The U.S. penny shortage, accelerated by the end of penny production, is causing widespread retail disruptions, increased operational costs, and legal challenges due to rounding issues, especially during the busy holiday shopping season, with significant impacts on low-income and older Americans. Retailers are adapting by posting signs, retraining staff, and implementing tech fixes, but the lack of federal rounding rules risks legal and compliance problems.
Luckin Coffee, a Chinese-based brand that overtook Starbucks in China, is expanding in the US with new locations in New York City and other states, targeting young consumers with takeout and cashless options, amidst competition from other Chinese brands like Pop Mart and HEYTEA.
As cash transactions decline, small retailers are increasingly supporting initiatives to reduce credit card swipe fees, which can significantly impact their profit margins. These businesses are adapting to a more cashless economy by advocating for lower transaction costs associated with card payments.
Taco Bell's parent company, Yum Brands, is reportedly planning to transition to 100% digital transactions, eliminating cash payments. The change would involve more customers using the restaurant's website, mobile app, or kiosks to place orders. Yum Brands, which also owns Pizza Hut and KFC, revealed the plans during an earnings call, citing a significant increase in digital sales and the implementation of kiosks in all stores. No specific timeline for the transition was provided.
The first day of the New Orleans Jazz and Heritage Festival saw complaints about the newly implemented cashless payment system, with fest-goers reporting long lines for food and drinks due to slow checkout processes at vendors across the festival grounds. Festival organizers have yet to respond to the complaints.
