Dallas-based pizza chains accepts Mexican Pesos for payment

Ladewig

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Ladewig
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Pizza Patron ( http://www.pizzapatron.com/ ) will now accept Pesos, although at a rate which is not entirely competitive with banks and currency exchanges.

Reuters

DALLAS, Jan 8 (Reuters Life!) - Mexican pesos won't buy you much north of the border. But from Monday they'll buy you a pizza.

A Dallas-based pizza chain which caters to the Hispanic community is accepting the Mexican currency at all of its 59 U.S. stores starting on Monday, giving the greenback some unusual competition at the cash register.

"Unlike many other businesses for us it makes sense. Our stores are located in predominately Hispanic communities and so the majority of our customers are Hispanic," said Andrew Gamm, director of brand development for Pizza Patron.

"We know that a large number of them travel back and forth between the U.S. and Mexico and consequently have some pesos left over in their pocket. The pizza business is extremely competitive and we thought this was a way to position ourselves in relation to our competitors," he told Reuters.

-more-
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I wonder how long it will take for Bill O'Reilly to decry this act as just another step on the road to hell?
 
From a business point of view, this makes excellent sense:
The peso/dollar exchange rate being offered at Pizza Patron is 12 to 1 against the current rate of close to 11 to 1 to enable the franchise to cover the costs of converting the pesos at local banks.
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Buying pesos at the rate of twelve to the dollar, then selling them at the rate of eleven to the dollar gives you about a nine percent profit. Not bad.

And the "inconvenience" of the pizza company having to convert the pesos to dollars really isn't all that bad. Link.
 
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BPSCG said:
From a business point of view, this makes excellent sense:
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I expect the profits from this decision will exceed the possible losses from "patriots" who will boycott the business.
 
Ladewig said:
I wonder how long it will take for Bill O'Reilly to decry this act as just another step on the road to hell?
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What act?

As long as the private establishment wishes to incur the risks/benefits of dealing with such transactions, it's entirely their right to do so. They must decide if this is how they wish to do business and then deal with all their legal obligations (taxes, salaries, etc.) according to law -- and blame no one but themselves if this goes awry. But if this type of currency exchange by businesses becomes law then I'll be right up alongside Uncle Bill. The last time I was in Canada some establishments accepted US dollars -- some did not. As long as it's not a forced action to accept foreign currency, I see no problem.
 
Where to being... I don't understand the hubbub.

1. It's a business, they can take whatever currency they want. If they want to trade goats for pizza then good for them. Moreover, this will likely increase their business. As people will have pesos burning holes in their pockets and nothing to spend it, might as well buy a pizza. However, this increase will likely be offset by the would-be boycott.

2.This is an awesome PR stunt. It's all over the news here. They have free advertising out the wazoo. People who come here from Mexico likely don't have that many pesos, so repeat business is unlikely. This is not a long-term plan.

3. People are always complaining that Mexicans are sending dollars to Mexico, now they complain when the shoe's on the other foot. Consider it a re-appropriation of funds.
 
Oh for Christ's sake, you people!

I live in Detroit area, and there are restaraunts on both sides of the border that accept both US and Canadian cash.

Heck, we used to eat at an all-you-can-eat shrimp/fish place that gave you 73 cents on the dollar Canadian, and this was 30 years ago, and this was 30 miles inland.
 
bozothedeathmachine said:
Moreover, this will likely increase their business. ...

...However, this increase will likely be offset by the would-be boycott.
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I don't think the boycott fallout will be significant; they market primarily to the Hispanic community. I think it's a smart move all around.
 
Beerina said:
Oh for Christ's sake, you people!

I live in Detroit area, and there are restaraunts on both sides of the border that accept both US and Canadian cash.

Heck, we used to eat at an all-you-can-eat shrimp/fish place that gave you 73 cents on the dollar Canadian, and this was 30 years ago, and this was 30 miles inland.
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But all they where doing is catering to the frostbacks. This is about being a Proper American(tm)
 
Damned Canucks. If they weren't doing the jobs we upstanding Americans won't do, I'd vote for building that fence. 54' 40'', right?
 
Beerina said:
Oh for Christ's sake, you people!

I live in Detroit area, and there are restaraunts on both sides of the border that accept both US and Canadian cash.

Heck, we used to eat at an all-you-can-eat shrimp/fish place that gave you 73 cents on the dollar Canadian, and this was 30 years ago, and this was 30 miles inland.
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And how far is Dallas from Mexico? ;) Over two hundred miles, at closest point of approach (roughly Del Rio.) Anyhoo, BPSCG is right: this guy is making a business based decision that will probably pay off for him.

DR
 
Just thinking said:
What act?

As long as the private establishment wishes to incur the risks/benefits of dealing with such transactions, it's entirely their right to do so.
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So is WalMart, but that didn't stop Bill from criticising them for instructing their employees to wish customers Happy Holidays instead of Merry Christmas.

IOW, since when does the fact they are a private business doing what they feel is best for business have anything to do with whether OReilly will blame them for ruining American society?
 
Is it legal to take other than US currency in a transaction? I guess so but I think that might complicate things a bit. If you do take a goat as payment how is that accounted for, economy-wise? I mean, you have to pay taxes on the money you bring in when you sell something so that means you have to pay taxes if you bring in something other than money too.
 
Number Six said:
Is it legal to take other than US currency in a transaction? I guess so but I think that might complicate things a bit. If you do take a goat as payment how is that accounted for, economy-wise?
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You come up with a reasonable estimate of the value of the goat for tax purposes, and then you tell the tax man that when he comes for his share.

For a goat, that can be rather difficult, but it's not that tricky for pesos since the exchange rates are published. It's no harder than my trying to deduct business expenses incurred in overseas in foreign currency. ("Gee, that hotel room cost me four billion Elbonian eyecrud per night, which is (flip, flip) about 85p British or (flip, flip) two thousand US dollars.")
 
Number Six said:
Is it legal to take other than US currency in a transaction? I guess so but I think that might complicate things a bit. If you do take a goat as payment how is that accounted for, economy-wise? I mean, you have to pay taxes on the money you bring in when you sell something so that means you have to pay taxes if you bring in something other than money too.
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Damn you Amazon.uk. You should take dollars as you are an American(tm) company!
 
Garrette said:
Damned Canucks. If they weren't doing the jobs we upstanding Americans won't do, I'd vote for building that fence. 54' 40'', right?
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As long at is it a proper american hight, it can't be in any of those damn foreign metric lengths, the liter.
 
pgwenthold said:
So is WalMart, but that didn't stop Bill from criticising them for instructing their employees to wish customers Happy Holidays instead of Merry Christmas.

IOW, since when does the fact they are a private business doing what they feel is best for business have anything to do with whether OReilly will blame them for ruining American society?
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My sentiments exactly.

Just because this new policy is legal, moral, ethical, involves consenting adults, increases the GDP, and harms no one does not mean that some radio and television personalities will not cry like stuck pigs over the loss of American identity.
 
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