Restaurants Say Trump Move Could Cost Them $168M and Warn Consumers May Feel the Squeeze

A controversial policy change tied to the elimination of the penny is creating unexpected ripple effects across the restaurant industry, with operators warning it could cost them up to $168 million annually. Industry groups say the move (linked to halting penny production) has created new challenges for handling cash transactions, forcing restaurants into difficult choices that could ultimately impact customers. As businesses adapt to a “penny-less” system, both restaurants and diners may soon feel the financial consequences in subtle but noticeable ways.

What the Policy Change Actually Does

The issue stems from the U.S. moving away from producing new one-cent coins, which has led to a shortage of pennies in circulation. Without enough pennies to make exact change, restaurants and other businesses are increasingly forced to round transactions up or down to the nearest five cents. While this may seem minor, the change has created widespread operational challenges across the industry.

Why Restaurants Say It Could Cost $168 Million

According to the National Restaurant Association, rounding down cash transactions, even by just a few cents, can quickly add up across millions of purchases. The group estimates these small losses could total around $14 million per month, or roughly $168 million per year industry-wide. With about one in four restaurant transactions still paid in cash, those pennies lost per sale become a significant financial hit.

The ‘Three Bad Options’ Restaurants Face

Without a clear national standard for handling rounding, restaurants say they are stuck choosing between three imperfect options: absorb losses by rounding down, risk upsetting customers by rounding up, or encourage card payments that come with processing fees. Each option carries its own downsides, leaving businesses with no easy solution.

Why This Hits Restaurants Especially Hard

Restaurants operate on notoriously thin profit margins, often just a few cents per dollar in revenue. Even small financial changes can have an outsized impact on their bottom line. Industry leaders warn that consistent rounding losses could erode already tight margins, especially for small and independent businesses that lack financial flexibility.

Why Consumers May Soon Feel the Impact

To offset these losses, restaurants may begin adjusting menu prices, adding small fees, or reducing discounts and promotions. Over time, these changes could quietly increase the cost of dining out. Experts say that while customers may not immediately notice, the cumulative effect could make meals more expensive, particularly for those who frequently pay with cash.

Cash Users Could Be Affected the Most

Customers who rely on cash may experience the most noticeable impact, as rounding makes it harder to predict exact totals at checkout. For people on tight budgets, even small inconsistencies can create frustration and make it more difficult to manage spending. The lack of standardized rules means totals may vary from one restaurant to another.

Why Restaurants Are Asking Congress for Help

Industry groups are now urging Congress to step in and create a national standard for rounding transactions. They argue that consistent guidelines would reduce confusion for both businesses and customers while preventing uneven financial impacts across the industry. Without federal action, restaurants say uncertainty will continue to create operational and financial challenges.

A Small Coin With Big Consequences

What may seem like a minor policy change, the disappearance of the penny, has quickly turned into a larger economic issue. The situation highlights how even small adjustments to currency systems can ripple through industries, affecting pricing, operations, and customer experiences in unexpected ways.

Why This Could Change How You Pay for Meals

As restaurants adapt to the new reality, consumers may notice subtle shifts in how transactions are handled, from rounded totals to increased encouragement of card payments. While the full impact is still unfolding, the combination of operational challenges and rising costs suggests that both businesses and diners will need to adjust. In the end, a change as small as a missing penny could reshape everyday dining experiences more than many expected.