On January 8, 2026, Toast Inc. (NYSE: TOST), a leading digital platform catering to the hospitality industry, announced a suite of innovative updates designed specifically for retailers. The updates, which include enhancements to the Toast IQ AI assistant and several core platform improvements, will be showcased at the National Retail Federation (NRF) Show in New York City. This initiative aims to empower retailers with tools to enhance operational efficiency and growth.

1. Meeting Retailer Needs with AI-Powered Insights

Omri Traub, COO of Retail at Toast, emphasized the necessity for retailers to adopt new strategies to achieve efficiency and growth without complicating their operations. “Retailers need new ways to unlock greater efficiency and growth—without adding time spent or operational complexity,” Traub stated. The updates to Toast IQ aim to provide retailers with an AI-driven “right hand” partner that intuitively understands inventory flow and pricing dynamics, delivering actionable insights at critical moments.

Enhanced Toast IQ Capabilities

Recent research conducted by Toast revealed that over 83% of food and beverage retail operators intend to increase their reliance on AI tools in 2026. The latest enhancements to Toast IQ are designed to facilitate rapid decision-making through natural language processing. Retail operators can now access crucial information regarding inventory, pricing, and SKU management more efficiently.

Key features of the enhanced Toast IQ include:

Inventory Insights: Retailers can request information about stock levels with prompts like, “What needs restocking this week?” or “Which items aren’t moving?” This functionality allows operators to refine their replenishment strategies quickly.

Pricing Intelligence: The platform can suggest margin and pricing adjustments based on real-time data, empowering retailers to enhance profitability. Queries such as, “What prices should I set for my items to maintain a 30% margin?” can be answered instantly.

Real-Time Action Capability: Operators can execute immediate actions like marking items out of stock or creating new item descriptions through a simple chat interface, dramatically reducing task completion time.

Catalog Optimization: Toast IQ helps maintain organized product catalogs by identifying missing barcodes and outdated shelf labels, ensuring that retailers have a streamlined and searchable inventory system.

2. Additional Platform Enhancements for Retail Success

In response to the growing demand for all-in-one solutions, Toast has introduced several additional features to further optimize retail operations:

AI Invoice Scanning: This feature automates the entry of invoice data into Toast's receiving workflows, minimizing manual input and improving accuracy in inventory management.

Cloud-Enabled Scales and Labeling: New integrations with DIGIAmerica and Upshop 360 will allow retailers to make real-time pricing adjustments on weighted items, facilitating a more efficient and error-free process.

Advertising Solutions: Toast Advertising simplifies digital marketing for retailers, enabling them to launch ads across platforms like Google and Meta with minimal effort. The platform has reported an impressive return on ad spend of over 8X for beta users.

Toast Go® 3 Handheld with Barcode Scanning: This new handheld device allows staff to manage sales and inventory seamlessly while on the floor, eliminating the need for separate scanning equipment.

Real-World Impact: A Retailer's Perspective

Kirsten Maitland, co-owner of Rebel Cheese in New York City, shared her experience with Toast's platform, highlighting the advantages of its inventory management capabilities. “Even with all the complexities of selling cheese by the quarter-pound and accounting for samples, Toast makes the whole system run smoothly,” she noted. Maitland praised the platform for its ability to provide real-time visibility and help her maintain healthy profit margins.

3. Conclusion

As Toast continues to innovate and expand its capabilities for retailers, the company's commitment to enhancing operational efficiency and profitability is clear. The updates announced in the press release signal a significant shift in how retailers can leverage technology to streamline their operations and improve their bottom lines. Retailers and industry professionals are encouraged to visit the Toast booth (#6345) at the NRF Show to explore these new features in person.

Original press release