UAE restaurants grappling with rising food costs and a drop in trade due to the challenges of the Iran war are being given a lifeline by industry leaders stepping in to serve up crucial support.
A host of initiatives has been launched to help high-end restaurants and independent outlets weather the economic storm.
Food delivery company Talabat has opened up kitchens to home-grown restaurants, while supermarket chain Spinneys has introduced a weekly in-store scheme getting signature dishes from top chefs on to its shelves.
Dubai authorities also started the 'Fine way to Dine' campaign – which concludes on April 19 – offering discounts of up to 50 per cent at an array of venues.
Meanwhile, groups of industry professionals are organising informal restaurant takeovers – showing up, ordering generously and filling dining rooms that are quieter than usual.
It comes as supply chains falter, forcing kitchens to source key ingredients at inflated prices. Footfall is noticeably down across the country due to remote learning, reduced tourism and lingering uncertainty.
Adapting to adversity
Natasha Sideris, chief executive and founder of Tashas Group, told The National the impact has been uneven across her portfolio.
“It's been more noticeable across our elevated dining concepts, like Flamingo Room and Avli, particularly as they're more occasional by nature and tend to rely more on tourism,” she said.
“Tashas has been a little more sheltered in that sense, simply because it's so rooted in its neighbourhoods. It becomes part of people's daily rhythm.”
The group has streamlined menus, managed costs carefully and temporarily reduced salaries to protect its full workforce. Several elevated concepts – including Flamingo Room, Avli and Bungalo34 – have been launched on Deliveroo to capture delivery demand.
“Those that have truly become part of their communities, that people feel connected to, will always have a place,” said Ms Sideris. “When you're part of someone's everyday life you build a kind of trust and familiarity that carries you through moments like these.”
Redeploying staff
Evgeny Kuzin, whose Fundamental Hospitality group in Dubai has worked through the 2008 financial crisis and the Covid pandemic, is similarly measured.
He said its neighbourhood venues – La Maison Ani and Scalini Cucina – have remained resilient thanks to a strong local customer base, while hotel-based venues have felt the impact of reduced international travel.
The group has also redeployed staff to seasonal pop-ups in St Tropez, Bodrum and Egypt's North Coast to protect jobs during the quieter period.
“From an operational perspective, it is essential to remain disciplined – manage costs carefully, plan realistically and stay agile,” said Mr Kuzin. “But equally important is maintaining a long-term mindset. These periods require patience, composure and confidence in the market. Dubai has a proven ability to rebound with energy and momentum.”
Talabat opens its kitchens
Against this backdrop, Talabat has offered a helping hand. The delivery platform has launched an initiative specifically for UAE home-grown restaurants – offering access to its kitchen spaces at reduced or no cost until September, with the aim of helping them maintain operations by pivoting further into delivery.
The project attracted hundreds of applications, with only 100 places available. “The F&B space is the connective tissue of any community,” Simonida Subotic, vice president and managing director at Talabat UAE, told The National.
“We all have our favourites and places that certain neighbourhoods would not feel the same without. When they are in jeopardy, that certainly has an impact on the neighbourhoods and cities that we're all so used to living in.”
To qualify, restaurants must have originally started in the UAE, have been operating for at least two years and have at least a year's experience on any delivery platform. The criteria are deliberate to ensure sustainability.
Talabat is also using its data to match applicants with the right kitchen locations, factoring in which cuisines are underrepresented in which areas and where demand is most likely to convert.
The sheer volume of applications, Ms Subotic added, speaks to the broader picture. “It just highlights how vulnerable this industry is to any disruption when it comes to demand. But it also shows how quickly it adapts.”
Chefs in the shop window
Spinneys recently announced the launch of The Chef's Counter, in which signature dishes from celebrated local chefs and restaurants will be sold at its stores on a rotating basis each week.
“At a time when many independent operators are under real pressure, we see a responsibility to use our platform to support them,” said Warwick Gird, general manager of marketing and e-commerce at Spinneys.
Kick-starting the programme on Wednesday is chef Kelvin Jun. “Bringing Jun's and 852 Bakery favourites into Spinneys through The Chef's Counter feels incredibly special for our team because it's coming full circle,” he said. “Jun's has always been about community, connection and creating dishes that make people feel at home in this city we all share.”
Backing businesses
Food content creator Laura Lai Coughlin, who has been closely tracking the industry's mood, said it was heartening to see the food sector come together to face up to current challenges.
“There's a perception among some diners that higher prices mean higher profits, but the reality is far less glamorous,” Ms Coughlin said.
“Restaurants run on tight margins and heavy discounting often does more harm than good. In many ways, it comes down to us – the people who live here and love our chosen home.
Staying local
“If I had to generalise, fine dining is probably feeling the strain the most. Long, lavish meals are often first to be postponed when confidence dips.”
Business districts are quieter thanks to remote working, while hotel dining rooms, so dependent on occupancy, are lacking tourists.
“Neighbourhood spots are potentially the ones that are proving more resilient,” added Ms Coughlin. “There’s a shift towards staying local with people choosing familiarity, proximity and comfort above anything else.”
