Exact change? Western Pa. businesses impacted by national coin shortage

Businesses are facing yet another hurdle from the coronavirus pandemic — a shortage of pennies, nickels, dimes and quarters.

The national coin shortage, which is impacting businesses across the nation, is the result of disruption in the supply chain when stay-at-home orders were put in place and businesses were forced to shutter to help curb the spread of the virus. Those actions halted the normal circulation patterns of the U.S. coin, the Federal Reserve said last month.

“What’s happened is that, with the partial closure of the economy, the flow of coins through the economy has gotten all — it’s kind of stopped,” said Fed chairman Jerome Powell.

That, and a decline in coin production in an effort to keep employees safe, has left businesses across the region facing more complications as they work to reopen while adhering to social distancing guidelines and an uncertain future in the pandemic.

Karen Cunningham, co-owner of Coin-Op Laundromat in Lower Burrell, was surprised this month when she started running low on quarters near the end of the week.

“Every Friday, we empty all the machines and take all the quarters to make the bank deposit. Last week both of my dollar bill changers were almost totally out by Thursday afternoon,” Cunningham said, noting that the two changers hold a total of $600 in quarters.

To account for the shortage, Cunningham is forced to empty her washer and dryer machines early and save the quarters rather than put a certain amount into the bank.

Something that could help, Cunningham said, is if people bring in their own quarters when they do laundry.

“It’s definitely a quarter shortage,” she said. “I’m hoping a lot of people bring them in with them and (they do not) just use mine. When everything’s running like it normally ran, about 10% of customers are bringing their own quarters.”

Other businesses across the region are reporting similar struggles.

Restaurant Depot in Lawrenceville is asking people to give exact change, a store employee said. Employees are encouraged to bring in their change to help make up for the shortage. The company compensates employees for what they contribute.

Several chain stores, including Dallas-based 7-Eleven and Cincinnati-based Kroger, are also feeling impacts from the shortage.

Kroger announced Monday that its grocery stores are stopping the use of coin change due to the shortage. Any change owed from a transaction will be applied to Kroger loyalty cards for a customer’s next purchase.

@kroger What gives you all the right to withhold people’s money? Can’t force everyone to pay with credit cards or have a #Kroger card. Where’s their money go? #thieves #StealingAintEasy https://t.co/3RXa7MUI0I

— Big House (@BBaum17) July 13, 2020

Across the country, 7-Eleven is asking customers to pay with exact change or by credit card to “reserve the amount of coins available at each register,” a spokesperson said.

Walmart also is encouraging customers to help, reported KXTV in Sacramento, California.

“Like most retailers, we’re experiencing the effects of the nationwide coin shortage,” Avani Dudhia, a Walmart spokesperson, told the television station. “We’re asking customers to pay with card or use correct change when possible if they need to pay with cash.”

Giant Eagle has not yet had to take similar measures, spokesman Dick Roberts said.

“Giant Eagle, like all businesses, is impacted by the temporary shortage of coins,” Roberts said. “While we are hopeful that this national issue will be short-lived, we are nevertheless actively working to make as much change as possible available to our guests.”

Hepler’s Hardware in New Stanton is also preparing for the possibility of a shortage, although they have not yet had issues, said cashier Brooke Steiner. The store’s owners are keeping an eye on coin supplies and could require credit card only if need be, Steiner said.

Still, other businesses in the area have not yet been impacted by the shortage.

Kendall Lapp, manager of Lapp Family Market, and Daniel Statler, owner of Statler’s Fun Center, both in Unity, said operations at their facilities have not been impacted by the coin shortage. Statler attributed that to the 5,000 quarters he keeps on hand.

“I’m certainly not expecting to (be impacted), but we don’t really buy many quarters,” Statler said. “I’ve had on hand that quantity for years and years and it’s been a long time since I’ve had to buy coins. I’m pretty confident we will be OK.”

To help alleviate issues created by the coin shortage, the Federal Reserve set up a task force that will submit guidance at the beginning of August.

The central banking system is also managing the allocation of existing reserve inventories, working with the U.S. Mint to minimize supply constraints and to maximize coin production and working with banks so they only order enough coins to meet customers’ short-term needs.

Pittsburgh-based PNC Bank is encouraging customers to make appointments to deposit wrapped coins, said spokeswoman Marcey Zwiebel.

“Although the Federal Reserve is confident that the coin inventory issues will resolve once the economy opens more broadly and the coin supply chain returns to normal circulation patterns, we recognize that these measures alone will not be enough to resolve near‐term issues,” the agency said.