---
title: "How Restaurants Are Navigating the Penny Shortage and Cash Rounding Rules"
url: https://burnaze.com/article/1cb14a8c-8735-4ed5-b7b5-df1459b7c9e6
source: "1851 Franchise"
original_url: https://1851franchise.com/penny-shortage-restaurants-franchise-compliance-2731725
category: "Restaurants"
industry: "Restaurants"
published: 2026-03-19T22:17:07.000Z
modified: 2026-10-31T20:29:31.132Z
image: https://newimage.1851franchise.com/cdn-cgi/image/quality=85,format=webp,width=1280,height=720/story/featureImage/3e4af8a5bb3baad6721bcaac9c3b1ac8563.jpg
---

# How Restaurants Are Navigating the Penny Shortage and Cash Rounding Rules

**TL;DR:** Restaurants, especially quick-service and fast-casual operators, face challenges due to the penny shortage and cash rounding rules, with over a quarter of restaurant purchases paid in cash. Franchisors need to create clear policies to handle cash totals and ensure consistency across locations to avoid customer confusion and legal exposure.

*originally published in 1851 Franchise on 2026-03-19. [Read the original](https://1851franchise.com/penny-shortage-restaurants-franchise-compliance-2731725).*

## Story

Quick-service and fast-casual restaurant operators are facing new legal and operational pressure as the penny disappears from circulation, especially in franchise systems that still handle a large share of cash transactions. In a recent QSR Magazine article, Plave Koch PLC attorney Amanda Bannourah explained why restaurants should act now to create clear policies rather than wait for federal guidance that has yet to fully materialize.

The challenge is significant because cash remains an important form of payment in restaurant transactions. More than one in four restaurant purchases are paid in cash, which means quick-service restaurants, fast-casual brands, coffee shops and convenience-focused operators are more exposed than many other businesses. Without pennies in circulation, those operators must decide how to handle totals that no longer land on exact one-cent increments.

Many restaurants have started rounding cash totals to the nearest nickel. Still, that fix can create problems of its own. In places where businesses cannot charge cash customers more than card users, rounding up may raise compliance concerns. That can open the door to consumer protection complaints, deceptive practice claims and allegations that customers are being treated differently based on how they pay.

Rounding down reduces some of that customer-facing risk, but it comes with a cost. If a business consistently rounds down, it can lose up to 4 cents per transaction. For high-volume restaurant systems, these costs can add up quickly and put additional strain on margins.

For franchise systems, the issue is even more complicated because consistency matters across every location. If one franchisee handles rounding differently from another, the brand can end up with customer confusion, uneven execution and greater legal exposure. The challenge is heightened by the fact that state laws vary, particularly around anti-surcharging rules, unfair trade practices and other consumer protections. A policy that works in one market may not work in another.

That is why franchisors need to take a more structured approach now. Systemwide policies should be clearly defined, tailored where necessary to state-level requirements and communicated consistently to franchisees. Staff also need training on applying the policy correctly, and customers should be informed at the point of sale through clear disclosures.

The takeaway for QSR operators is straightforward. This is not just a small cash-handling adjustment. It is a compliance, training and brand-consistency issue that needs attention now. For franchise systems in particular, waiting too long could lead to avoidable operational problems and legal risks across multiple markets.

## Entities

- 1851 Franchise (publication)
- QSR (sector)
- QSR Magazine (publication)
- restaurant operations (topic)
- franchise systems (topic)
- consumer protection (topic)
- Plave Koch PLC (company)
- Amanda Bannourah (person)
- cash rounding rules (topic)
- penny shortage (topic)

---
Originally reported by 1851 Franchise (https://1851franchise.com/penny-shortage-restaurants-franchise-compliance-2731725). Summarized by Burnaze (https://burnaze.com/article/1cb14a8c-8735-4ed5-b7b5-df1459b7c9e6).