Several of London’s most celebrated restaurants are expanding to the Gulf states, driven by what one leading restaurateur describes as a “tax tsunami” in the UK that makes business growth increasingly unattractive at home, according to The Guardian.
James Robson, co-owner of Fallow in St James’s Market – considered one of the capital’s hottest dining destinations, serving 1,000 customers daily – has signed a deal to open in Dubai. The Instagram phenomenon, which has amassed 650,000 followers with its striking dishes such as whole cod’s head in spicy butter sauce, is following a trend set by other high-profile establishments.
Scott’s of Mayfair, the two Michelin-starred Indian restaurant Gymkhana, upmarket Chinese venue Park Chinois, and Mayfair’s Isabel’s have all opened outposts in Dubai or Abu Dhabi. Even trendy Borough Market bakery Bread Ahead has branched out to the emirate.
UK tax burden cited as main driver
Speaking from Hong Kong while exploring Asian opportunities, Robson explained that east Asia, the United States and the Gulf represent key growth targets. “America champions business, the Gulf actively encourages and assists, whilst east Asia has a work ethic and taxation system that puts the UK to shame,” he said.
The restaurateur pointed to Britain’s 20% VAT rate for hospitality, among the highest in Europe, where the average for restaurants sits around 12%. Italy, for comparison, charges 10% on restaurant food. Combined with 25% corporation tax and dividend tax exceeding 40%, Robson argued the risk-reward balance for UK growth has disappeared.
“We have had a tsunami of taxes that have got to the point where taking business risk simply does not make sense in the UK,” he said, adding that the country has “sleepwalked into multiple anti-growth taxations” over recent budgets.
Michelin-starred chef Jason Atherton, who now spends a third of his time at his Dubai restaurant, confirmed it is easier to turn a profit abroad than in London.
Human rights concerns over Gulf expansion
However, human rights organisations have raised concerns about worker protections in the United Arab Emirates. Felix Jakens, Amnesty International UK’s director of campaigns, warned that Dubai’s attractive business environment masks a poor record on workers’ rights and labour exploitation.
“Migrant workers, who make up the majority of the UAE’s population, remain bound by a sponsorship system that ties them to their employers and exposes them to labour abuse,” Jakens said. “They are denied the right to form trade unions, leaving them few ways to challenge unfair treatment.”
He urged any UK business expanding to the Gulf to conduct proper human rights due diligence to ensure kitchen staff are treated fairly, paid properly and able to raise concerns without fear of losing their job or visa.
The Gulf market is not without risks. Dinner by Heston in Dubai remains temporarily closed following fallout from regional conflict, which earlier this year caused an exodus of expatriates. The Michelin guide faced criticism this month for listing 16 restaurants that were either permanently or temporarily shut.
Robson emphasised he had no resentment about paying UK tax and felt “privileged” to contribute to the country’s deficit. “My point is UK growth simply does not have any risk-reward balance any more, therefore it’s play incredibly safe here and focus overseas,” he said.
What this means for Poles in the UK
For Poles working in Britain’s hospitality sector – one of the largest employers of EU nationals – this trend signals both challenges and opportunities. While fewer new restaurant openings in the UK may limit job growth at home, Polish chefs, managers and front-of-house staff with British experience may find opportunities in Gulf expansion, where UK restaurant brands value experienced personnel familiar with their standards.
However, those considering work in the UAE should research the sponsorship system carefully. Unlike UK employment law, which offers protections regardless of nationality, the Gulf’s kafala system ties workers’ visas to their employers, making it harder to change jobs or challenge poor treatment. Poles with settled or pre-settled status in the UK enjoy significantly stronger employment rights and should weigh these protections against potentially higher tax-free salaries abroad.
The hospitality sector’s complaints about UK taxation may also influence the government’s approach in upcoming budgets, potentially affecting VAT-registered self-employed workers and small restaurant owners within the Polish community.