Gulf Expansion: London Dining Giants Open Outposts Abroad

London’s restaurant scene has long been a global benchmark for fine dining, yet a wave of its most prominent operators is now establishing new bases in the Middle East. The shift marks a notable departure for brands that previously relied almost exclusively on domestic foot traffic.

James Robson, co-owner of Fallow in St James's Market, recently signed a deal to open a branch in the region. Fallow serves approximately 1,000 customers daily and has built a following of 650,000 on Instagram. The restaurant is known for specific dishes, including a whole cod's head prepared in a spicy butter sauce.

Robson is not the first London operator to make this move. Scott's of Mayfair, a venue popular with celebrities, has already opened in Dubai. Two Michelin-starred Indian restaurant Gymkhana and the upscale Chinese venue Park Chinois have also expanded there. Additionally, Borough Market bakery Bread Ahead has opened a location in Dubai, while Mayfair institution Isabel's has set up in Abu Dhabi.

The expansion continues despite regional instability. The US-Israeli war in Iran earlier this year caused disruptions in Dubai, prompting some expats to leave. Dinner by Heston, for example, has remained temporarily closed since the conflict. The Michelin guide also faced criticism in October for listing 16 restaurants that were already closed, a result of inspections conducted before the war began.

Financial pressure in the UK is the primary driver for these moves. Robson described the domestic tax environment as a "tax tsunami." He noted that hospitality VAT stands at 20%, a rate among the highest in Europe. The average restaurant VAT in Europe is about 12%, and Italy charges only 10% on food sold in restaurants. Robson also pointed to a 25% corporation tax rate and dividend taxes exceeding 40% as factors that make domestic growth less attractive.

Chefs are urging UK Chancellor Andy Burnham to lower these rates in next week's budget. Robson argued that the country has "sleepwalked into multiple anti-growth taxations" over the last two budget cycles. He stated that while he does not resent paying tax, the current balance of risk and reward in the UK no longer justifies taking large bets on domestic expansion.

Michelin-starred chef Jason Atherton now spends a third of his time at his Dubai restaurant, noting that it is easier to make a profit abroad than in London. Robson, who is currently in Hong Kong exploring Asian markets, said the Gulf actively encourages business while the UK tax system puts the country to shame compared to East Asia.

Human rights groups have raised concerns about the move. Felix Jakens, director of campaigns at Amnesty International UK, said the UAE has a poor record on workers' rights. He noted that migrant workers, who make up the majority of the population, are bound by a sponsorship system that ties them to employers. Jakens urged expanding UK businesses to conduct proper due diligence to ensure staff are paid fairly and can raise concerns without fear of losing their visas.