In a move to revitalize the struggling food and beverage sector, the Cuban government has initiated a bidding process allowing private workers, cooperatives, and community projects to take over the management of state-owned bars in Rafael Freyre, Holguín. The Municipal Company of Commerce and Gastronomy in Rafael Freyre has announced the opportunity to lease four establishments: the Bar Nueva Onda (Juan Cantares), Bar Bajo el Cerro, Bar El Mango (Punto Fijo), and Bar Sao Redondo (Melones).
Prospective managers are required to submit their business proposals in sealed envelopes, detailing budgets, activity plans, potential renovations, and marketing strategies involving signage, recorded music, or artistic performances, as outlined in the announcement.
The deadline for submissions is set for August 30. Priority will be given to initiatives that maintain essential services, enhance quality conditions, and promote the region’s cultural traditions. Projects that incorporate renewable energy and social inclusion are also encouraged.
This decision is part of a broader "restructuring" of Cuba's retail sector, where an increasing number of state-run establishments are being transferred to private hands due to the government's inability to sustain them.
In 2023, similar bidding processes were seen with spaces at the Antonio Maceo International Airport in Santiago de Cuba and venues managed by EGREM transitioning to private management. More recently, in June 2025, the Enterprise for Heritage Management, in partnership with the Office of the Historian, called for leasing spaces along Havana's Malecón. Although touted as a "unique opportunity," the initiative sparked criticism on social media over concerns about structural safety, legal guarantees, and suspicions that the state is offloading the cost of urban decay onto entrepreneurs.
The situation in Rafael Freyre follows this trend, with once-vibrant bars now in disrepair and without consistent services, potentially being revived through private investment. However, as private workers caution, enthusiasm is tempered by legal uncertainties, high investment risks, and the ever-present threat that "the State might decide to evict you, causing you to lose your investment," as one user commented regarding the Malecón bidding process.
A Lifeline Amid State Economic Collapse
The government has acknowledged that the centralized model is unsustainable for domestic commerce. In 2022, Minister Betsy Díaz Velázquez admitted that the state-run network required profound transformation, noting that more autonomous units performed better.
Three years later, these bidding opportunities have become a lifeline amid the economic collapse of the state. While for some this represents a chance for entrepreneurship, others see it as a testament to a system's fragility, surviving by shifting its burdens onto citizens.
In Rafael Freyre, the future of bars like El Mango or Nueva Onda hinges on the community and entrepreneurs' ability to invest in venues that the state allowed to fall into disrepair. The question remains whether this approach will bring prosperity to the community or serve as another temporary patch amid the nation's structural crisis.
Key Questions About Cuba's State Bar Privatization
What is the purpose of the bidding process for state-owned bars in Cuba?
The purpose is to revitalize the struggling state-owned food and beverage sector by allowing private entrepreneurs to manage these establishments. This move aims to improve service quality, preserve cultural traditions, and stimulate economic activity.
What are the criteria for selecting proposals in the bidding process?
Proposals will be prioritized based on their ability to maintain essential services, enhance quality, promote cultural traditions, and incorporate renewable energy and social inclusion. Business plans must also include budgets, renovation plans, and marketing strategies.
What challenges do private entrepreneurs face in taking over state-owned bars?
Entrepreneurs face legal uncertainties, high investment risks, and the potential for the state to terminate their leases unexpectedly, leading to financial losses. These challenges create a cautious environment for potential investors.