KC shops round prices as pennies disappear
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Illustration: Sarah Grillo/Axios
Kansas City cafes and coffee shops are adjusting to life post-penny, rounding cash transactions to the nearest nickel after the U.S. Mint produced its final 1-cent coin last week.
Why it matters: The end of penny production means cash purchases will now be rounded up or down, a small shift that could slightly raise costs for cash users but save the government millions.
Context: The Treasury ended penny production after years of losses, based on a report from the Federal Reserve Bank of Richmond.
- Each coin costs 3.69 cents to make, resulting in $85 million in losses last year, according to the U.S. Mint.
- Ending production will save about $56 million a year, while the Federal Reserve report estimates consumers could collectively lose about $6 million annually through rounding.
Zoom in: At Thou Mayest's River Market location, a sign by the register explains how totals are now rounded to the nearest 5 cents.
- "It's been a smooth transition," operations manager Jackson Robbins tells Axios. "Most people don't mind losing a couple pennies," and they certainly don't mind when the shop rounds down.
State of play: Some KC shops tell Axios the change hasn't caused problems.
- Oddly Correct is redesigning its menu so totals naturally land on five-cent increments, says co-founder Mike Schroeder.
- Café Corazón founder Miel Castagna-Herrera says most customers pay by card and "haven't noticed any changes yet."
The bottom line: For most Kansas Citians, losing the penny won't cost much more than pocket change.