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The Kentucky Fried Chicken outlet on Avenida Revolución recently posted a sign on its door stating that it will no longer accept dollars in cash for any of its chicken dishes. (They'll accept dollars only if one is paying by credit card.)

The store's posting of the notice (replete with a logo featuring Colonel Sanders) indicates that the outlet has succumbed to the dollar restrictions now in effect in the border city. Guards posted at the door explained the situation to would-be KFC customers.

This is the first store of any kind where this reporter has seen such a notice since the restrictions on dollars in Tijuana began about a month ago; many businesses continue to accept U.S. currency.

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a2zresource Nov. 11, 2010 @ 3:51 p.m.

Found this story at the U-T: "Mexico limits dollar transactions to fight cartels"

http://www.signonsandiego.com/news/2010/jun/15/mexico-limits-dollar-transactions-to-fight-cartels/

According to article, "Businesses on the border or at tourist destinations would be limited to exchanging a maximum of $7,000 per month." I assume that KFC did much more than that in total monthly business...

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David Dodd Nov. 11, 2010 @ 4:36 p.m.

Many Mexican businesses do much more than $7,000.00 per month. KFC is a U.S. held franchise, I fully expect others to follow in their footsteps. Mexican businesses unattached to the U.S. will find ways around this new limit.

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a2zresource Nov. 12, 2010 @ 5:44 a.m.

Suspicions of well-stuffed money belts walking across the border heading north...

Ans what about Caliente's sports books? They can be a bank all on their own!

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David Dodd Nov. 12, 2010 @ 6:14 a.m.

You're correct on both counts ;)

It's silly that Mexico thinks it will make a difference limiting exchange at $7,000.00 per month, when it's perfectly legal for any one person to cross into the U.S. with $9,999.99 per day! Businesses that keep legitimate books (only the KFC's and McDonald's and Carl's Jrs.) are supposed to account for their sales in terms of currency type. For the rest it's hardly even a nuisance.

I call it the Christopher Columbus accounting method. Columbus kept two ship's logs: One phony one for the crew to access (which ironically turned out to be almost entirely accurate), and his own private one (which was incredibly incorrect). Most Mexican companies (small to mid-range) keep two sets of books: One for the government, and one for themselves.

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MK Nov. 12, 2010 @ 12:56 p.m.

SD Reader at it again. Why not do a story about KFC in the US wont accept pesos?? The reader has become too politcal..

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David Dodd Nov. 12, 2010 @ 2:47 p.m.

Not understanding how this is political.

Mexico passed a law where only $ 7,000.00 U.S. can be converted into pesos each month by any one business. Not for politics (they love the dollar here), but to stop the cartels from laundering money.

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a2zresource Nov. 12, 2010 @ 5:02 p.m.

Look right above the title. This is a "stringer" article... which means there isn't anything stopping you from doing the story from your point of view and getting paid for it (if acceptable for publication).

Or you could just start your own blog here on American economic imperialism in Mexico/ Mexican economic justice denied in America and see who stops by to read it.

Have fun... I do!

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David Dodd Nov. 12, 2010 @ 5:15 p.m.

I don't even see it as a POV story, it's pretty much straight-up what everyone has been looking for in these parts since the government put the law into effect. The only thing anyone living in Mexico would ever possibly need U.S. dollars for are purchases of privately owned vehicles and paying rent. Most Mexicans (even if they work in the U.S.) aren't affected by it unless they are in real estate or have business interests in the tourist areas.

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Visduh Nov. 12, 2010 @ 8:33 p.m.

I suspect this may be the KFC franchisee's way of putting some pressure on the government to end the restriction and get real. Like so many steps taken in the US to accomplish various ends, this sounds like it will be utterly ineffectual in stopping or even harassing the drug cartels. So Mexico can also engage in pointless gestures that look tough and uncompromising on the surface. Are all modern governments this ineffectual? No, only the ones that want to appear tough and at the same time kindly. So, here we go.

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David Dodd Nov. 12, 2010 @ 9:51 p.m.

Were that the case, then all KFC stores in Baja would be posting similar signs. To my knowledge, this has not occurred. The store in question appears to be located on Avenida Revolucion, so it figures that perhaps it would be commonplace for them to surpass $7,000 per month in sales using U.S. Dollars.

But I agree, millions of U.S. Dollars are likely smuggled into the U.S. and laundered there in various ways.

Here's another thing to consider: Funny accounting aside, Mexico simply doesn't have the manpower to audit all of these businesses, regardless. Many product deliveries are computerized (even to bars, imagine that) but the government still audits non-electronically. It could be that this particular KFC franchise owner knows that he'd be made example of if he was caught.

I have no idea where the nearest KFC is in my location, but I live many, many miles from any tourist area. Next time I'm out and about I'll have to check and see.

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Maggie Nov. 12, 2010 @ 10:39 p.m.

Well here's some news, we just bought a new refrig and stove at Home Depot in Rosarito, and they would not accept dollars. They did accept a debit bank card, but only after the dollar amount had been changed to pesos by our bank. Our bank BTW, added a 20 dollar charge to do that.

Our friends stopped to get visas at the border and they are also not accepting dollars, only pesos.

But if you live here, who uses dollars anyway? We don't.

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a2zresource Nov. 12, 2010 @ 11:14 p.m.

Thanks for the news. I had emailed somebody in Mexico about other businesses refusing dollars but have not heard anything back yet.

Personally, I don't visit Mexico anymore. I'm pretty sure nobody down there misses my business, and I have no use for pesos north of the border.

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David Dodd Nov. 13, 2010 @ 1:29 a.m.

Rent, in many parts of Tijuana, has been in dollars-only for decades (going back to when the peso was much less stable), and private purchases of cars and so on. That might be changing quick now, the exchange rate at the border is beginning to reflect the new law, it's dropping like crazy. The Oxxo near my house took U.S. currency this afternoon, as did Calimax yesterday.

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