Dubai chef Shaw Lash at the Mexican restaurant Lila Molino flies in her avocados and tomatillos, small, tart green fruits native to Central America that are a staple of Mexican cuisine and key for her colorful and spicy dishes.
Now the two-month-old war in Iran is making such ingredients harder to source and pricier, Lash and other chefs said, as the Gulf grapples with the closure of the Strait of Hormuz Sea route and spiking jet fuel prices push up air freight costs.
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Supply Pressures Force Dubai Chef to Scale Back Operations
Lash has scaled back production, cut her payroll, and is buying ingredients in smaller quantities for now—measures she expects to be temporary. She’s focusing on her make-at-home fajita kits, which have been a hit, and her grocery line.
“The reality is cargo has gotten more expensive, gas prices have gone up, and the Strait of Hormuz is still blocked,” Lash told Reuters at her restaurant in Dubai’s trendy Alserkal Avenue art and culture district.
“The situation is really creating a problem for us as far as our supply.”
Chefs in the glitzy city are adapting their menus, with some turning to more regional or readily available foods, or offering fewer dishes. Dubai authorities have rolled out broader economic support measures, relief on fees, and campaigns to get people dining.
War Disruptions Threaten UAE’s $9.5 Billion Restaurant Boom
The trend is a challenge for the UAE’s wider full-service restaurant market estimated to be worth $9.5 billion last year by market researcher Mordor Intelligence. Before the war started, it predicted 20% growth to $11.3 billion this year.
However, the war could alter the situation. After the U.S. and Israel launched strikes on Iran in late February, the Gulf saw several weeks of Iranian missile and drone attacks. Although a ceasefire came into effect on April 8, the Strait of Hormuz, the only sea access to the UAE, which imports more than 80% of its food for consumption, remains effectively closed.
The war has cut regional tourist arrivals, hit shopper numbers in luxury malls, high-end car sales, and disrupted restaurants, a pillar of Dubai’s booming leisure and tourism sector carefully built on an image of grandeur and safety.
Tourist hubs hit hardest as rising costs squeeze UAE restaurants
A survey by Juniper Strategy and the Global Restaurant Investment Forum found that UAE foodservice operators reported they were experiencing an average 27% drop in demand levels versus a year ago. Supplier cost increases averaged 13%, according to the report, which consulted 30 industry leaders between April 1 and 8, who operate some 400 restaurants.
It added that tourist-exposed locations and business districts were under the greatest pressure while residential establishments showed greater resilience and, in some cases, growth.
The Dubai Department of Economy and Tourism said in a statement that some operators were navigating a “period of disrupted footfall” and were finding creative ways to respond.
“Across the city, restaurants, chefs, and platforms are adapting through new formats, targeted offers, and community-led initiatives,” it said in a document sent to Reuters.
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