Competition is good, right? It is arguably what most drives the capitalist system. An open marketplace of goods and services, for the buyer to choose from. With competition, if you don’t like Product A, you’ve got Products B,C,D available, and may the best product win. When I lived near the beach and needed a ride, I could choose between the bus, the colectivo pirate taxis or the official, legally registered red cabs. Three ways of getting to my destination, three price levels, and Uber is probably available there now as well. That’s four options. That’s the benefit of competition.
What is good for the consumer is not always good for the seller. In the small area of Costa Rica where I spend almost all of my time, the competition sometimes looks more like survival of the fittest. This is especially true with restaurants and sodas. Right in my neighborhood, I see examples. A block away from me, some Colombians opened a combo small bakery and Chinese restaurant in a 2-story commercial building on the main street of the barrio.
Within a month someone opened a small bakery and Tico style soda right next door. Neither place looked to be getting a lot of business. Then after only a few months the Tico soda closed its doors. The Colombians endured for now. A few doors further down a storefront empanada place does a solid trade. It has been open in the same spot for several years. A while back somebody parked a bus in the lot right next door and converted it to a bar and grill. It has gone through various proprietors and is currently closed. Empanadas reign. I am only surprised that no one has turned the bus into an empanada stand.
Over the past few years, Indian restaurants, once nonexistent outside of San Jose, now proliferate like a garden of lotus in the midday sun. There Is competition, yes, but is it a case of the demand for Indian restaurants being so great, or copycats piggy backing onto the successful formula of the first to do it? Whatever the answer, may the best curry win.
On the mountain road outside of town, I have witnessed restaurant battles evolve over the years. This road– which leads to the Central Pacific beaches– features beautiful mountain and valley views, and numerous eateries have opened. Two have succeeded in staying open for well over a decade. One offers traditional tipico food and setting, the other is more modern and offers a wider food and drink selection. The traditional restaurant is operated by the owners of the property. The other is owned by a guy who was once shot six times in an assault and survived. (I know this because I was in the bed next to him when I was in the hospital ten years ago).
Other places have come and gone nearby. Recently a new place opened across the highway. Time will tell if it succeeds. A bit down the hill was my favorite place locally for a good steak. They had two locations, this one west of town, the other north of town, up a different mountain road. Both places did a good business and were open for several years.
The owner of the former property had what looked like a loft house attached to the restaurant. Then he decided to turn it into a restaurant and compete with his renters. The steak house responded a couple months later by closing the site, and consolidating their two locations into one– a larger building closer to town. The owner’s two unit building now sits unoccupied, after he succeeded in not only running off a good client, but also failing in his own attempt in the F&B industry.
So now the beach road has three restaurants in operation, down from a high of six. I do not know what the future holds for them, but I do know that I would not bet against the guy who took six bullets to the body and lived to talk about it.
