Dubai chefs shrink menus as Iran war makes tomatillos, scallops harder to source
Lash and other chiefs say the two-month war in Iran has made supplying such supplies difficult and more expensive, at a time when the Gulf is grappling with the closure of the Strait of Hormuz sea lane and rising jet fuel prices are driving up air transportation costs.
Lash has reduced production, cut payroll and is purchasing supplies in smaller quantities for now; He expects these measures to be temporary. It focuses on popular home-made fajita kits and grocery items.
“The reality is that cargo has become more expensive, gasoline prices have increased, the Strait of Hormuz is still closed,” Lash told Reuters at his restaurant in Dubai’s popular Alserkal Street arts and culture district.
“This really creates problems for us in terms of our supply.”
Chefs in the glitzy city are adapting their menus, with some turning to more regional or prepared foods or offering fewer dishes. Dubai authorities have launched broader economic support measures, wage reductions and campaigns to keep people eating.
RESTAURANTS ENCOUNTER THE ‘STOP FOOT’ PERIOD
The trend poses a challenge for the UAE’s broader full-service restaurant market, which was estimated to be worth $9.5 billion last year by market researcher Mordor Intelligence. Before the war started, it was estimated that it would grow by 20 percent this year, reaching 11.3 billion dollars. But war can change the equation. The Gulf witnessed Iranian missile and drone attacks for several weeks after the United States and Israel launched an attack on Iran in late February. Although the ceasefire came into force on April 8, the Strait of Hormuz, which provides the only sea access to the UAE, which imports more than 80% of its food, remains effectively closed.
The war has reduced regional tourist arrivals, hit the number of shoppers at luxury malls, increased luxury car sales and disrupted restaurants, a pillar of Dubai’s booming entertainment and tourism industry carefully built on its image of glamor and security.
A survey by Juniper Strategy and the Global Restaurant Investment Forum found that UAE food service operators reported experiencing an average 27% drop in demand levels compared to a year ago. Supplier cost increases averaged 13%, according to the report, which consulted 30 industry leaders operating nearly 400 restaurants between April 1 and 8.
He added that tourist-exposed destinations and business districts are under the greatest pressure, while residential facilities are showing greater resilience and, in some cases, growth.
Dubai’s Department of Economy and Tourism said in a statement that some operators were navigating “a period of disruption to foot traffic” and finding creative ways to respond.
“Restaurants, chefs and platforms across the city are adapting through new formats, targeted offers and community-led initiatives,” he said in a document sent to Reuters.
The UAE Ministry of Economy and Tourism did not respond to a request for comment.
CHEFS RESPOND TO LOCALLY SOURCED INGREDIENTS
Kelvin Cheung, chef at fusion restaurant Jun’s Dubai, told Reuters that finding alternative ways to transport hard-to-source perishable ingredients, such as Norwegian scallops or some Japanese seafood, had become a costly challenge.
“Your only option was then to fly air freight, which would increase our costs by about thirty, thirty-five percent,” he said, adding he had turned to using local fish on his menu.
Air freight rates on some routes increased by as much as 70 percent as the war blocked oil shipments from the Gulf and increased jet fuel costs. Flights to and from the UAE are slowly returning to normal.
“Tourism has taken a big hit,” Cheung said. “The huge influx of tourists providing extra economic and spending boost across all sectors is what we are currently missing.”
Cheung offered a six-course menu for 225 dirhams ($61) using locally sourced ingredients. The restaurant retained its entire staff. Other venues are preparing to offer discounted fixed-price meals for Restaurant Week in May.
Food writer Courtney Brandt, who has been in the region since 2007, said the conflict has further sharpened existing challenges such as high fixed costs, dependence on tourism and supply chain exposure, adding that the market was already saturated before the war.
“We needed to make a correction,” he said, adding that international brands, which often have celebrity chefs and larger budgets, may be better off, but rising costs despite local support have been a challenge.
“Tough decisions need to be made for businesses to survive.”
Some fine dining venues on Dubai’s iconic man-made, palm-shaped island, including the luxury Atlantis hotels, have been temporarily closed for renovations, citing war as the reason. Other restaurants opened in early April, including Italian restaurant Siena in Dubai and Isabel Mayfair in Abu Dhabi, the UAE capital.
Chefs Lash and Cheung expect the market to recover.
“In the last few weeks, especially with the ceasefire and the resumption of schools, we have started to see a positive improvement in business and the general movement in the city. There is a feeling that normalcy is slowly returning,” Cheung said.
($1 = 3.6730 UAE dirhams)
