British restaurant groups expand into Gulf states amid UK tax pressures
Several prominent British restaurants are opening branches in Gulf states, with Fallow co-owner James Robson citing high UK taxes and more supportive business conditions abroad. The expansion matters because it highlights the pressure hospitality businesses say they face in Britain, while raising concerns about the rights of workers in the countries they are entering.
Fallow serves about 1,000 people a day and has agreed to open in the Gulf; other British names have opened in Dubai and Abu Dhabi. UK hospitality VAT is 20%, compared with a European restaurant average of about 12%, and Robson also points to corporation and dividend taxes. Amnesty International says migrant workers in the UAE face weak protections and cannot form trade unions, while some Dubai restaurants have struggled amid regional conflict.
In short
- British restaurants are expanding into Gulf states.
- Fallow’s co-owner blames UK taxes and business conditions.
- Amnesty warns of poor worker protections in the UAE.
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The case for
Expanding into Gulf states can help restaurant groups reach new customers and grow when high UK VAT and other taxes make hospitality businesses less viable. Supporters may argue that investment abroad sustains jobs and skills, and that operating under different rules is a legitimate business choice so long as companies meet their responsibilities to staff.
The case against
Critics may argue that moving investment abroad can weaken UK hospitality and reflects a tax system that should be addressed through domestic policy rather than business relocation. They may also question expansion into countries where migrant workers have limited protections and cannot form trade unions, saying commercial growth should not come at the expense of workers’ rights.
Explained simply
British restaurant groups have been opening branches in Gulf cities such as Dubai and Abu Dhabi. Fallow, a London restaurant co-owned by James Robson, is among those planning to expand into the region.
Restaurant businesses in Britain pay 20% VAT on food and drink, and owners also face taxes on company profits and dividends. Robson says the tax burden and business conditions are among the reasons to look abroad; some restaurants in Dubai have also faced disruption linked to regional conflict.
The expansion brings attention to working conditions in the countries involved. Amnesty International says migrant workers in the United Arab Emirates have limited protections and cannot join trade unions.
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Originally published by The Guardian as “No unions, low taxes: why some of Britain’s top chefs are opening outposts in Gulf states”.