Nelson Valdés
When "paladares" first opened in Cuba several years ago, tourists rushed to them: these home restaurants were windows to Cuban families and the home cooking was generally more appealing than most of the state-run restaurants. Once the government got the message, it took serious measures, first to regulate the paladares so that they would conform to state health regulations and second to restrict the paladares with a web of regulations about who could work in them (only family members), how many people could be served at once (12), what food could be served (no lobster) and where that food could be purchased. Last, but far from least, the government started to improve and expand its own restaurant service so as to compete with the paladares. The state has been remarkably effective in the competitive game. But most visitors to Cuba still don’t understand how paladares operate, what the rules are, and what place they occupy in the Cuban economy. In this column Nelson Valdés, who teaches at Duke University, attempts to set the record straight. If, after reading this, you think it all sounds a bit surreal, well, that’s Cuba.
There are private paladares in Cuba. Some are legal and some are not. The illegal paladares provide a service and pay no direct taxes. There are some private paladares that do pay a tax to the state, yet they do not obtain the goods that they sell in the outlets that have been set up to sell to paladares.
For example, the typical Cuban family gets black beans through the libreta (ration book) or purchases them at the mercado campesino (farmers’ market). But the price of black beans at the latter is much lower than at the dollar stores.
Paladares are not supposed to purchase black beans or rice, or tomatoes or lettuce, etcetera, at the mercado campesino but are expected instead to buy their food at the "shopping," as the foreign currency stores are called.
The fact that paladares buy their inputs at the mercados and pay with pesos is an unintended indirect state subsidy to paladares. That is one reason for the high taxes paladares pay.
Paladares, even if they have a license, often buy their food at the peso markets, but they have to prove that their purchases originated from the dollar stores. So they end up buying proof-of-purchase tickets in the black market. (That is why when you go to a dollar store—depending on what you bought—someone might approach you and offer to buy from you the receipt which is your proof of purchase!)
The point is that you have three types of paladares in Cuba: a) legal ones that pay a tax and also purchase their inputs at dollar stores. I will estimate that they are the minority. They charge for their services in US dollars. b) the illegal paladares that do not have a license and also buy all their goods in pesos. They are also a small portion of the total paladares. They function in both currencies. Most of the clientele is Cuban and pays in pesos or in U.S. currency but the price is different from what the foreigner pays (i.e., lower). c) the legal paladares that buy their inputs in peso markets and then buy illegal proof-of-purchase papers. I estimate they are the majority.They operate in dollars.
Paladares confront a number of logistical problems if they stay in business. If there is a large clientele, then it becomes necessary to have products refrigerated in neighbors’ homes. They "rent" other refrigerators, in a sense. The same is true to keep illegal food products. In other words, if you have a "proof of purchase" that shows that you "bought" 20 pounds of rice at the "shopping," that is about the amount you keep at the paladar (in case a state inspector comes around). Your neighbors have the rest of the supplies. Of course, the neighbors are paid for their service.
The actual cost of running a successful paladar is greater than what is often imagined, even with the state-subsidized electricity, water, telephone, and rent (which are paid in pesos).
I should note that private paladares, at times, offer prices that are much higher than the equivalent service at state-run restaurants. Most foreigners assume that better food and service is provided by the paladares, so they tend not to go to state-run restaurants. The reality is more complicated. But, happily, the Cubanos know the score. Perhaps an enterprising scholar will come up with a list of those state-run enterprises one of these days.
source: cubaupdate.org
