Pizza for pesos marks decline of dollar

By Rachel Breitman

NEW YORK (Reuters) - When Pizza Patrón announced plans to accept Mexican pesos in its 59 Southwestern stores, the Dallas-based fast food chain was besieged by anti-illegal immigrant hate mail and even death threats.

But rather than fear for its life, the company used the Mexican currency to make a killing.

"From the new business perspective, it has been phenomenally successful," said Andrew Gamm, director of brand development for Pizza Patrón.

Once it started selling pizza for pesos in January, the company's same-store-sales rose by almost a third from the previous year. Pizza Patrón has now opened six new stores, with plans for 15 more throughout Nevada, Arizona, Colorado, California and Florida by the end of the year, and 40 more in 2008.

The Texas chain is hardly alone in trying to turn foreign currency into retail gold. Stores in U.S. cities ranging from Dallas to Waikiki have found that accepting international currencies can entice immigrant and tourist shoppers, happy to save a trip to the bank.

"It is about convenience. If somebody walks in and they only have 4 American dollars, but they have the equivalent of 10 dollars in other currency, a store'll help them out," said Ron Paul, president of Technomic Inc., a Chicago-based restaurant market research firm.

"I think the only negative stigma is that it sounds like it is supporting illegal immigration," he added.

Caught in the center of a nationwide debate about work permits, health care and legal amnesty for illegal immigrants, stores like Pizza Patrón are sometimes accused of breaking the law.