SOCIAL VENTURING IN GUATEMALA:

RESTAURANTE CHICHOY – POST PANDEMIC

Claire Dallies, Universidad del Valle de Guatemala

Yolanda Sarason, Colorado State University (faculty supervisor)
Laura Robey, Colorado State University (student author)

Case Objectives and Use

The case can be used in a graduate or undergraduate class on entrepreneurship that is focusing on social
entrepreneurship. It is also appropriate for a section of a class that is focusing on doing business in
emerging economies. If there is a unit on social venturing, it may also be appropriate for classes on
management, social ventures, strategic management, marketing, or tourism.

After analyzing the case, students will be able to analyze the cultural, political, economic, and historical
context for a social venture in an emerging economy. They will also be able to describe how a social
venture is different from an economically- focused venture. Students will make strategic recommendations
that demonstrate their understanding of how a social enterprise can work to preserve their social mission while
managing through an external shock in their environment.

Case Synopsis
The case focuses on what Restaurantes Chichoy should do to successfully navigate the COVID-19
pandemic. Doña Amalia is the matriarch of a Mayan family that has owned and managed successful the
restaurants for several decades. The restaurants are known for their regional foods such as chicken soup,
chorizo, specialized sausage, and unique fruit pies. They are located on a popular highway from
Guatemala City to Lake Atitlan, a major tourist attraction known for its beauty and typical Mayan
communities, and they target national travelers and international tourists. Initially known as the ‘widows
café’, the enterprise was started during the Guatemalan civil war fifty years ago to provide income for
more than seventy-two widows of the war.
The case is set at the beginning of the pandemic in March 2020. The government announced that all
restaurants were to close, and everyone was to wear facemasks. It is not known how long the restaurants
will be closed, but even when they open, it will take time for the business to recover. Doña Amalia
contemplated what they should do that would give Restaurante Chichoy the greatest opportunity for
financial viability, while remaining consistent with their social mission of supporting the local community
and preserving Mayan traditions. The challenge is how to maintain the organization’s values and
traditions in deciding the steps toward temporary closure, and then how to reopen when conditions allow
it.

The authors developed the case for class discussion rather than to illustrate either effective or ineffective handling of
the situation. The case and teaching note was anonymously peer reviewed for presentation at the NACRA 2023
Conference, San Antonio, Texas, USA, October 5-7, 2023. © 2023. Contact person: Yolanda Sarason, Colorado
State University, 227 Rockwell Hall, 970-342-1325, yolanda.sarason@colostate.edu.

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 Social Venturing in Guatemala: Restaurante Chichoy - Post Pandemic
Doña Amalia, the matriarch of the family that has owned and managed the well-known restaurant
offering typical Guatemalan food in Tecpan, Chimaltenango, Guatemala (Central America), was
reflecting on the preparations for the 50-year celebration of an amazing growth from a small cafe that
supported surviving widows of the civil war to become two thriving restaurants. However, she just heard
the news that the first cases of COVID-19 are present in the country, and an order to close down all
businesses, schools, and universities had been given. Chichoy Restaurant had to close. For how long?
“Surely just a few days or maybe weeks”, thought Doña Amalia. “We must continue, the people need us.
Our employees and suppliers need their income, and we need the business. Now, how are we going to
make it during this time of closure, and how will we reopen?” She decided to call a meeting with her
family to discuss options.
Guatemala: Geographic and Historical Context
Guatemala is the northernmost country in Central America and borders Mexico, Belize, Honduras and El
Salvador. It is about the size of the state of Ohio in the US or Ireland in the British Isles. The country's
economy is based on tourism, agricultural production, agroindustry, and the textile industry.

Guatemala is the northernmost country in Central America with Mexico to the north and west, Belize and
the Atlantic Ocean to the east, Honduras and El Salvador to the southeast and the Pacific Ocean to the
south. It is famous for its volcanoes, lakes, textiles, Mayan ruins, and its temperate climate in the
highlands. It is a rich country in biodiversity, history, and culture.

Several pre-Hispanic cultures lived on this land, including the Ancient Maya. This great civilization dates
to 2000 B.C. and occupied northern Mesoamerica (mainly Guatemala, Southern Mexico, Belize,
Honduras, and El Salvador). The Maya Classic Period of greater development in all areas (art,
architecture, astronomy, math, writing, water engineering, politics, etc.) lasted from 250 A.D to 950 A.D.
This period ended with the “Maya Collapse” and an exodus of Maya people from Guatemala toward other
lands, including southern Mexico. Repopulated during the Maya Postclassic period (950- 1539 A.D.),
Guatemala was home to several Maya groups, each with their own land and culture. Some were at war
with each other.

After discovering the American Continent in 1792, the Spanish crown sent several missions in the
seventeenth century. Hernan Cortés conquered what we now call “Mexico”, followed by a land conquest

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toward the South. He commissioned Pedro de Alvarado to conquer southern lands in the name of Spain.
Alvarado entered Guatemala in 1524 and encountered different Maya groups: he fought some (like the
Quichés) and he allied with others (like the Kakchiqueles).

After the Spanish conquest, Guatemala entered the Colonial Period (1539-1821). During this time, the
country was dominated by Spain which imposed its culture and religion on the indigenous population. For
the following 250 years Guatemala´s story is complex and often misrepresented. On one side, the
magnificence of colonial architecture is elegantly portrayed. However, the dark history of slavery, forced
work, abuse, resource extraction, is seldom presented in local school history books.

In 1821, Guatemala and its neighboring countries became independent from Spain and was later
established as a democratic republic. Since its independence, the country has gone through times of peace
and times of struggle. The twentieth century was marked in Guatemala by the presence and influence of
the United States with strong political and economic ties. During the second half of the century, the Civil
War (1960-1996) divided the country. The context of this conflict was centered around a long-lasting
issue of unfair land distribution. Large areas of land were in the hands of big companies (including the
United Fruit Company) and a few rich families. Most poor farmers had small pieces of land. The conflict
was fueled by contrasting ideologies (capitalism vs socialism). An uprising group with communist ideas,
antagonist to the Central Government, raised people in arms to fight against the government in guerilla
warfare. During this struggle between uprising guerrilla men and the military, many communities were
affected. In many cases these communities had no idea what they were fighting about, and even if they
did, many were not interested in joining either group; yet, communities were raided by either group,
civilians were killed, and private property was often destroyed.

After more than thirty years of unresolved disagreement, over 150,000 dead or “disappeared”, the Peace
Treaty was signed in 1996. Although agreements were signed, the country was deeply wounded, the
people were divided. Communities were devastated or abandoned. A time of reconstruction and hope lies
ahead, with many uncertainties.

Guatemala Cultural Context

Currently, Guatemala is a pluricultural and multilingual country. Four groups inhabit the country: the
ladinos (almost half of the population), the indigenous Maya people (subdivided into 21 different ethnic
groups, the indigenous Xinca people and the Garifuna people). Although Spanish is the official language,
23 other languages are spoken in the country.

Over half of the Guatemalan population are Mayan. Their culture is linked to their spiritual world. The
self, the soul and the natural world must all live in harmonious balance. Separation from one’s village
constitutes the loss of identity and of one’s connection to one’s ancestors. Mayan concepts of the self
recognize three dimensions of existence: the waking self, the essential soul and an animal co-essence,
which is called a nawal, and represents a key node in linking the material and spiritual worlds. This means
that to be a person, involves all three dimensions of self1.

Guatemala is a country of contrasts. On one hand, it has a growing economy, strong business sector, large
urban areas, with high technological development, excellent private education, and excellent private
health services. On the other hand, more than sixty percent of the people live in poverty with ten percent
in extreme poverty, low education levels, limited access to good health services for the whole population.
The country's Human Development Index is one of the lowest for Latin America. Political instability,
corruption, social inequity, and high informal employment are constant challenges to this growing and

1
See Jurosz-Landa, G (2019) for a more nuanced understanding of Mayan culture.

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diverse society. Despite a rough history, and social injustice, Guatemala has one of the highest rates in
happiness worldwide. Guatemalans love to be hospitable and have a strong sense of family, and capacity
to withstand hardships.

With more than 17 million inhabitants, Guatemala is the most populous country in Central America, and
the country with the highest fertility rate in Latin America. Almost half of its population is under age 19,
making it the youngest population in Latin America as the charts below indicate.

Population Pyramids - World, U.S., Guatemala

Source: (www.populationpyramid.net)

There are many tools for evaluating a country’s culture. All involve generalizing about countries that are
diverse and complex. However, they provide a framework for comparing countries to each other.
Hofstede’s (1991) has been widely used, as it can quickly and easily compare and contrast cultural
differences that affect business and strategy across geographic regions. Accessing this website allows
entering different countries in order to make a comparison (https://www.hofstede-
insights.com/product/compare-countries/).

How Guatemala is depicted with this tool provides an understanding of the cultural context of
Restaurantes Chichoy. One of the categories is Power Distance. This dimension deals with the fact that all
individuals in societies are not equal - it expresses the attitude of the culture towards these inequalities
amongst us. Guatemala is very high on this scale signifying that leaders typically hold a considerable
amount of concentrated power (95/100).

Another dimension is the degree a culture is more Individualistic versus Collectivist. On this scale
Guatemala is very collectivist (6/100). Since the Guatemalans are a highly collectivistic people, belonging
to an in-group and aligning yourself with that group’s opinion is very important. Combined with the high
scores in Power Distance, this means that groups often have their strong identities. Communication is
indirect and the harmony of the group must be maintained. Open conflicts are avoided. The relationship
has a moral base, and this always has priority over task fulfillment.

A third dimension is the Masculine/Feminine score. Guatemala scores more Feminine on this dimension
(35/100). This means that the softer aspects of culture such as leveling with others, consensus, sympathy
for the underdog are valued and encouraged. Conflicts are avoided in private and work life and consensus
at the end is important. Leisure time is important for Guatemalans, it is the time when the whole family,
clan and friends come together to enjoy life.

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A fourth dimension is Uncertainty Avoidance. This has to do with should we try to control the future or
just let it happen? Guatemala has a very high score on Uncertainty Avoidance (98/100). This means that
as a nation they are seeking mechanisms to avoid ambiguity. To minimize anxiety, people make use of a
lot of rituals. Emotions are openly expressed. There are rules for everything, and social conservatism
enjoys quite a following.

History of Restaurante Chichoy

In 1970, Federico Cartens, a German immigrant, established a small café with his wife, Mercedes Hüitz,
in the region of Tecpan, Department of Chimaltenango, along the Panamerican Highway, the main road
from Guatemala City to lake Atitlan. They named it ‘Café Chichoy’ after the lagoon and village where
they lived. The area was surrounded by natural forests and had been inhabited by the Maya Kaqchikel
people for centuries. Part of the couple’s desire to establish the cafe was to provide employment for the
local people and establish a destination restaurant. The cafe highlighted local dishes such as hand-made
corn tortilla, smoked sausages, typical of Tecpan and fruit pies made from a unique family recipe
originating in Germany. This eclectic mix of indigenous and European foods portray the diversity of the
gastronomic sector of the region.
Federico and Mercedes had only one son, Fredy. He went to school in the local town. His best friend was
Pedro Cristal. They both helped Doña Mercedes at Café Chichoy in the afternoons after school and on
weekends. Pedro was very close to the Carsten family and was treated almost like a son.
Tragically, Don Federico Cartens and his son Freddy were murdered, and the cafe was burned down in
1981 during the Guatemalan civil war. Forced to leave, Doña Mercedes sought refuge in Guatemala City.
Two years later, when she returned to visit family, she was approached by a group of widows, who had
lost their families and livelihoods during the armed conflict. They asked her to reopen the café and hire
them so they could support their children. Doña Mercedes accepted and began working with Pedro Cristal
to reopen the café. The two organized seventy-two widows and assembled groups into shifts to ensure
that each of them had the opportunity to work and provide an income to their families. To gain attention
from drivers and passersby, the widows placed a rooftop sign that said: "help us, we are widows”
because it was difficult to see the cafe at a turn on the side of the road. From then on Café Chichoy
became known locally as “the widow’s café” (el café de las viudas). As the café grew in business, Doña
Mercedes realized she had a great partner with Pedro and his wife Amalia who supported her with the
business management and community relationship.
The first building of Café Chichoy (where Chichoy 1 is currently located)

Source: Provided with permission by the Cristal Family

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In 1986 Doña Mercedes became seriously ill and offered to sell Pedro the café. Pedro and Amalia
accepted this offer and made Restaurante Chichoy their family dream. Together they opened a second
establishment “Chichoy II” on km 78 of the Panamerican Highway. This was a much better location than
the first restaurant, with more space for a bigger building and larger parking lot. Trusted by her husband,
Doña Amalia took charge of the restaurant business as he decided to attend other projects. In 2004, Pedro
passed away, leaving her with four girls and a boy, ranging from 9 to 17 years old. Many people thought
she would sell or close the venue. On the contrary, she was determined to work harder, raise her kids, and
continue helping the families of her employees. She involved and trained each of her children to be
committed and serve wholeheartedly.

Chichoy Restaurant´s Since the 2000’s

The original café built by the Carten family, is located near Chichoy Lagoon, in a town called “Agua
Escondida”, 102 km (63 miles) from Guatemala City. The second one, called Chichoy II, was built by the
Cristal family in 1989 in Chirijuyú, Tecpán. It is 78 km (48 miles) from Guatemala City along the same
Pan American highway from Guatemala City to Mexico. The restaurants are located about 10 km (6
miles) apart.

Location of Chichoy Restaurants 1 and 2

(Along the Highland Inter-American Highway (CA-1) from Guatemala City to

Mexico)

When interviewed, Doña Amalia was asked about the secret of the success of Restaurante Chichoy. She
first acknowledged God, who has provided for her, her family and community. She then mentioned the
rich heritage of the community and the history of the restaurant. She described how the restaurant became
known for their pies that came from Don Federico. The restaurant has obtained fresh, high-quality
ingredients from local providers, providing employment for the family, and the local community.
Chichoy Restaurant also developed a delicious menu with regional foods, such as chicken soup, chorizo,

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and specialized sausages. They used to buy chorizo and sausage from others in the region; then they made
the products themselves. They opened a shop in each restaurant offering local arts and crafts, Guatemalan
chocolate, fruit preserves, pies, and cookies to go.

Restaurantes Chichoy 1 (km 102) and Chichoy 2 (Km 78) 2

Each member of the family was given responsibility for one area of providing the food service of the
restaurant. Doña Amalia remained as General Manager, and her children took on different job
responsibilities: Food and Beverages, Client Service, Events and Catering, Marketing, Human Resources
and Project Development. They pride themselves on being receptive to suggestions they get from their
customers for continuous improvement of their services. Since its inception, Restaurante Chichoy has had
a mission of giving opportunity to people without academic preparation, instructing them and teaching
them the values of the restaurant, culinary work, and customer service. The business has remained true to
the Cristal family values, which were centered around love, compassion, truth, honesty, hard-work, and
community.
Dealing with the Pandemic

After the first case of COVID-19 was confirmed in the country, the president of Guatemala, Alejandro
Giammatei announced a national emergency and called the entire population to stay at home. Everyone
was to wear a facemask at all times. Businesses and schools were asked to close operations temporarily
until new instructions were given.

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Photos from Restaurante Chichoy’s Facebook page

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Doña Amalia thought about the implication of the pending close and sighed. She closed her eyes and
recalled memories about Chichoy: the widows they helped decades ago, raising her children in the
restaurant with the support of their employees, the families and community that had supported them
during the years. She smiled quietly remembering how Chichoy had become their family dream. Then,
filled with determination to continue fighting for her children and grandchildren's future. Doña Amalia
was ready to face this new challenge.

She called her children to a family business meeting. Her eyes lit up with gratitude and hope as she saw
all five of her children sit at the meeting table. Upon the government's request to close business
operations, she asked them how they were going to manage this temporary closure, hoping it would be
just for a few days, maybe a couple weeks. As soon as the government allowed it to reopen operations,
how were they going to operate taking into consideration the operational adjustments required per
COVID-19 pandemic guidelines?

The Cristal family in 2020

Source: Photo used with permission from the Cristal family.

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