Longer Lead-Time for Penny Phase-Out Welcomed by Restaurateurs
(TORONTO) The Canadian Restaurant and Foodservices Association (CRFA) has expressed relief to their concerns about the federal government’s plan to “turn off the tap” when it comes to the penny. CRFA called for a longer lead time and a clear transition date, which the government put in place on July 31 with an announcement that pennies will no longer be produced as of February 4, 2013.
“With 18 million customer transactions in the restaurant industry every day, the decision to remove the penny has a significant impact on our members,” says CRFA President and CEO Garth Whyte. “We’re very pleased the government responded to our concerns. We’re also calling for a robust consumer education campaign from the government so that our customers understand fully what is being planned and how the rounding process will work.”
A CRFA survey of restaurant owners found that 58% are concerned that eliminating the penny and rounding transactions will have a negative impact on their business. A majority of respondents expect to incur extra costs for staff training (56%); reprogramming point-of-sale equipment (54%); and customer education (50%).
CRFA is one of Canada’s largest business associations, with more than 30,000 members representing restaurants, bars, caterers, institutions and other foodservice providers. Canada’s restaurant industry employs more than one million people at more than 80,000 locations across the country.
A. Paul Mitchell
A. Paul Mitchell possesses a wealth of communications experience from his 19 years within the marketing and hospitality industries, most recently with Richard Ivey School of Business at Western University. He led the public relations and media relations program for a national research charity and has enjoyed success as an entrepreneur and newspaper columnist. Paul is a drink industry authority, newspaper columnist and currently involved in publishing. A member of IABC Canada, he holds a Bachelor of Arts degree from The University of Western Ontario and is a marketing graduate from Centennial College.
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