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Katherine Tangalakis-Lippert
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Follow Katherine Tangalakis-Lippert
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- The US is slowly bidding farewell to pennies as one-cent production is being phased out.
- Fast-food chains are making small changes to customers' final bills in the absence of pennies.
- Chains like McDonald's and Wendy's have started rounding cash payments up or down to the nearest nickel.
Fast-food chains are bidding farewell to the penny.
Retailers like McDonald's and Wendy's are making subtle pricing changes as the US phases out the one-cent coins, rounding the bill up or down if customers do not have exact change.
A McDonald's representative told Business Insider in a statement that locations in certain parts of the country are experiencing a shortage of pennies. Restaurants may round up or down to the nearest five cents if customers do not have exact change.
"This is an issue affecting all retailers across the country, and we will continue to work with the federal government to obtain guidance on this matter going forward," McDonald's statement added.
Wendy's told Business Insider that, until the government sets an industry standard, it has recommended that its franchisees round down cash transactions to the nearest nickel.
"Franchisees ultimately set their own prices, so rounding may vary by restaurant," Wendy's said.
Go To Foods, the parent company of Auntie Anne's, Cinnabon, and Jamba, echoed Wendy's guidance.
"At this time, when pennies aren't available, we're recommending that franchisees round cash transactions in the guest's favor," Go To Foods told Business Insider in a statement. "This ensures trust and consistency while minimizing disruption."
The three companies added that pricing for cashless transactions would not be affected.
President Donald Trump, citing the high cost of producing low-value coins, announced in February that the US Treasury would stop minting new pennies in 2026. Each $0.01 coin costs $0.03 to make, according to the US Mint's 2024 report, which also found that production costs had risen by over 20% that year.
A spokesperson for the Treasury previously told Business Insider that it would continue producing the coin until it runs out of blanks, so the currency will eventually fall out of circulation. Phasing out the coin will save the US Mint $56 million annually in materials costs, the spokesperson said.
Dylan Jeon, a senior director of government relations at the National Retail Federation, said in an October 29 statement that the government should provide clear guidance to retailers on how to deal with the lack of pennies.
"Without preemptive federal guidance, retailers and other cash-accepting businesses are exposed to legal risks simply for implementing necessary practices in response to the nationwide penny shortage," Jeon said.
The US isn't the only country to have phased out the penny. Canada and Sweden have both stopped production of their one-cent coins, and American politicians across the aisle have long advocated for the US to follow suit.
