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Pesos, the P is for Pizza
Have you ever gone to Mexico on a vacation or business trip and came back with 200 pesos in your pocket not knowing what to do with them? Well most of us, if you’re like me, will save them because they look nice or because it brings memories of Mexico. We know that when those pesos cross the border they become useless. If you live in California, I forget the county, you can put your Mexican pesos to good use. Yes! you can spend the money that you brought with you.
Pizza Patron is the name of the place that actually takes pesos for any pizza that you might want to buy. Yes, Pizza patron made a deal with the US banks, which don’t exchange mexican pesos by the way, so that the business can take pesos as well as dollars. Now everybody who has leftover pesos from their trips can spend them there at the pizza place. Business has been going so well for them that they are about to open another chain there in California. If you think about it, it makes a lot of sense because people have all this money laying around, and can’t buy anything else but pizza.
Pizza Patron exchanges the pesos to 12 pesos per 1 dollar. The peso usually fluctuates between 10 and 11 pesos per dollar. The pizza business does not gain anything because their prices are always in dollar amounts so the amout of pesos doesn’t really matter. The only enterprice that has an advantage on the fluctuation are the banks because they win at least 15 cents over every peso exchanged with the Mexican banks. It works like interest. The banks are glad to exchange those pesos for dollars with Pizza patron because it is just like an investment.
Of coarse not all the business is done in pesos. Pizza patron still serves to the people with dollars. Pesos account for 15% of their total daily revenue and has an increasing trend. Wow, who ever though about spending Mexican pesos in the US? Seems to be a trend that could catch up to other businesses.