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Let’s Rip off those Americans
It’s Good for Business — Right?

You are restaurateurs…not bankers…so why in the world would you ever give American’s the proper exchange on their dollar?

When American’s come to Canada they should be responsible enough to convert their money into Canadian dollars prior to using it or else they should understand that you, as restaurateurs, need to charge a premium...because…you are not bankers and you have to send someone to the bank with their American money and get the bank to do the exchange and...it takes up valuable time and you should be compensated for it...Right?

Wrong!

One of the most amazing things I see in restaurants is that the vast majority are only providing 25% to 30% exchange on the US dollar although the bank rate is (depending on the day this is published or read) about 50%. It amazes me, that we as an industry so intent on providing quality and value, are also so intent on ‘ripping off’ our American guest using the logic noted above or the notion that ‘everything is so cheap here, why give them more’.
The truth is that good restaurateurs provide quality and value and in doing so, have priced their menus accordingly. By offering a 30% exchange rate, you are really charging the American customer 20% more than you should for the product you are selling them.

This type of poor exchange is indicative of the fact that we are willing to cheat our guests; and that is wrong! The truth is if you once thought that $10 Canadian was a fair price for a specific menu item, then it still is, and there is no reason to sell it to an American for $12.

As restaurateurs you go to the bank daily anyway to cash receipts and to get change, so converting a few American dollars is not really a big issue and will likely only take an additional minute or two...not a big price for providing service to a customer. And if the American was good enough to pay cash then you are not paying 4% to Amex, and that too is to your benefit.

So you really should treat your American guests fairly…because they aren’t stupid…they must recognize that they are getting taken advantage of … and they may not come back to your restaurant again.

By the way….Have you noticed with your low exchange rate that no one is using American dollars. Its not because you scared them away or forced them to use their Amex and pay the exchange later. What is really going on … without you noticing…is that your service staff are taking the American dollars at your 30% exchange rate and then selling it to the bank. It is, in fact, your service staff who are getting the 20% benefit…not you.

So … what is really going on in your restaurant is that your service staff is profiting at your customer’s expense while your customers are leaving with the impression that you are cheating them…Well that’s always comforting.

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