McDonald’s is adapting its change policy at select locations due to a shortage of pennies in the United States. This decision follows the U.S. Treasury’s recent halt in penny production, which was announced by President Donald Trump earlier this year. Customers who pay with cash may find that their change is no longer exact, as transactions will be rounded to the nearest five cents.
In a statement, McDonald’s USA acknowledged the issue, noting, “Following the discontinuation of pennies nationwide, some McDonald’s locations may not be able to provide exact change.” The company emphasized that it is working on long-term solutions to ensure a fair experience for its customers. Furthermore, McDonald’s is coordinating with the federal government to address this growing concern.
The change policy has already been implemented at some franchise-operated locations, including one in Illinois. A sign in the drive-thru informs customers that their total will be rounded up or down due to the lack of available pennies. The sign concludes with a friendly reminder: “We appreciate your understanding!”
Cash-paying customers should note that those using the McDonald’s app or paying with credit or debit cards will not be affected by these changes. In some situations, cash customers may be encouraged to use cashless payment options if available.
Other retailers are also facing similar challenges with the penny shortage. Convenience store chains like Love’s and Kwik Trip have adopted rounding policies for cash transactions. Meanwhile, Sheetz even launched a promotion offering free sodas to customers who brought in 100 pennies, highlighting the urgency of the situation.
To tackle the shortage, Giant Eagle, a supermarket chain with over 400 locations in five states, is incentivizing customers to bring in their pennies. Beginning on November 1, 2023, customers can exchange at least $0.50 worth of pennies for a gift card valued at double that amount. Bill Artman, the president and CEO of Giant Eagle, stated, “At Giant Eagle, we saw a unique and fun opportunity to reward customers for joining our efforts.”
The decision to stop minting pennies was made in response to the high costs associated with producing them. The U.S. Treasury confirmed that the last order of copper-zinc planchets was placed in May, with the final pennies minted by June and distributed to banks by August. As a result, both retailers and banks are now grappling with a significant shortage of this coin.
Jeff Lenard from the National Association of Convenience Stores expressed frustration over the abrupt decision, saying, “We have been advocating abolition of the penny for 30 years. But this is not the way we wanted it to go.” The lack of clarity from the federal government has left many retailers uncertain about how to proceed.
Moreover, the penny shortage has created legal complications for some businesses. In various states and municipalities, laws prohibit rounding transactions to the nearest nickel or dime, which could lead to legal challenges for retailers that do not comply with these regulations. To sidestep potential lawsuits, many stores are opting to round down transactions. Although rounding down by two or three cents may seem minor, it can accumulate to significant amounts over numerous transactions.
As retailers navigate this unprecedented situation, Lenard emphasized the need for guidance from the federal government. “We don’t want the penny back,” he said. “We just want some sort of clarity on what to do, as this issue is only going to get worse.” The ongoing shortage is prompting a reevaluation of cash transactions and could lead to lasting changes in payment practices across the country.
