Private Cafeterias Are Near the Brink in Cienfuegos, Cuba
The result of shortages, inflation and bureaucracy
Some entrepreneurs are experiencing “the most difficult times since they’ve been in business”.
By Julio Cesar Contreras (14ymedio)
HAVANA TIMES – With all kinds of problems, which he prefers to describe as “challenges for 2025,” Abelardo, 57, has decided that his cafeteria will remain open against all odds. He has no doubt that he is living “the most difficult times of the business,” which he opened in 2019 on Santa Cruz Street, in Cienfuegos.
Like other self-employed people in Cuba, the rise in prices and the product shortage are two realities that are threatening his business. The instability in his price list has been inevitable and the customers, he says, are not the only ones who suffer from the disarray of the national economy.
“I started with two employees who were in charge of preparing food and serving customers, while I guaranteed the supply of the cafeteria,” he explains. “I paid them 500 pesos a day, and it worked for me, even with the taxes to the Onat (Tax Administration Office) and hiring someone who kept the business’s accounts.”
The turning point – as for thousands of business owners on the Island – was the Coronavirus pandemic and the implementation of the “Ordering Task” reforms in January 2021. He had to fire one of the employees.
The cafeteria began its decline, fueled by the economic measures that the Government has implemented in recent years. According to the merchant himself, multiple factors have influenced the decline of his establishment, among which inflation, lack of merchandise and the low purchasing power of the population stand out.
“I try by all means to keep prices accessible for most people, but if the suppliers charges increase, I have no choice but to charge a little more myself. A cup of coffee that I used to sell for 20 pesos, I have had to increase it by an additional 30 pesos. If I don’t do it like this, I go straight to bankruptcy,” says Abelardo.
The situation is even more complicated for those owners who have to pay rent for the premises. It is increasingly common to find a small store or a cell phone workshop, where until some time ago there was a bar that offered light food products. Those who once opted to sell food are now evaluating the possibility of closing.
“My cafeteria’s location is privileged,” admits Rafael, who, like Abelardo, has decided to keep it open because it is across from the national bus terminal.
The flow of customers to his premises is “acceptable” during the day. Consumption is based mainly on products that do not exceed 150 pesos. “When you calculate the cost and the payments that must be made, the profit is so little that in some cases I have had to withdraw some offerings because they cause losses.”
Like Abelardo, Rafael also had to fire an employee: she even earned more money than he did.
“Many people are losing their jobs, because we business owners are being hindered from all sides. From government inspectors who fine us for anything, to the huge shortages that prevent us from moving forward. My wife and I are trying to continue in this area of gastronomy, but the fight is tough,” explains Rafael.
In addition to the economic problems, there is the sluggishness with which the Ministry of Labor manages licenses to practice self-employment, and this hinders hiring.
“It is inconceivable that the documentation to employ a person takes up to six months,” laments Eladio, who also runs a cafeteria. “I needed a saleswoman. Taking a risk, I put her to work while they processed her license. After five months, the papers were still not there, and she did not want to continue. I had to start the process again with someone else.”
In Cienfuegos, more and more establishments are closing their doors in the early afternoon. There is no money to pay the employees for the full day and, besides, it does not make sense if there are no customers. “I open when I can and how I can,” is Eladio’s mantra, “I don’t have partners or godfathers in the Government.”
Translated by Norma Whiting for Translating Cuba.