Longer lead time for penny phase-out welcomed by restaurateurs

TORONTO, July 31, 2012 /CNW/ - The Canadian Restaurant and Foodservices Association (CRFA) commends the federal government for responding to concerns about how 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 yesterday with an announcement that pennies will no longer be produced as of Feb. 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.

SOURCE: Canadian Restaurant and Foodservices Association

Prasanthi Vasanthakumar, Communications Specialist, 416-649-4254 or [email protected]