Martin Vézina is a spokesperson for the Quebec Restaurant Association. He says Lightspeed’s business practices limits the choice of owners to decide what is best for them. (Dave St-Amant/CBC)
Although a restaurant could ditch Lightspeed and find a new POS system, it can be a hassle.
Ferguson estimates it would cost him about $2,000 to change companies and train his staff on how to use a new system, which would be extremely disruptive. He thinks Lightspeed is banking on that.
“We are working in such a high-pace industry and muscle memory is king,” said Ferguson. “Changing anything, even the organization of the plates, sometimes can screw people up.”
The $200-charge showed up in Ferguson’s September statement. Lightspeed suspended the fee this month and told Ferguson it would work with him to find a solution, but he has not heard back.
For his restaurant, he says $200 a month is equivalent to a cook’s salary for a day and over a year, $2,400 is close to what he pays in business taxes.
In a climate where many businesses are repaying pandemic loans and struggling with increased labour and food costs, Lightspeed’s decision hurts.
“It feels like a bit of [a] violation,” said Ferguson. “I am working with a supplier who feels it’s entitled to take my money. ”
I am working with a supplier who feels it’s entitled to take my money. – David Ferguson, chef and owner at Gus
Competition reform?
Unlike consumers, small businesses have little protection, said Jennifer Quaid, a competition law expert.
In this case, Quaid, a law professor at the University of Ottawa, says it appears Lightspeed may be trying to leverage its position as a larger player to strong-arm customers into using both its software and hardware.
Last month, the federal government announced it intends to update Canada’s competition laws.