Background on the Situation
Recent violent protests in Mexico City’s Cuauhtémoc borough, which resulted in vandalized restaurants and bars, have created uncertainty for the hospitality sector. This comes at a time when businesses are still recovering from the negative impacts of the COVID-19 pandemic and preparing to welcome visitors for the 2026 FIFA World Cup.
Who is Jack Sourasky?
Jack Sourasky Olmos is the president of the Cámara Nacional de la Industria de Restaurantes y Alimentos Condimentados (Canirac) Ciudad de México, representing the interests of restaurant and food industry businesses in Mexico City.
Impact of the Protests
- Financial Losses: The vandalism causes direct financial losses for restaurant and bar owners due to damages to their properties, furniture, and equipment.
- Damaged City Image: The protests negatively affect Mexico City’s image, making it seem as though there is no legal framework or law enforcement to maintain order.
- Uncertainty for Investment: The lack of security during protests creates uncertainty for investors, making them hesitant to invest in the hospitality sector.
Response from Canirac and Other Business Groups
Sourasky emphasized that while businesses respect the right to peaceful protest, they condemn violence and destruction of commercial establishments. Nine business organizations in Mexico City condemned the July 4 demonstration, during which protesters caused damage to restaurants and bars in the Condesa, Roma, and Doctores neighborhoods.
Canirac called for better accompaniment from authorities during protests to prevent such incidents from escalating. Sourasky also mentioned that authorities in the United States are aware of these demonstrations.
Gentrification and Economic Concerns
The protests were partly motivated by concerns over gentrification, a global phenomenon that brings both economic benefits and drawbacks. Sourasky acknowledged the need to balance the interests of different sectors, such as commercial property owners and tenants facing rising rents.
He also pointed out that Mexico City has not experienced robust economic growth over the past seven years, and new urban development plans should allow for affordable vertical housing to prevent displacement.
Sourasky highlighted the issue of insufficient building approvals, attributing this to a supposed real estate cartel. He mentioned that Canirac has discussed their concerns with Mexico City government officials regarding both the destruction and lack of support from authorities.
The Hospitality Sector in Mexico City
Mexico City is home to 64,000 restaurants that directly employ 250,000 people. The recent protests and subsequent uncertainty have put additional strain on this vital sector.
