Cuban Government Approves New Retail and Restaurant Chains, But Sets Its Own Terms

This past Friday, the Cuban government unveiled a new regulatory framework in the Official Gazette aimed at restructuring the island's domestic commerce. This includes explicitly allowing the establishment of retail chains, restaurants, and food networks nationwide, as reported by EFE.

The central piece of this framework is Decree 167 "On Domestic Commerce," sanctioned by the Council of Ministers on August 7 and made public in the Official Gazette No. 69 on August 28.

Betsy Díaz Velázquez, the Minister of Domestic Commerce, introduced the decree.

Key Elements of Decree 167

This decree aims to "organize and modernize domestic commerce; enhance the commercial activities conducted by economic actors, and strengthen and encourage partnerships among them." It also seeks to promote fair competition and streamline supply chains.

Among its notable aspects, the decree permits the sale of goods and services in the local market "both in Cuban pesos and foreign currency," thereby formalizing a dual currency system that was already in practice.

A New Classification for Businesses

In conjunction with the decree, the Ministry of Domestic Commerce (MINCIN) issued Resolution 23/2026, which establishes a new classification system for commercial establishments based on quality and comfort: High Level, Medium Level, and neighborhood or local establishments.

The resolution further categorizes types of businesses by activity, including merchandise sales—markets, mini-markets, specialty stores, virtual shops, bakeries—gastronomic services, personal services, technical services, and lodging.

Technical Requirements and Mandatory Electronic Payments

Resolution 24/2026 outlines six general technical requirements applicable to all individuals and entities—both Cuban and foreign—engaging in commercial activities.

The first requirement mandates the "availability of electronic payment channels for the commercialization of goods and services and ensuring consumer access to these methods."

Businesses must also hold valid licenses and a visual identifier reflecting their type of economic actor.

Dollar-Based Fees for Commercial Procedures

The Ministry of Finance and Prices (MFP) also released Resolution 195/2026, signed by Minister Vladimir Regueiro Ale, which sets maximum fees in U.S. dollars for commercial licensing procedures: $70 for entry registration, $500 for registration or re-registration, $200 for temporary permits, $370 for registration updates, $450 for duplicates, and $260 for certifications.

The Gazette No. 69 further includes Decree Law 129/2026, repealing the previous regulation on merchandise confiscation, and Resolution 15/2026, which liberalizes wholesale commerce and reopens this market to private micro, small, and medium-sized enterprises (MSMEs) and non-agricultural cooperatives.

Part of 176 Economic Reforms

This regulatory package is part of the 176 economic and social reforms approved by the National Assembly in June 2026 and presented by Prime Minister Manuel Marrero Cruz.

The government claims that 134 out of these 176 reforms—76.1%—already have published legal backing. The package also includes the removal of the 100-worker cap for MSMEs, the opening to private banking, and the authorization of foreign food franchises.

Reforms Amidst a Deep Crisis

The announcement comes as Cuba faces an economic contraction of approximately 15% from 2020 to 2025, exacerbated since January 2026 by oil restrictions imposed by the Trump administration and new sanctions from Washington.

The official rhetoric on modernization contrasts with warnings from independent economists.

Cuban economist Pedro Monreal described the 176 measures as a "monster, perhaps well-intentioned," noting in August that the plan "only managed to prove" that its proponents "learned nothing," as the seemingly liberalizing shift faded in less than two months without structural guarantees to support it.