Leading figures in London’s highly competitive restaurant scene are increasingly moving to open outposts in Gulf countries, saying that more favourable tax regimes and active government support make expansion abroad attractive.
James Robson, co-owner of Fallow in St James’s Market — a restaurant that has been described as one of the capital’s hottest and serves around 1,000 covers a day — has signed a deal to establish a branch in the Gulf. Robson and others point to what he called a “tax tsunami” in the UK as a driving force behind the decision.
Push and pull factors
Owners cite a combination of push factors at home and pull factors abroad. In interviews, restaurateurs have said Gulf governments actively assist businesses with establishment and operation, and offer low-tax environments. Some also contrasted conditions in parts of east Asia, which they said can offer a stronger work ethic and operational discipline.
Industry observers say the moves form part of a broader pattern of hospitality groups seeking growth in markets that promise faster returns and lighter regulatory or fiscal burdens. While chefs and owners frame the decisions largely in economic terms, the trend is likely to fuel debate over competitiveness and policy for the UK hospitality sector.
Looking ahead
Executives who have moved or are planning to expand overseas say they will continue to operate in London, but want international outposts to diversify revenue and reduce exposure to domestic policy changes. The extent and long-term impact of the shift will depend on market conditions in the Gulf and on how the UK responds to concerns from the sector about taxation and labour issues.