By Mayela Armas

CARACAS (Reuters – Restaurateurs Melanie Angulo & Marwin Henrique have opened a shopfront in Caracas that serves specialty coffees and lattes. This is part of a rising wave of entrepreneurs who are encouraged by Venezuela’s increasing dollarization.

Cafés have begun to sprout up all over the city, with their owners hoping that the currency exchange will help revive an economy that has been ravaged by severe recession and hyperinflation for seven years.

Flat whites, cortados and espressos are now available in more than just the upmarket east Caracas area with its expensive restaurants, leafy streets and big homes. They can also be found in the busy streets of the center.

Angulo explained that while there are many cafés located in the eastern part of the city they do not serve the central area. We all need distractions.

While cafes exist in South America for many years, there aren’t as many or as famous in Caracas.

Venezuelans have, in reality, drank their coffee either at their home or in bakeries.

However, there are now about 20 cafés, ranging from small coffee shops to chains that sell their own brands, in Caracas’ eastern and central areas. Provinces like Valencia and Barquisimeto have also opened cafes.

Pietro Carbone (owner of a coffee shop and president) said that “coffee is very popular” in order to capitalize on the demand from consumers for better quality. Young people are pushing for better coffee.

After socialist President Nicolas Maduro made the decision to allow widespread currency transactions and relax prices at the beginning 2019

Maduro and Maduro have been able to give their government and businesses some breathing room while they struggle with the prolonged recession and U.S. Sanctions.

The number of shops that offer both imported and national coffees has increased as a result.

COFFEE PRODUCTION STILL DEAD

Venezuela had exported coffee until the middle ten years ago, but production dropped with the onset the economic crisis and price controls.

Although some coffee growers are able increase the cost per bag of beans due to loosening of their financial regulations, it has not had an effect on the production. Production is still around 500,000 quintals per. Producers say that this figure represents just half what it was 15-years ago.

Diolegdy Pez, Fedeagro director, said that less than 10% of coffee farmers produce gourmet coffee. This is the coffee used in new shops.

A coffee costs $1.50-$5 in these new shops. That’s a steep price for Venezuela, which was not possible before the dollarization. It is also prohibitively expensive in a country like Venezuela where the minimum wages average about $3 per month.

President of the National Chamber of Restaurants, Ivan Puerta said, “Those who once went to restaurants now prefer to go to cafes because they give them pleasure at a lower price.”

According to analysts and entrepreneurs, while smaller businesses may be able to function because they use dollars and euros to pay their bills, regulation is still not enough to address the wider economic downturn and weakening basic services.

Venezuelan businessmen must spend more money to buy water tanks and power plants in order to replace the decrepit services.

Enrique Perrella, who lost his pilot job during the coronavirus pandemic in 2001, opened an Italian cafe in Caracas’ eastern region in December.

His store has seen more customers since July but his investment has not been recouped. However, he feels it is an opportunity for Venezuelan entrepreneurs.

He stated, “We believe we should invest.”