The National Restaurant Association (NRA) has escalated its efforts to address a nationwide penny shortage, warning that the lack of circulating coins is creating significant operational and financial challenges for the restaurant industry.
The NRA reported that the inability of operators to obtain pennies from banks, credit unions, and Federal Reserve terminals is causing disruption at the point of sale. Given that the industry generates over $1 trillion in annual sales and processes cash transactions for more than 25% of its business, the lack of exact change is proving costly.
The Association estimates that widespread rounding down of transactions, a common practice among operators facing the shortage, could cost the industry an estimated $13–$14 million per month. This financial pressure is particularly acute in an industry where pre-tax profit margins typically hover between 3% and 5%.
“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.”
Two-Pronged Approach to Relief
To navigate the issue, the NRA is pursuing two primary solutions with federal authorities:
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Increased Penny Circulation: The Association recently sent a letter to the U.S. Treasury and the Federal Reserve, requesting they collaborate with the coin supply chain to immediately re-open the penny order and deposit system. This measure is intended to quickly recirculate existing pennies and stabilize the immediate supply issue.
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Federal Rounding Legislation: The NRA is advocating for Congress to pass legislation that establishes nationwide rounding rules. This proposed law would also include a safe harbor provision, protecting restaurant operators from potential liability when exact change is unavailable.
In its communication, the Association also requested that Treasury Secretary Scott Bessent issue temporary rounding guidance. This guidance would offer a consistent framework for both restaurant owners and customers when exact change cannot be provided.
Korsmo stated that the legislative push aims to provide “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.”
The NRA is currently coordinating with congressional bill sponsors to ensure that the industry’s priorities are addressed in the proposed legislation. If enacted, the measure would simplify transactions and provide long-term solutions, reflecting the challenges of operating in a post-penny-shortage environment.