The National Restaurant Association is addressing challenges caused by a nationwide penny shortage, which has made it difficult for restaurant operators to obtain pennies from banks, credit unions, and Federal Reserve coin terminals. The issue affects an industry that generates more than $1 trillion in annual sales and relies on cash for over a quarter of its transactions. Without the ability to provide exact change, restaurants are experiencing disruptions at the point of sale.
To help restaurant operators manage the shortage, the Association is calling on the U.S. Treasury, the Federal Reserve, and organizations involved in coin distribution to work together to ensure that pennies continue to circulate across the country. Additionally, the group is advocating for federal legislation that would establish consistent rounding rules and offer legal protection for operators when exact change cannot be provided.
Michelle Korsmo, President & CEO of the National Restaurant Association, stated: "When operators can’t provide exact change, it creates friction at checkout, frustrating customers. In a highly competitive industry, like restaurants, any change to the hospitality our customers expect could mean a lost return sale for an operator."
Currently, many restaurants are rounding down transaction amounts due to insufficient change. According to estimates from the Association, this practice could result in monthly losses of $13-$14 million for restaurant operators. Given that typical pre-tax profit margins in the sector range from 3% to 5%, ongoing rounding could significantly impact profitability.
In correspondence with federal regulators, Korsmo urged reopening of systems allowing businesses to order and deposit pennies as a way to ease shortages while legislative solutions are developed. "This will help to recirculate the penny while the Association works with Congress to pass legislation that provides national rounding guidance for all businesses and a safe harbor for when restaurant and business owners need to round because exact change cannot be provided," said Korsmo.
The Association has also requested that Treasury Secretary Scott Bessent introduce temporary guidance on rounding practices until permanent legislation is enacted. Congress is currently working on measures aimed at providing long-term solutions; if passed, these would protect small business owners from liability issues related to rounding transactions and simplify payment processes as fewer pennies circulate.
