(Havana – David South Consulting

Havana’s Restaurant Boom Augers in New Age of Entrepreneurs

By David South, Development Challenges, South-South Solutions

Cuba, the Caribbean island nation known for its 1959 revolution and its tourism industry, is undergoing a shift in its economic strategy. The country has had heavy state control of its industries and business activities since the country adopted the official policy of state socialism and joined the Communist economic sphere headed by the Soviet Union.

When the Soviet Union fell apart in 1991, Cuba was pitched into an economic crisis as it lost access to preferential trade subsidies. This period is known as the ‘Special Period’ (http://en.wikipedia.org/wiki/Special_Period) and was marked by a severe reduction in access to fuel as supplies and subsidies from the Soviet Union disappeared. Some of the iconic images of the time include people abandoning their cars and turning to bicycles to get around, or using make-shift truck-buses packed with workers. Exports collapsed and slashed the size of the economy by a third.

Fast-forward to today, and tourism is booming. A record 2.7 million tourists went to Cuba in 2011, earning the country US $2.3 billion. And it is catering to this tourism market that probably offers the best near-term opportunities. With wages still just 50 per cent of what they were in 1989 many are taking up this new opportunity to become entrepreneurs.

To become an entrepreneur, Cubans need to apply for a pink identification card with their name and photo and the words “Autorizacion Para Ejercer el Trabajo por Cuenta Propria.” This gives authority “to work for your own account.” With the card, a person can start a business, hire staff and pay them what they like.

Cuba’s economy has been through many phases since the revolution, swinging between loosening up the ability of people to establish private businesses – and pulling back, restricting private enterprise. But since 2008, there has been a significant shift to encouraging greater private enterprise, entrepreneurship and the ownership of private property – once banned – to stimulate the economy.

“This is the most important thing to happen in Cuba since the revolution in 1959,” Juan Triana, senior fellow at the Centre for the Study of the Cuban Economy at Havana University, told The Sunday Times Magazine.

One visible sign of this change is the flourishing of what is called locally ‘paladar’ (http://en.wikipedia.org/wiki/Paladar), or privately run restaurants.

Paladares are usually located in a person’s home and staffed by family members. Their customers are a mix of tourists, expatriates living in Cuba, and Cubans with a high enough income to be able to afford restaurant meals.

The cost of a meal in these restaurants can run from US $40 to US $60 for two people.

Stocking the kitchen is not easy. Cuba experiences food shortages and there is still rationing for many. Basics like eggs can be hard to find. As for exotic, imported ingredients, many chefs rely on visitors to stock their larders.

Cuba will have to re-build its food sector to make this a lasting improvement.

The agriculture sector has declined and, where Cuba once provided a third of the world’s sugar harvest, the country now has to import half of its food supply. Measures are in the works to change this, with smallholder farmers now able to own 165 acres of land and sell their produce to private customers and hotels.

One restaurant owner, Héctor Higuera Martinez, told The New York Times:“You dream up a recipe that you’d like to make but then you can’t find the ingredients.

“One day you go out to get salt and there’s no salt. And I mean no salt,Anywhere.”

Martinez trained with a well-known Cuban chef and did a stint in Paris before returning to Havana. He has turned a 19th-century mansion into the restaurant Le Chansonnier (http://www.cubajunky. com/havana/restaurant_le_chansonnier.html) and decorated the walls with the work of local artists.

Martinez sees the paladares as a turning point in changing Cuba’s reputation for having boring food. “I believe we can play an important role in revolutionizing Cuban cuisine.”

Cuba is making the difficult shift from having an economy where 80 per cent of activity is in the state sector, to a mixed model balanced between private and public ownership.

Havana’s historic district offers tourists renovated colonial architecture mixed with shops, restaurants and bars. As a tourist strolls from the renovated district, they quickly come across the rest of Havana, which has beautiful buildings from the colonial period, 1950s American-influenced architecture with its fading retro signage, and more utilitarian Soviet-era architecture.

While charming and home to most of the city’s residents, much of it is rundown and crowded and in need of investment and renovation.

But things are changing fast. Oyaki Curbelo and Cedric Fernando use spices brought in by visitors for Bollywood, their restaurant in the Nuevo Vedado area (http://cubantripadvisor.com/destinations/havana-cityoutskirts/bollywood-paladar/). It has a small menu of Indian and Sri Lankan dishes, including shrimp curry with ginger and tamarind. The restaurant sources its curry leaves from a tree located in the Sri Lankan Embassy.

Another restaurant, Atelier (http://www.cubaabsolutely.com/articles/travel/article_travel.php?landa=70),located in a mansion in the Vedado neighbourhood, serves European Continental food and has a roof terrace letting diners enjoy the a view of the Havana skyline.

The restaurant Doña Eutimia (https://www.facebook.com/paladardona.eutimia) serves up Cuban favourites off the Cathedral Square. Specialties include a dish made of shredded beef with garlic, tomato, oregano and bay leaves.

At Vistamer (http://www.stay.com/havana/restaurant/4249/paladar-vistamar/),diners can enjoy garlic-laden lobster tails and lemon meringue pie. At the paladar Café Laurent (http://www.cubaabsolutely.com/articles/travel/article_travel.php?landa=71), the menu includes meatballs with sesame seeds and mustard in red-wine and tarragon sauce, according to The New York Times.

Habana Chef in the Vedado district (http://cubantripadvisor.com/destinations/havana-city-outskirts/habana-chefpaladar/) was started by Joel Begue and chef Ivan Rodriguez. Begue gained his experience in the state restaurant sector and took the opportunity to get a licence when the government offered them in 2011. He borrowed US $25,000 to start the restaurant and has been able to pay back half so far. His current success is prompting him to look into opening a second restaurant in the capital.

An enthusiastic Andrew Macdonald, who is looking for investment opportunities for a half a billion dollar fund held by the Escencia Anglo-Cuban firm, told The Sunday Times magazine, “Cuba is the top emerging tourism market in the Caribbean by a mile, and it’s in the top five emerging markets globally.”

Published: May 2012

Resources

1) Advice on starting a restaurant and links to additional resources. Website: runarestaurant.co.uk

2) How to start a restaurant: From Entrepreneur magazine, a guide to the planning required to start a successful restaurant. Website: http://www.entrepreneur.com/article/73384

3) AlaMesa: A directory of restaurants in Cuba. Website: alamesacuba.com

4) Southern Innovator: Youth and Entrepreneurship Issue: The new global magazine is launching its second issue and is packed with innovative entrepreneurs and youth using business to tackle poverty. Website: http://www.scribd.com/doc/86451057/Southern-Innovator-Magazine-Issue-2

https://davidsouthconsulting.org/2022/11/10/brazilian-restaurant-serves-amazonian-treats/

https://davidsouthconsulting.org/2022/11/19/cooking-up-a-recipe-to-end-poverty/

https://davidsouthconsulting.org/2022/10/24/latin-american-food-renaissance-excites-diners/

https://davidsouthconsulting.org/2022/11/11/woman-restaurant-entrepreneur-embraces-brand-driven-growth/

Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP’s South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South’s innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator.

https://davidsouthconsulting.org/2021/03/05/southern-innovator-issue-3/

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Brazil Preserves Family Farms and Keeps Food Local and Healthy

By David South, Development Challenges, South-South Solutions

(Havana, Cuba), November 2008

SOUTH-SOUTH CASE STUDY

Today’s global food crisis sparked by a toxic mix of events – high oil and commodity prices, food scarcity, growing populations, and environmental catastrophes – has woken many up to the urgent need to secure food supplies and help those who grow the world’s food. More and more countries are turning to local and small farms – or family farms – to offer food security when times get rough.

Right now there are more than 862 million undernourished people around the world (FAO), and U.N. Secretary- General Ban Ki-moon has called for food production to increase 50 percent by 2030 just to meet rising demand. Three-quarters of the world’s poorest people living on less than US $1 a day live in rural areas in developing countries and 85 percent of the world’s farms are of less than two hectares in size.

There has long been a tension between those who believe in very large farms, agribusiness and mono-crops (http://en.wikipedia.org/wiki/Mono-cropping), and those who believe in having a large number of smaller farms with a wide variety of crops and animals.

Family farming has been seen as doomed for a long time. In the 19th century, figures like philosopher Karl Marx believed they would be split into capitalist farms and proletarian labour. Most modern economists regard family farming as an archaic way to grow food, destined to give way to agribusiness. Most family farms refute this, saying family farmers have been able to operate with success in both developed and developing countries.

And small farms have endured. The livelihoods of more than 2 billion people depend on the 450 million smallholder farms across the world. With their families, they account for a third of the world’s population.

Family farms are critical to weathering economic crises and ensuring a steady and secure food supply. The International Fund for Agricultural Development (IFAD) (www.ifad.org) called earlier this year for small family farms to be put at the heart of the global response to high food prices and to improve food security. And in Brazil, this call is being answered by a bold initiative to create what they call a “social technology”, combining a house building programme with diverse family farms.

Brazil is currently buying up unused land and distributing it to people making land claims, including Brazil’s Landless Workers Movement (http://www.mstbrazil.org). When they receive land, family farmers often find there is no house on the land, or just a very basic dwelling.

This is where the Brazilian farmer’s cooperative Cooperhaf: Cooperativa de Habitacao dos Agricultores Familiares (http://www.cooperhaf.org.br/), steps in. It has put together what it calls a “social technology” combining housing and farm diversification to support family farmers.

“We see the house as the core issue,” said Adriana Paola Paredes Penafiel, a projects adviser with the Cooperhaf. “The farmers can improve their productivity but the starting point is the house.

“Family farming is very important for the country – 70 percent of food for Brazilians comes from family farming,” said Penafiel. “The government wants to keep people in rural areas.”

Started in 2001 by a federation of farmers unions, the Cooperhaf works in 14 Brazilian states with family farmers.

“Family farmers had to organize themselves to deal with housing,” said Penafiel. “The cooperative was formed to mediate between farmers and the government. The farmers have a right in the law to a house.

“We promote diversification to make farmers less vulnerable: if they lose a crop in macro farming, they lose everything. We encourage diversification and self-consumption to guarantee the family has food everyday. We help to set up a garden.”

The concept is simple: a good quality home acts as an anchor to the family farm, making them more productive as farmers. The farmers receive up to 6,000 reals (US $2,290) for a house, and can choose designs from a portfolio of options from the Cooperhaf.

As in other countries, the Cooperhaf and other coops encourage markets and certification programmes to promote family farmed food and raise awareness. Penafiel says promoting the fact that the food is family farmed is critical: to the consumer it is healthier, fresher and contains fewer chemicals than imported produce.

“We sell a livelihood not a product. If you get to know the product, you are more conscious of what you eat.”

In the US, there are almost 2 million farms, 80 percent of which are small farms, a large percentage family-owned. More and more of these farmers are now selling their products directly to the public.

In the UK, family farms are on course to provide 10 percent of the country’s food and drink and be worth £15 billion a year.

“If we forget them, we actually may get a situation where, while meeting the world’s immediate supply targets, we wind up with an even greater imbalance in the global supply system and greater food insecurity,” said IFAD President Lennart Båge.

“Most agri business is for export,” said Penafiel. “If we don’t have food in the country, food for poor communities would not be available. This enables farmers to be more autonomous, not having to buy fertilizers and equipment and take on too much debt. That approach is not sustainable as we saw with the so-called Green Revolution.”

Published: December 2008