Toast is Bringing AI Precision to Retail
TECHNOLOGY
The Toast IQ AI assistant enables retailers to move at the speed of conversation by instantly showing users what’s selling, what’s running low, and where margin opportunities lie in their business.
Toast has been the operating system for the restaurant world for several years. But as the lines between dining and retail continue to blur, think bottle shops, gourmet grocers, and convenience stores, the company is making a major play to own the retail shelf too.
Ahead of the 2026 National Retail Federation (NRF) Show, Toast announced a suite of AI-powered updates designed to give retailers something they’ve historically lacked: instant, conversational visibility into their margins and inventory.
Toast IQ: AI That Speaks Retail
The centerpiece of the update is the expansion of Toast IQ, an AI assistant that functions like a digital "right hand" for store owners. Rather than digging through complex spreadsheets, retailers can now interact with their data using natural language.
“Retailers need new ways to unlock greater efficiency and growth, without adding complexity,” said Omri Traub, COO of Retail at Toast.
With Toast IQ, operators can simply ask:
“What needs restocking this week?” The AI identifies items nearing depletion or those that haven't moved in 30+ days.
“Suggest pricing changes to increase sales by $1,000 next month.” Toast IQ provides margin-based intelligence to help protect profits in a fluctuating economy.
“Mark the peach salsa out of stock.” The AI can take real-time action directly from the chat interface, updating the POS in seconds.
Beyond the Chat: Full-Stack Efficiency
Toast isn't just focusing on software; it’s overhauling the physical workflows of the retail floor.
AI Invoice Scanning: To eliminate manual data entry, new AI features allow users to scan physical invoices, which then automatically populate inventory counts and costs.
Cloud-Enabled Scales: Through new partnerships with DIGI America and Upshop 360, Toast is automating weighted item labeling, a notoriously error-prone process.
Toast Go® 3 with Barcode Scanning: A new handheld device with cellular capabilities allows staff to check inventory and process sales from the backroom to the curb without losing connectivity.
The Advertising Edge
Perhaps the most significant addition for small businesses is Toast Advertising. Using AI-powered suggestions, retailers can launch digital ads on Google and Meta in minutes. Early beta users have reported a return on ad spend of over 8X, thanks to the system’s ability to link digital campaigns directly to in-store sales data.
Real-World Impact
For businesses like Rebel Cheese in New York City, these tools are already proving vital. Co-owner Kirsten Maitland notes that Toast’s ability to alert her when an item’s margin falls below 40% allows her to take immediate action, protecting her cash flow across hundreds of products.
As over 83% of food and beverage retailers plan to increase their use of AI in 2026, Toast is positioning itself as the foundational layer for the modern, efficient storefront.