Palmares S.A., a company operating outside the hotel sector, has launched a public bidding process to lease the management of 13 cafés and retail outlets situated across various districts of Havana. This move highlights the ongoing collapse of state-run operations in the culinary and commercial sectors.
The announcement, made public this past Saturday by the state-run newspaper Tribuna de La Habana, includes venues located in Centro Habana, Playa, Marianao, Havana del Este, Cotorro, and Boyeros. The bidding is open to private economic players interested in running spaces that focus on dining, recreation, leisure, and retail trade.
Among the featured establishments are Venus Café (Belascoaín and San Rafael), Barbosa Café (Calle 23 and 21st Street, in Playa), Cotorro Café (Calle 101 and 12th Street), and the Naval sales point (Avenida Monumental and Asylum Road, in Havana del Este), along with other sites in the aforementioned districts.
Interested parties have until September 30th at 4:00 p.m. to submit their proposals.
This bidding initiative by Palmares is part of a growing trend seen throughout this year: the government, unable to keep its own venues operational, is shifting management responsibilities to the private sector while retaining property ownership.
In August, Cienfuegos transferred the management of 47 butcher shops to private hands, representing 68% of the total in the province, many of which had been shut down due to product shortages.
Yanser Toledo Pérez, the Municipal Director of Commerce in that city, candidly noted, "The stalls have been closed due to a lack of products, but their social purpose remains."
Also in August, the Caribe store chain in Villa Clara initiated a public tender to hand over the management of about 20 kiosks and commercial spaces across eight municipalities in the central province.
Recently, it was revealed that the Municipal Commerce Company of Santa Clara is seeking private operators to manage 16 bodegas, offering incentives such as up to two years without rent.
In addition, the Marriage Palace of Sancti Spíritus, which had been closed for roughly two years due to deterioration, was also leased out to the microenterprise Armonía for its rehabilitation and management through a bidding process.
Orelvis González Suárez, the Provincial Director of Gastronomy in Cienfuegos, acknowledged that tendering idle establishments has become "the main management tool" due to sector challenges, a statement that underscores the extent of the state model's failure.
Insights on Cuba's Shift to Private Management
Why is Palmares S.A. leasing its cafés and retail outlets?
Palmares S.A. is leasing its cafés and retail outlets due to the ongoing collapse of state management in the culinary and commercial sectors, seeking private operators to maintain operations.
What is the deadline for submitting bids for the Palmares properties?
The deadline for submitting bids for Palmares properties is September 30th at 4:00 p.m.
What are some of the venues included in Palmares' bidding process?
Venues included in the bidding process are Venus Café, Barbosa Café, Cotorro Café, and the Naval sales point, among others in various districts of Havana.
What trend does the Palmares bidding initiative reflect?
The Palmares bidding initiative reflects a broader trend of the Cuban government handing over management of its establishments to private entities as it struggles to keep them operational.