National Restaurant Association Seeks Solutions to Operator Penny Problems

Washington, D.C.—The restaurant industry has a penny problem. A nationwide penny shortage means that operators can’t order pennies from their local banks, credit unions or Federal Reserve coin terminals. For an industry with more than $1 trillion in sales annually, and in which more than 1 in 4 transactions are paid in cash, when operators can’t provide exact change, it can cause chaos at the point of sale.

To ensure restaurant operators can navigate the current penny shortage, the National Restaurant Association is seeking two solutions:

• Urging the U.S. Treasury, the Federal Reserve, and the coin supply chain to work together to ensure the nationwide circulation of the penny.
• Federal legislation establishing nationwide rounding rules with a safe harbor for restaurant operators handling transactions when exact change is unavailable.

The Association recently sent a letter to the U.S. Treasury and the Federal Reserve, asking the regulators to ensure pennies continue to circulate so restaurant sales aren’t impacted.

“When operators can’t provide exact change, it creates friction at checkout, frustrating customers,” said Michelle Korsmo, President & CEO of the National Restaurant Association. “In a highly competitive industry, like restaurants, any change to the hospitality our customers expect could mean a lost return sale for an operator.”

Right now, many restaurant operators are rounding down when they don’t have the right change. However, prolonged rounding down could cost restaurant operators an estimated $13-$14 million per month. In an industry with low 3-5% pre-tax profit margins, rounding due to the penny shortage will start to cut into operator profitability.

In the letter, Korsmo asked leaders at the Fed and Treasury to help alleviate the penny shortage by re-opening the penny order and deposit system.

“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 also has requested that Treasury Secretary Scott Bessent issue temporary rounding guidance that would provide some degree of certainty and consistency for restaurant owners and their customers when exact change isn’t available.

Congress is working on legislation that would provide the long-term solutions, and the Association is coordinating closely with the bill sponsors to ensure it includes the industry’s priorities. If passed, this legislation would safeguard small business owners from potential liability, simplify transactions, and reflect the reality of a post-penny economy.