Penny shortage hits some Massachusetts restaurants hard when it comes to exact change

Businesses in Massachusetts are getting more creative to deal with the shortage of pennies.

Earlier this month, the U.S. Treasury stopped minting pennies because making the one-cent coins became too expensive.

Theo Christo has been stashing away pennies at his breakfast restaurant, Theo's Cozy Corner, in Boston's North End for months. He hopes to give his customers exact change for as long as possible.

"I prefer to be cash-only, so I don't have to deal with fees, credit card fees," he told WBZ-TV.

But that's getting harder. Businesses are struggling to make change.

"The restaurant industry is literally an industry of pennies," said Stephen Clark of the Massachusetts Restaurant Association.

Round up or round down?

He said businesses are now torn. Do they round up and risk frustrating customers or round down and lose money?

"Anytime you're talking about profit margin or menu price, it comes down to pennies and how you're actually making the difference between staying in business and going out of business. If you lose a lot of pennies, you're going to feel the financial strain of that," Clark said.

He added that Congress will need to decide how cash transactions should work without the penny, especially in states like Massachusetts, where businesses are required to accept cash payments.

"We need national guidelines to say, well, this is how we handle it," he said.

Several national chains are doing away with the penny. McDonald's told CBS News some of their restaurants now round cash payments to the nearest nickel.

That means a $1.22 order becomes $1.20, while a $1.23 order jumps to $1.25.

GoTo Foods, the parent company of popular brands like Cinnabon and Carvel, told CBS News it's "recommending that franchisees round cash transactions in the guest's favor."

"With everything being so expensive these days, it's really just growing more and more insignificant," Mo, a visitor from Seattle, told WBZ about his stance on the penny. He's noticed more cash-only spots in Boston than in other cities.

So would he pick up a penny on the sidewalk?

"I probably would for nostalgia's sake, but not for the sake of saving that penny," he said.