Fallow and Other London Dining Giants Expand Across the Gulf Despite Regional Tensions

James Robson, the co-owner of the highly regarded London eatery Fallow, has recently finalized an agreement to open a new location in the Gulf region. The decision marks a significant step for one of the capital's most popular dining destinations, which currently serves approximately one thousand patrons daily. Robson identifies a combination of domestic fiscal pressure and a more robust work ethic abroad as the central factors behind this international expansion.

Fallow is not the sole establishment making this move. Several other prominent London venues have already established a presence in the United Arab Emirates. Scott's of Mayfair, a well-known celebrity spot, has opened in Dubai, as have the two Michelin-starred Indian restaurant Gymkhana and the upscale Chinese venue Park Chinois. Additionally, the Borough Market bakery Bread Ahead has expanded its footprint there, while Isabel's, a long-standing Mayfair favorite among political figures, has launched an outpost in Abu Dhabi.

These new openings occur against a backdrop of ongoing geopolitical conflict in the Middle East. Earlier this year, the war between the United States, Israel, and Iran resulted in bombardment in Dubai and triggered a significant departure of expatriates. Some existing dining establishments continue to face challenges; for instance, Dinner by Heston has remained temporarily closed due to the aftermath of the conflict. The Michelin guide also faced criticism earlier this month for listing sixteen restaurants that were either permanently or temporarily shut, a situation attributed to inspections that took place before the war began.

Robson, who is currently in Hong Kong evaluating Asian market opportunities, has highlighted East Asia, the United States, and the Gulf as critical growth areas. He noted that while America supports business, the Gulf offers active encouragement, and East Asia possesses a work ethic and tax structure that he believes outperforms the British model. A primary point of contention for industry figures is the value-added tax on hospitality. At twenty percent, the UK rate ranks among the highest in Europe, where the average for restaurants is approximately twelve percent, compared to ten percent in Italy.

The industry is pressing Chancellor Andy Burnham to reduce this rate in next week's budget. Robson described the nation as having "sleepwalked into multiple anti-growth taxations" over the past two fiscal years and anticipates further measures soon. He also cited a twenty-five percent corporation tax and a dividend tax of forty percent or more, advocating for a rate closer to European standards. Michelin-starred chef Jason Atherton, who now spends a third of his time at his Dubai operation, agrees that profitability is more attainable abroad than in London.

While Robson does not resent contributing to the national deficit, he argues that domestic growth no longer provides a balanced risk-reward profile, leading him to play it safe at home while focusing on overseas expansion. However, human rights advocates are urging caution regarding the Gulf expansion. Felix Jakens, the director of campaigns at Amnesty International UK, pointed out the region's poor record on workers' rights and labor protections. He emphasized that heavy UK spending on the region's image, particularly through sports sponsorships, should not obscure the treatment of workers.

Jakens noted that migrant workers, who constitute the majority of the UAE population, remain tied to employers through a sponsorship system that can expose them to abuse and denies them the right to form trade unions. He insisted that any British business expanding into the region must conduct thorough human rights due diligence to ensure kitchen staff are treated fairly, compensated appropriately, and feel secure when raising concerns without fear of losing their employment or visa status.