No unions, low taxes: why some of Britain’s top chefs are opening outposts in Gulf states

London’s culinary elite are increasingly looking beyond the British Isles for growth, with a wave of high‑profile restaurants opening outposts in the Gulf states. The trend, driven by what co‑owner James Robson of the acclaimed Fallow describes as a “tax tsunami” at home, reflects a broader reassessment of where fine‑dining ventures can thrive in a post‑pandemic, post‑war world. While the United Kingdom wrestles with one of Europe’s highest hospitality VAT rates and looming corporation and dividend taxes, chefs are finding the Gulf’s proactive business climate and, in the eyes of some, a more disciplined work ethic abroad, an attractive alternative.

The tax pressure cooker in the UK hospitality sector

Robson’s frustration is echoed across the industry. UK hospitality currently faces a 20 % VAT rate – the highest in Europe – while the continental average sits around 12 %. Italy, for example, applies a 10 % rate to restaurant meals. The disparity has become a rallying point for restaurateurs who argue that the tax burden erodes profitability and discourages investment. “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,” Robson told The Guardian, adding that the last two budgets have introduced “multiple anti‑growth taxations”.

Beyond VAT, the UK tax landscape includes a 25 % corporation tax and dividend taxes that can exceed 40 %. For a sector already grappling with rising ingredient costs and labour shortages, these levies compound the challenge of maintaining a viable risk‑reward balance. Chefs have called on Greater Manchester’s mayor, Andy Burnham, to use the upcoming budget to align the UK’s VAT rate with European norms, hoping that a reduction would restore some competitive parity.

Gulf states as a magnet for high‑end dining

The United Arab Emirates, and Dubai in particular, have positioned themselves as welcoming hosts for international culinary brands. Robson, who has just signed a deal to open a Fallow outpost in the Gulf, highlighted the region’s proactive stance: “the Gulf actively encourages and assists” businesses looking to set up. This sentiment is reflected in the growing list of London‑origin restaurants that have already planted roots in the emirate, from the celebrity hotspot Scott’s in Mayfair to the two‑Michelin‑starred Indian venue Gymkhana, the upscale Chinese eatery Park Chinois, and the Mayfair institution Isabel’s, now operating in Abu Dhabi.

Even niche players such as the Borough Market bakery Bread Ahead have expanded into Dubai, suggesting that the appeal is not limited to fine‑dining but extends to artisanal and casual concepts alike. The common denominator appears to be a combination of tax incentives, streamlined licensing processes and a government keen to showcase a cosmopolitan image through high‑profile culinary ventures.

East Asia and the United States: complementary growth markets

While the Gulf offers tax advantages, Robson also earmarked East Asia and the United States as key growth targets. Speaking from Hong Kong, he praised East Asia’s “work ethic and taxation system that puts the UK to shame”, indicating that the region’s disciplined labour practices and lower tax burdens are equally compelling. The United States, he noted, “champions business”, underscoring a perception that the American market remains fertile for expansion, especially for brands with strong social‑media followings.

Fallow’s Instagram presence, with 650,000 followers, exemplifies the digital leverage that modern restaurateurs wield. Such platforms not only amplify brand visibility but also serve as a conduit for attracting overseas investors and customers, making the prospect of overseas branches more financially viable than ever before.

Human‑rights concerns in the Gulf

Despite the commercial allure, the Gulf’s labour practices have drawn sharp criticism from human‑rights organisations. Amnesty International UK’s director of campaigns, Felix Jakens, warned that the UAE’s “very poor record on workers’ rights” poses ethical dilemmas for British businesses. The country’s sponsorship system, which ties migrant workers to their employers, limits their ability to change jobs and exposes them to potential exploitation. Moreover, the prohibition on trade unions leaves workers with few avenues to contest unfair treatment.

Jakens urged any UK firm expanding into the Gulf to conduct rigorous human‑rights due diligence, ensuring that kitchen staff receive fair wages, safe conditions and the freedom to raise concerns without fear of losing their visa. The warning comes amid broader scrutiny of the UAE’s image‑building efforts, such as high‑profile sponsorship of Manchester City, which some argue masks underlying labour issues.

Operational challenges and the shadow of conflict

Geopolitical instability adds another layer of complexity. Earlier this year, Dubai endured bombardment and an exodus of expatriates following the US‑Israeli war in Iran. The conflict forced the temporary closure of high‑profile venues such as Dinner by Heston, which remains shuttered due to the fallout. The Michelin guide also faced criticism after listing 16 restaurants that were either permanently or temporarily closed, suggesting that inspections conducted before the war may have misrepresented the current state of the culinary scene.

Nevertheless, restaurateurs like Jason Atherton, a Michelin‑starred chef who now spends a third of his time at his Dubai restaurant, maintain that profitability abroad outweighs the risks. “It is easier to make a profit abroad than in London,” Atherton remarked, underscoring a pragmatic calculation that many peers are replicating despite the volatile backdrop.

Balancing patriotism with profit‑seeking

Robson insists his overseas ambitions do not diminish his commitment to the UK tax system. “I am incredibly proud of the taxes I pay and feel privileged that I can contribute to our country’s deficit,” he declared, positioning himself as a responsible citizen even as he seeks greener fiscal pastures. His stance reflects a broader tension within the sector: the desire to maintain national loyalty while navigating an unfavourable fiscal environment that, in their view, offers diminishing returns on risk.

This duality raises questions about the long‑term sustainability of the UK’s fine‑dining ecosystem. If the tax trajectory remains unchanged, more restaurateurs may follow Robson’s lead, potentially eroding the domestic talent pool and diminishing the vibrancy of London’s culinary landscape.

What the future may hold for British gastronomy

The current wave of Gulf expansion signals a strategic pivot for Britain’s top chefs, driven by a combination of fiscal pressure, attractive overseas incentives and a belief that foreign markets can deliver higher returns with lower risk. Yet the move is not without controversy. Human‑rights concerns, geopolitical volatility and the moral calculus of exporting a British brand to a region with contested labour standards all weigh heavily on the decision‑making table.

As the UK prepares its next budget, the industry will be watching closely for any policy shifts that could stem the outflow of culinary talent. Until then, the allure of tax‑friendly Gulf emirates, disciplined East Asian workforces and the entrepreneurial freedom of the United States will continue to shape the strategic choices of Britain’s gastronomic elite, redefining where the nation’s most celebrated plates are cooked, served and ultimately, savoured.

This article was produced with AI-assisted research and editorial support. Reporting is based on the source material cited below. Sources: The Guardian UK; theguardian.com; Global1.News (24 October 2026).

By Erica Thornton, Staff Writer