Shares of restaurant software provider Toast (NYSE:TOST) fell 5% in pre-open trading Wednesday after the company reversed its recent decision to charge a $0.99 order processing fee on the new version of its digital ordering suite amid pushback from clients.
"After extensive discussions with many of you, we have made the decision to remove the $0.99 order processing fee from the new version of our digital ordering suite by the end of this week," CEO Chris Comparato said in a letter to customers on Wednesday.
"While we had the best of intentions - to keep costs low for our customers - that is not how the change was perceived by some of you," he continued. "We made the wrong decision and following a careful review, including the additional feedback we received, the fee will be removed from our Toast digital ordering channels."
Some analysts had been positive about the new fee, raising numbers as a result. Those raised numbers will now have to be reversed.
Meanwhile, the company said the decision to reverse the fee will not have any material impact on its previously announced guidance for the second quarter ended June 30, 2023 or the fiscal year ending December 31, 2023.