Staff Report
If you are in UAE, you must be looking for dining out that has become more expensive in recent years. Both residents and visitors have been claiming of expensive dining.
There have been several factors that contributed to rising cost of dining out in UAE.
Several factors have contributed to this trend of rising cost of dining out in UAE. These factors have been attributed to supply chain disruptions along with other elements like rising commercial rents, increased labor costs, and global economic conditions.
Supply Chain Disruptions
The UAE has limited domestic agriculture production and has been importing a significant portion of its food to meet rising demand.
The COVID-19 pandemic and geopolitical tensions, had also led to disrupting supply chains that led to higher costs of imported goods. So, these disruptions have become a key factors for rising cost of dining out in restaurants.
Rising Commercial Rents
The UAE has witnessed a boom in real estate sector that resulted in substantial increases in commercial rents. Restaurants have been facing higher rental expenses. So, they have passed on these expenses to the customers who come to dine out in UAE.
Increased Labor Costs
It has become a challenge in UAE to retain skilled staff in the hospitality sector. These increased labor costs have become a challenge to run restaurants and became one of key reasons of higher menu pricing.
Global Economic Conditions
The dip in food production worldwide and rising demand of food items have pushed food prices. Additionally, the COVID-19 pandemic and other geopolitical situations have also contributed to higher costs.
Impact on Dining Costs in the UAE
These are a few factors that have led to hike in in dining costs across the UAE. In Dubai, the cost of an inexpensive meal amounts to €10 (around AED 38), while a mid-range three-course meal for two amounts to around €62 (around AED 197). This is higher pricing compared to cities like Paris, London, and Tokyo.
In Abu Dhabi, the cost of an inexpensive meal is around €6.2 (AED 23.5), and a mid-range meal amounts to about €49.5 (AED 187).It ranks the emirate 75th globally in terms of dining costs.
Strategies for Diners
Despite rising costs, the residents and visitors can still manage their dining expenses:
- Explore Diverse Dining Options: You can explore various options of dining out in the UAE.
- Opt for Local and Street Food: Try to find out option of local and street food at lower expenses.
- Take Advantage of Dining Deals: You can also avail of dining deals in UAE during weekdays or off-peak hours.
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