The stakes were high when Café Nautico lost electricity during its grand reopening here last month. Losing power is commonplace in Cuba, but this occasion was different: It was the first time restaurant employees would be paid based on the day’s earnings. The chef scrambled to keep the kitchen running by candlelight while the waitstaff assured the handful of customers that the lights would be back shortly.

Café Nautico used to be a state-run restaurant, which meant reliable – albeit low – wages for the staff of 12 whether or not anyone came to dine. But the Cuban government recently transferred management of the location to its employees, now called “associates,” to be run as a cooperative.

“We are making a lot of changes and we will try anything that can be useful,” says Jorge Cercera Montes, the president of the cooperative who got his start as a cook. He’s opening the restaurant for business earlier in the day, hosting parties and weddings, and renting out the back room for private events. “Our objective is to grow so that this place can provide more income for us as cooperative members.”...



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