your Bitcoins are likely converted to fiat currency first, which is then used to purchase the item, rather than making the purchase directly with Bitcoin.

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Yes, that happens to be true for PicknPay and petrol, but not for the coffeehouse owners. They accept BTC directly. It’s hard to onboard the big companies directly to Bitcoin, but this way it’s at least a start and people who earn or remit bitcoin can spend it without converting it to fiat first.

Yes, that's exactly what's happening in Vancouver. We now have a Bitcoin friendly Mayor who is good friends with Jeff Booth!

I read in one of the books on Bitcoin that some years backs several major companies started accepting Bitcoin, but only indirectly through fiat. However, they quietly phased it out within a couple of years due to declining interest and excessive volatility.