London Kitchens Seek Refuge Abroad

Several of London's most celebrated dining establishments are establishing presences in the Gulf region, with one prominent operator pointing to a "tax tsunami" at home alongside a more vigorous work ethic abroad as the driving forces behind the shift. James Robson, co-owner of the St James's Market venue Fallow, recently finalized an agreement to launch an outpost in the region. The restaurant, which serves 1,000 patrons daily, has built a significant following on Instagram, where it counts 650,000 users, and has drawn attention for presentations such as a whole cod's head coated in a spicy butter sauce.

This venture is part of a broader trend. Scott's of Mayfair, Gymkhana, Park Chinois, Bread Ahead, and Isabel's have all established locations in the Gulf or Abu Dhabi. Such openings are proceeding despite conflict in the Middle East. The US-Israeli war in Iran earlier this year caused bombardment in Dubai and an exodus of expats, leading to the temporary closure of Dinner by Heston since the fallout. The Michelin guide faced criticism earlier this month for listing 16 restaurants that were permanently or temporarily closed, apparently because some inspections took place at the start of the year, before the war began.

Robson, speaking from Hong Kong, identified East Asia, the United States, and the Gulf as 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. Hospitality VAT remains a central complaint. At 20%, the UK rate is among the highest in Europe, where the average for restaurants is about 12%. Italy charges 10% on food sold in restaurants. Chefs are urging Andy Burnham to cut the rate in next week's budget. Robson said the country had "sleepwalked into multiple anti-growth taxations" in the last two budgets and expects more next week. He also pointed to 25% corporation tax and dividend tax of 40% or more, and asked for VAT to be brought closer to European levels.

Michelin-starred chef Jason Atherton now spends a third of his time at his Dubai restaurant and says it is easier to make a profit abroad than in London. Robson said he does not resent paying UK tax and is proud to contribute to the country's deficit, but argued that UK growth no longer offers a sensible balance of risk and reward, so he is playing it safe at home and focusing overseas.

Human rights campaigners urge caution. Felix Jakens, Amnesty International UK's director of campaigns, said the UAE has a very poor record on workers' rights and protection from labour exploitation, and that its heavy spending on its UK image, not least through Manchester City, should not distract from how workers are treated. Jakens said 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 abuse. They are denied the right to form trade unions. He said any UK business expanding into the Gulf must carry out proper human rights due diligence so kitchen staff are treated fairly, paid properly and able to raise concerns without fear of losing their job or visa.

The push to relocate operations overseas highlights the tension between maintaining a presence in London's competitive dining scene and seeking environments with more favorable fiscal conditions and labor practices. While the UK's hospitality sector continues to attract significant attention, the decision by some of its most prominent figures to invest elsewhere signals a potential shift in the landscape of the industry.