investors gobbled up slices of the restaurant technology upstart Toast this week. They should look for more flavor before taking any more bites.
Toast, which went public earlier this week, provides software and hardware for restaurant services including payments, ordering, kitchen operations and staffing. About 48,000 restaurant locations were using Toast as of midyear, and its customers did about $38 billion of gross payment volume over the company’s platform in the 12 months to June. The company estimates that it is in 6% of overall U.S. restaurant locations.