In 2021, as a way of promoting dynamism in a faltering economy and boosting local production, Cuba allowed the establishment of small- and medium-sized enterprises. Since then, more than 9,000 of these enterprises, called “mipymes,” have been launched in diverse areas such as fisheries, construction, and garment production.
The fastest growing mipymes industry is small private grocery stores that typically operate in residential neighborhoods and are run out of garages or homes. Despite their modest appearance, the prices at such retail locations is anything but inexpensive. The goods they supply are typically out of reach for medical professionals and educators, who earn around 7,000 Cuban pesos each month, which equates to $30 US in the parallel market. As an example, a jar of mayonnaise imported from Spain runs around $4, while Czech powdered milk costs $8.
This largely limits the market for these small retail outposts to those who receive remittance from family abroad, as well as diplomates, other business owners, athletes, and those who work in the tourism industry. For most Cubans, ration books are still a necessity, with essentials such as beans, eggs, sugar, and rice available for just a few cents. State-owned stores, which charge local debit and international credit cards, and mipymes cover anything beyond that.
Even with such a limited consumer base, the reach of these retail shops is expanding. As reported by ABC News, in late 2023 a private store on the Havana outskirts opened and is 10 times larger than the usual mom-and-pop operation and earned the moniker “Cuban Costco.”
