More than 20,000 Kiosks closed in Argentina over the past year (50 per day)

[Rich One]

Boy if this isn't a barometer for how bad things are in Argentina right now. Usually these kiosks are recession proof. But they are closing down all over.


More than 20,000 kiosks closed in Argentina over the past year, amid skyrocketing prices and a collapse in consumption.

In the sector, they estimate that around 50 businesses went out of business every day and are demanding action against the expansion of chains.

“We’re on a knife’s edge: if we raise prices, we don’t sell; and if we hold prices steady, we go bankrupt,” they say. “

Since Milei became president, a third of the kiosks have closed,” the vice president of the Union of Kioskers of the Argentine Republic (UKRA), Ernesto Acuña, told Radio 750.

He also stated that the drop in consumption threatens to wipe out a sector that historically had good profitability and profit margins, but which now, in the midst of the crisis, “is disintegrating.” According to Acuña, “almost 50 kiosks close every day.”

“Today we have 59,850 in Argentina and day by day they keep closing while chains open,” he said.

 

[TonyTigre]

...threatens to wipe out a sector that historically had good profitability and profit margins, but which now, in the midst of the crisis...

...day by day they keep closing while chains open...

When they had "good profitability and profit margins" doesn't that mean the customers were paying prices that were too high? For too long, Argentina business owners think they can charge whatever they want and people will continue to buy due to the lack of competition.

If chains are opening to replace the closed kiosks, aren't the customers getting better prices?

I am on the side of customers getting better prices even if all the kiosks close as long as there are multiple chain stores and online retailers continue to compete.

 

[Betsy Ross]

When they had "good profitability and profit margins" doesn't that mean the customers were paying prices that were too high? For too long, Argentina business owners think they can charge whatever they want and people will continue to buy due to the lack of competition.

If chains are opening to replace the closed kiosks, aren't the customers getting better prices?

I am on the side of customers getting better prices even if all the kiosks close as long as there are multiple chain stores and online retailers continue to compete.

I agree this typically was a very good business. One of my friends here owns a few kioskos. I am on the side of lower prices too but it's sad to see the independent kiosks going out of business. @TonyTigre based on what my friend told me even the big chains aren't going to be able to make it. She is probably going to close her 3 that she has. She said that electricity prices, rentals, insurance have jumped up too much. She didn't think the big companies could make it either.

 

[Wally]

I agree this typically was a very good business. One of my friends here owns a few kioskos. I am on the side of lower prices too but it's sad to see the independent kiosks going out of business. @TonyTigre based on what my friend told me even the big chains aren't going to be able to make it. She is probably going to close her 3 that she has. She said that electricity prices, rentals, insurance have jumped up too much. She didn't think the big companies could make it either.

I doubt the bigger chains can make it either based on what I hear from friends that also have a kiosk. Just think it comes down to the utility prices skyrocketing and consumer consumption down big time. Sure maybe a few of the independent places will get replaced but I think the new reality is not having a kiosk on each corner.

 

[Blockchain]

When they had "good profitability and profit margins" doesn't that mean the customers were paying prices that were too high? For too long, Argentina business owners think they can charge whatever they want and people will continue to buy due to the lack of competition.

If chains are opening to replace the closed kiosks, aren't the customers getting better prices?

I am on the side of customers getting better prices even if all the kiosks close as long as there are multiple chain stores and online retailers continue to compete.

Totally agree. I went to a few stores in the mall where a shirt was $300 USD. That same thing in the States would probably be like $75. Should that store really stay in business? Or any stores charging those kind of prices? I thought most of the kiosks were expensive. I was spending equivalent of $1.5 USD for a pack of gum. or 3,000 pesos for a bottled water. Come on!

 

[crypto]

I agree this typically was a very good business. One of my friends here owns a few kioskos. I am on the side of lower prices too but it's sad to see the independent kiosks going out of business. @TonyTigre based on what my friend told me even the big chains aren't going to be able to make it. She is probably going to close her 3 that she has. She said that electricity prices, rentals, insurance have jumped up too much. She didn't think the big companies could make it either.

I saw them closing down but I had no idea this many! This is alarming isn't it? A supposedly recession proof type business all collapsing. At what point will people start thinking Milei is not really doing a good job?

 

[Avocado]

I saw them closing down but I had no idea this many! This is alarming isn't it? A supposedly recession proof type business all collapsing. At what point will people start thinking Milei is not really doing a good job?

Milei is ruining the country. You can see it daily. Crypto remember the movie Titanic when the boat was sinking and people were playing the violins? Many of us Argentines are like that right now. Look at all the news! Disaster. No one can spend, prices keep going up.

 

[Cheap Bastard]

When they had "good profitability and profit margins" doesn't that mean the customers were paying prices that were too high? For too long, Argentina business owners think they can charge whatever they want and people will continue to buy due to the lack of competition.

If chains are opening to replace the closed kiosks, aren't the customers getting better prices?

I am on the side of customers getting better prices even if all the kiosks close as long as there are multiple chain stores and online retailers continue to compete.

Agree. Sad but maybe there aren't meant to be a corner store on every block. That isn't realistic. You don't see that in Manhattan anywhere.

 

[Finance Prof]

When they had "good profitability and profit margins" doesn't that mean the customers were paying prices that were too high? For too long, Argentina business owners think they can charge whatever they want and people will continue to buy due to the lack of competition.

If chains are opening to replace the closed kiosks, aren't the customers getting better prices?

I am on the side of customers getting better prices even if all the kiosks close as long as there are multiple chain stores and online retailers continue to compete.

Agree that for too long many places were raping clients and charging too much but we're at a breaking point for places going under. Milei raised prices too fast for a lot of things. Also the exchange rate policy is out of whack. No reason a Big Mac is more expensive than anywhere in the world outside of Switzerland.

Utility prices is what is killing most businesses. Too high. Many places don't even have the AC on and sweating like crazy. That never happened before in all the years I've been in BA.

 

[Edmonton]

When they had "good profitability and profit margins" doesn't that mean the customers were paying prices that were too high? For too long, Argentina business owners think they can charge whatever they want and people will continue to buy due to the lack of competition.

If chains are opening to replace the closed kiosks, aren't the customers getting better prices?

I am on the side of customers getting better prices even if all the kiosks close as long as there are multiple chain stores and online retailers continue to compete.

Come on Tony! Do you really think that more places are opening up? It's not just kioskos. 40 small businesses are closing EVERY DAY man. Don't tell me you're one of those that really thinks Milei is a miracle worker and everything is getting fixed?? 🤣🤣🤣

 

[Starfish]

Think it's clear to most people this is not going to end up well. These kiosks are a good barometer for the typical company. Man if they can't make it, very telling. Not saying I have the answers but sure as hell know that all these businesses shutting down, no consumption, homelessness increase, continuation of price increases is not the solution either.

 

[sophos]

Think it's clear to most people this is not going to end up well. These kiosks are a good barometer for the typical company. Man if they can't make it, very telling. Not saying I have the answers but sure as hell know that all these businesses shutting down, no consumption, homelessness increase, continuation of price increases is not the solution either.

Milei inherited a mess but he also is far from blame for some of the problems Argentina is having. Long story short, he ain't winning any Nobel prizes any time soon.

 

[citygirl]

Think it's clear to most people this is not going to end up well. These kiosks are a good barometer for the typical company. Man if they can't make it, very telling. Not saying I have the answers but sure as hell know that all these businesses shutting down, no consumption, homelessness increase, continuation of price increases is not the solution either.

It just seems to be no slowdown in places going under. I talked to some places that I frequent and it's sad that many companies that have been around for over 50 years are going under. It just seems about impossible for the domestic market to function under current scenario with not really any investments and rentals, utilities and everything jumping up in price and consumers not spending. Most are tapped out by the 15th of the month which also shows with delinquency rates.

 

[TonyTigre]

Mercado Libre, Carrefour, Cencosud, Coto, Frávega , Shein, Temu

Amazon, Walmart, Target, Costco, eBay, Best Buy, Wayfair, Kroger, Albertsons, Dollar General

^ That's the only way to get reasonable and affordable prices. It doesn't happen from everyone getting bigger paychecks or having a large number of inefficient small businesses. Millions of new efficient small businesses exists now because of Amazon after they put hundreds of thousands of inefficient ones out of business.

 

[Dick]

Mercado Libre, Carrefour, Cencosud, Coto, Frávega , Shein, Temu

Amazon, Walmart, Target, Costco, eBay, Best Buy, Wayfair, Kroger, Albertsons, Dollar General

^ That's the only way to get reasonable and affordable prices. It doesn't happen from everyone getting bigger paychecks or having a large number of inefficient small businesses. Millions of new efficient small businesses exists now because of Amazon after they put hundreds of thousands of inefficient ones out of business.

There was a pity party for the mom and pop stores too when Amazon started in the US but that didn't last long. Now everyone uses them. No reason to go to the store. Boxes show up daily at my place when I'm home. I wish they had Amazon in BA!

 

[former expat]

I agree this typically was a very good business. One of my friends here owns a few kioskos. I am on the side of lower prices too but it's sad to see the independent kiosks going out of business. @TonyTigre based on what my friend told me even the big chains aren't going to be able to make it. She is probably going to close her 3 that she has. She said that electricity prices, rentals, insurance have jumped up too much. She didn't think the big companies could make it either.

Just talked to one of my friends that her family has owned kioskos for 25 years. They have 4 of them and they are closing down 3 of them. She said that many things aren't high margin. Just volume but now they don't have any volume and at the same time the expenses are eating them alive. The only thing she said is preventing the last one is that was the only local that they owned and not paying rent on.

She said it's not profitable anymore. Electricity, taxes, internet, rent, salaries is too much. Sounds like the ones that probably are going to make it long term are people that own their spots and don't have to pay rent.

 

[Digital Nomad]

When they had "good profitability and profit margins" doesn't that mean the customers were paying prices that were too high? For too long, Argentina business owners think they can charge whatever they want and people will continue to buy due to the lack of competition.

If chains are opening to replace the closed kiosks, aren't the customers getting better prices?

I am on the side of customers getting better prices even if all the kiosks close as long as there are multiple chain stores and online retailers continue to compete.

Does anyone know what the typical kiosk was making each year?

 

[MikeYoung]

Does anyone know what the typical kiosk was making each year?

I just asked Grok and this is what it said. Sounds like no money in these anymore. It says typically net profit of $3,500 to $9,000 per YEAR. Jesus my cleaning lady makes more than that.

The typical kiosco (kiosko) owner in Buenos Aires (CABA or Greater Buenos Aires) faces a highly variable situation in 2026, with the sector in deep crisis. According to the Unión de Kiosqueros de la República Argentina (UKRA) and recent reports, around 50 kioscos close per day nationwide due to falling consumption, high fixed costs (rent, utilities, taxes), competition from chains/supermarkets/pharmacies, and low margins. Many traditional neighborhood kioscos are barely breaking even or losing money, with the sector described as "no longer rentable" for many.Gross income refers to total annual revenue (ventas/facturación), while net income is profit after all expenses (cost of goods, rent ~ARS 200k–500k+/month in BA, utilities, taxes/IVA, employee wages if any, etc.). Margins are typically 25–35% on average (higher on cigarettes ~30–40%, lower on snacks/beverages), but after fixed costs, net profitability often drops to 10–20% or less for many.Estimates for a Typical Neighborhood Kiosco in Buenos Aires (2025–2026 data)

• Small/average traditional kiosco (barrio, 15–30 m², family-run, open ~12–16 hours/day):
  • Gross annual revenue: ARS 50–120 million (~ARS 4–10 million/month). Examples include one sale listing at ARS 80 million/year; many report lower in tough times.
  • Net annual income (owner's take-home/profit): Often ARS 5–15 million (~ARS 400k–1.2 million/month), but many owners report ARS 400k–800k/month in "good" periods, equating to ~ARS 5–10 million/year. In poorer months or locations, it can drop to subsistence levels (ARS 300k–500k/month or less), barely covering basics.
• Better-located or "maxi-kiosco" (good foot traffic, cigarettes/alcohol focus, perhaps extended hours):
  • Gross: Up to ARS 200–300+ million/year in stronger cases.
  • Net: ARS 10–30+ million/year possible, but rare now due to recession.

Specific Recent Examples (from interviews/videos 2024–2025)

• One owner (Matías, Dec 2024/early 2025): ~ARS 400,000–800,000–1,000,000/month as owner (higher than employees at ~ARS 400k average), working Mon–Sat. This shocked people as "lower than expected" — annual net ~ARS 5–12 million.
• Another: "Maxi kiosco" investment ARS 30 million, average monthly earnings ARS 6 million (likely gross or semi-net; unclear).
• Franchise models (e.g., Draxxo 24h automated, 2025 data): ARS 28 million/month gross, ~15–16% net margin → ~ARS 4.4 million/month net (ARS 53 million/year), but these are modern/invested setups, not typical family kioscos.
• Union rep (Ernesto Acuña, 2026): Gross margins ~30%, but subtract 10%+ for fixed costs → very thin net, with many "desintegrating" and earning less than before.

Key Factors Affecting This in Buenos Aires

• Location: High-traffic (near schools, offices, avenues) = higher gross/net; residential barrios = lower.
• Product mix: Cigarettes drive big volume/margins (but high taxes/compliance); snacks, drinks, top-ups variable.
• Operation: Owner-operated (no employee costs) boosts net; many work 70+ hours/week ("slave-like").
• Economy 2026: Recession + low consumption means many owners earn less than a formal employee salary (~ARS 400k–600k/month average for kiosquero employees).
• USD equivalent (rough, using parallel/blue rates ~ARS 1,300–1,500/USD in early 2026): Typical net ~USD 4,000–10,000/year for struggling ones; better ones USD 10,000–25,000+/year.

In short, a typical owner in Buenos Aires today makes gross ARS 60–100 million/year (USD 40k–70k) and net ARS 5–12 million/year (USD 3,500–9,000), but with huge variance — many closer to the low end or losing money, especially post-2024/2025 crisis. It's often more "self-employment survival" than high profit.