KEY POINTS:
DALLAS - Mexican pesos won't buy you much north of the US 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 US stores, 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 US 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.
Gamm said he was aware of businesses in border towns which accepted pesos but believed Pizza Patron was the first to offer such a service at outlets far from the Rio Grande.
The franchise operates in five states: Texas, Arizona, California, Nevada and Colorado.
The pizza peso ploy highlights the growing economic clout of the Hispanic community in America and the busy two-way traffic along the border.
But against the backdrop of rising anti-Hispanic tensions as America grapples with an estimated 10 to 12 million illegal immigrants, there are some who do not regard it as a harmless marketing gimmick.
"This is America, We speak English and our currency is the US dollar. I will no longer visit your restaurant due to your demonstrated inability to assimilate into the culture of this country," said one irate former customer in an email sent to Pizza Patron on Monday morning.
Gamm said most of the public response so far had been positive. The group plans a trial run for two months and if it is a success it will extend the peso policy.
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.
- REUTERS
