PSA: The Harsh Reality of Running a Restaurant in Dubai/UAE
Hi UAE Community,
I’m not sure if this is the right place for this, but I need to vent and share a PSA that I think everyone should know. I’ve been living in Dubai for over 20 years, and unfortunately, I’ve seen things change drastically over the last five years. My family and I have been running a restaurant here for 12 years, but we’re now at a tipping point where we might have to shut our doors for good. And from what I hear, we’re not alone in this struggle.
The biggest challenge? The way restaurant businesses are being exploited by food delivery aggregators and ordering platforms. These platforms charge us up to 35% commission on the gross bill amount and an additional fee of up to 7 AED per menu view (cost-per-click). These costs are unsustainable, and it’s only a matter of time before many restaurants are forced to shut down.
Here’s an example to put things into perspective: If you order something from a restaurant offering a 40% discount through one of these platforms, let’s say your total bill is 100 AED before the discount. After the discount, you pay 60 AED, plus the delivery charge. But here’s the kicker: the aggregator takes 35% of the original 100 AED bill, meaning the restaurant is left with just 25 AED. That’s not even enough to cover basic costs, let alone turn a profit.
The market has become so competitive that we’re forced to use these platforms just to stay visible and make some sales, but it’s a losing game. Negotiating with these multinational companies hasn’t worked—they’re focused on making as much money as possible, no matter the impact on small businesses.
So, here’s my plea: if you can, please support small, independent restaurants by ordering directly through their websites. Every order that avoids these platforms helps us stay afloat a little longer and continue to support our teams.
I’m sorry for the long rant, but I feel like a lot of people don’t know what’s happening behind the scenes. If you value the diversity of Dubai’s food scene, your support can make a real difference.
Thank you for reading & sharing