On Thursday, Prime Minister Manuel Marrero Cruz revealed that Cuba will now allow the establishment of private chains of restaurants, cafes, burger joints, and stores throughout the nation. The government aims to entice international fast-food franchises to invest and expand their operations within the island on a national scale.
This announcement is part of a series of economic reforms sanctioned by the Extraordinary Plenary of the Central Committee of the Communist Party of Cuba, held on Wednesday at the Palace of the Revolution and concluded by Miguel Díaz-Canel.
"The creation of restaurant chains, networks of light gastronomy of recognized brands or new ones developed here, extending across the country, will be permitted. Any micro, small, or medium enterprise, or any foreign investment interested in forming a network of restaurants, cafes, or burger joints, will be allowed, aiming to enhance services for the population," stated Marrero.
The prime minister further disclosed the government's intention to "invite international light food franchises, of which there are many worldwide, to invest in Cuba and also expand their chains across the national territory."
Before this announcement, private Cuban businesses faced strict limitations on expanding beyond a single location and were not allowed to form national chains.
No official international fast-food franchises operated in Cuba; instead, private businesses mimicked global brands like Starbucks, Burger King, or KFC, adopting names such as "Starcafé" or "Burger Queen."
The reform package approved by the PCC is organized into six key areas: economic management system, municipal autonomy, business autonomy, agricultural recovery, foreign trade, and foreign investment.
Notable measures include the removal of mandatory intermediaries in imports and exports, the opening to direct foreign investment in the private sector—including micro, small, and medium enterprises—, the removal of key limits for these enterprises, and the possibility for Cubans living abroad to invest on equal terms with other economic players.
Raúl Castro participated via videoconference and signed the proposal document, emphasizing the importance of the proper and timely implementation of these changes.
Díaz-Canel acknowledged at the plenary's closing that merely explaining the crisis is no longer sufficient: "There are obstacles that do not originate from outside or from blockades. There is slow progress, bureaucracy, regulations that hinder those who want to produce, and decisions that we have delayed."
These announcements come amid an accumulated economic collapse: the CEPAL forecasts a 6.5% decline in Cuba's GDP by 2026, with a cumulative contraction of 10.3% over 2025-2026. Blackouts exceed 20 hours daily in some provinces, and emigration surpassed 250,000 people in 2024.
The public's response was immediately skeptical. Social media echoed sentiments like "Does anyone believe them?" and "Same dog with different collars," while economist Pedro Monreal described the reforms as "belated pragmatism," warning that Cuba has "missed the train of reforms seen in China and Vietnam."
The National Assembly has been summoned for an extraordinary session to ratify the PCC-approved reforms, a step Díaz-Canel himself described as urgent: "These are not new ideas; they are decisions the country discussed and approved years ago. The mistake was not in proposing them but in delaying them. That period of postponement must end."
Understanding Cuba's Economic Reforms and Their Impact
What are the main reforms announced by the Cuban government?
The main reforms include allowing private restaurant and store chains, inviting international fast-food franchises, removing import-export intermediaries, and encouraging direct foreign investment in the private sector.
How might these reforms affect Cuba's economy?
These reforms aim to stimulate the economy by increasing foreign investment, expanding services, and reducing bureaucracy, potentially leading to economic growth and improved living standards.
Why are Cubans skeptical about these changes?
Cubans are skeptical due to past delays and failures in implementing proposed reforms, leading to doubts about the government's ability to deliver on its promises effectively.