The penny is facing a tough time. Recently, the U.S. Mint in Philadelphia produced its last penny after a decision by the Treasury Department to halt minting one-cent coins. This move is due to the increasing costs involved in making them.
So, what happens now when businesses run low on change? Let’s take a look at how some well-known chains are adjusting.
McDonald’s has announced that at certain locations, customers who pay with cash might not get exact change anymore. Instead, they will round the total to the nearest five cents. So, if your order is $10.22, you’ll pay $10.20. If it’s $10.23, it’ll be $10.25. Don’t worry—if you use a card, everything stays the same.
Auntie Anne’s, Cinnabon, Jamba, and Carvel are following suit. Their parent company, GoTo Foods, is advising franchisees to round cash transactions in favor of the customer.
Wendy’s is also rounding cash payments down to the nearest nickel for locations facing penny shortages. Like others, card payments remain untouched by these changes.
Kroger is taking a different approach. They’re asking customers to provide exact change when they can, while still accepting pennies.
Kwik Trip, a popular convenience store in the Midwest, is rounding cash transactions down, similar to McDonald’s and Wendy’s.
Interestingly, Giant Eagle, a supermarket chain based in Pennsylvania, recently ran a special event allowing customers to trade in pennies for gift cards worth double the coin’s value. This initiative not only helps customers but also enables the store to gather more pennies for future transactions.
Sheetz, another convenience chain, has been pushing for cashless payments. However, one of their stores recently ran a promotion offering a free drink to customers who brought in a dollar’s worth of pennies.
Broader Context and Insights
This shift raises important questions about cash use in our society. According to a 2022 survey by the Federal Reserve, the use of cash has dropped significantly, with only 19% of people favoring cash transactions over cards or other digital methods.
Experts suggest that this trend could signal a bigger change in how we handle money. With the ongoing rise of digital payments, organizations may continue to adapt to minimize handling coins and cash, making transactions faster and more efficient.
So, while the penny may be phasing out, it’s a part of a larger trend toward a cashless society. This could have long-term implications for how businesses operate and how consumers interact with money.
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United States Department of the Treasury, Money, United States Mint
