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Dubai’s booming restaurant scene feeling the heat of high costs, high failure rates

by Food
July 3, 2025
in World
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DUBAI, United Arab Emirates — From suspended tables to underwater lounges, some 13,000 foods and drinks institutions in Dubai pull out all of the stops to draw clients in one of many world’s most saturated eating markets.

They cater to all tastes and budgets. Some spots ladle out cheap biryani whereas others provide dishes dusted with edible gold.

These are among the methods the emirate is competing with its neighbors Saudi Arabia and Qatar for vacationer {dollars} and, thus far, it’s beating them handily. Dubai has extra eating places per capita than any main metropolis besides Paris.

However the city-state’s booming restaurant scene is testing the bounds of its growth-at-all-costs mannequin, elevating questions on how lengthy Dubai can hold feeding its personal ambitions.

The competitors is cutthroat, so presentation is essential.

“Gone are the times when it simply tastes good,” mentioned Kym Barter, the overall supervisor of Atlantis The Palm, a resort perched on a artifical archipelago that boasts extra Michelin stars than every other venue within the Center East.

However dazzling Dubai’s meals bloggers — the most well-liked of whom have thousands and thousands of social media followers — isn’t sufficient. Staying afloat means battling excessive rents and successful over a various and demanding group of shoppers.

Dubai has roughly 9 expatriate residents for each Emirati citizen. Most of its personal sector employees are migrants on short-term contracts, and solely Vatican Metropolis has a better share of foreign-born residents.

Vacationers, in flip, outnumber locals about 5 to at least one by some estimates, and so they spend lavishly. Guests to Dubai drop a mean of over 5 instances greater than these touring to close by Saudi Arabia and even the U.S., in accordance with world restaurant advisor Aaron Allen.

Dubai is “on the appropriate path” to changing into the world’s meals capital, mentioned Torsten Vildgaard, government chef at FZN by Björn Frantzén. The restaurant, which runs at greater than $540 a head, was one among two in Dubai to nab three Michelin stars in Might.

“We’re solely seeing the tip of the iceberg of what’s to return by way of gastronomy right here,” Vildgaard added.

With every new set of illuminated high-rises and motels, one other crop of eateries emerge, vying for patrons. The legions of building employees powering Dubai’s progress additionally want inexpensive choices.

That progress, propped up partially by investor strain on among the world’s greatest chains to increase in Dubai, has created what some analysts warn is a bubble.

“When you’re a publicly traded firm like Americana, what are you speculated to do — simply cease opening eating places?” restaurant advisor Allen mentioned, referring to the Gulf-based operator of KFC, Pizza Hut and different large franchises.

The frenetic growth of Dubai’s restaurant trade is a part of a regional shift that has seen Gulf Arab states pour tons of of billions of {dollars} into constructing out vacationer locations as they transfer away from hydrocarbons to diversify their economies. Saudi Arabia has a high-stakes, $500 billion mission: a straight-line futuristic metropolis known as Neom.

However, in a Muslim-majority area, the United Arab Emirates has gone to lengths that some contemplate an excessive amount of of a compromise, together with enjoyable restrictions on alcohol that gasoline its pubs and nightlife and different social reforms.

The fast growth comes at a value. Dubai’s eating places have a excessive failure fee, trade veterans say, although native authorities do not say what the speed of closures is. Within the downtown district and different prime areas, annual rents for eating places can prime $100 per sq. foot. That’s on a par with among the world’s costliest cities.

Nonetheless, the emirate issued nearly 1,200 new restaurant licenses final 12 months, in accordance with Dubai’s Division of Financial system and Tourism. The division declined to answer questions.

Empty tables throughout peak hours are frequent, even in prime places. A part of the issue, managers say, is that site visitors congestion is so extreme that convincing diners to drive out generally is a tall process.

“I generally go, ‘Do I am going into the restaurant proper now, as a result of I’m going to get into site visitors?’’’ mentioned Waseem Abdul Hameed, operations supervisor at Ravi, a Pakistani family-owned eatery well-known for its official Adidas shoe line and a 2010 TV function from Anthony Bourdain.

He is aware of restaurateurs who’ve needed to shut up store and others who’re squeezed by slim margins and more and more reliant on supply apps, Hameed mentioned.

The demand sends fleets of migrant employees racing by means of gridlock on motorbikes, with few protections and tight supply home windows. Emirati newspaper Khaleej Instances reported the unintended deaths of 17 Dubai meals couriers final 12 months.

The maths of Dubai’s restaurant scene does not add up, supply apps and rich vacationers however, restaurant advisor Allen mentioned. He cited working bills which have greater than doubled relative to gross sales since 2009, when a monetary disaster nearly hobbled the emirate.

Too many Dubai entrepreneurs, he put it merely, have “an excessive amount of cash, and so they don’t know what to do in addition to open eating places.”



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Tags: BoomingcostsDubaisfailureFeelingHeatHighratesrestaurantscene
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