Coin shortage hits retailers, laundromats, tooth fairy

The national coin shortage has been an unusual side effect of the pandemic. Among its victims? Retailers, laundromats and even the tooth fairy.

The Federal Reserve announced in June that the supply system for coins had been severely disrupted by the pandemic. While there are still enough coins out there, they aren't circulating as freely because many businesses have been closed and consumers aren't out spending as usual.

The U.S. Mint and Treasury Secretary Steven Mnuchin have urged Americans to use coins or turn them in to banks to help for now. As the economy recovers and businesses reopen, the coin supply is expected to normalize.

In the meantime, people have have been forced to find workarounds.

Retailers large and small have urged shoppers to use cards or exact change whenever possible. Some won't provide change. Grocery giant Kroger Co. is still accepting cash, but offers customers the option to load their change onto loyalty cards to use on their next visit or to donate the balance to charity.

Convenience store chain WaWa offered customers a free beverage at some of its stores if people brought in $5 worth of coins, or a sandwich for $50 or more. Community State Bank, a regional bank chain in Wisconsin, even offered a $5 bonus for every $100 worth of coins that people brought in. They had to suspend it after a week due to overwhelming response.

As the shortage persists, it's become clear that there are still some conundrums that only coins can solve.

“It’s at the minimum an inconvenience...at worst it’s a business challenge," said Brian Wallace, CEO of the Coin Laundry Association, a trade group for laundromats. “We provide a basic health service. People need to do their laundry."

About 56% of laundromats that serve the public take quarters as the only...