Latest news with #StefanoMihalitisianos
Hi Dubai
11-02-2025
- Business
- Hi Dubai
Dubai Dining Costs Surpass Paris, London, and Tokyo: What's Driving the Price Surge?
The cost of dining out in Dubai has surged due to a combination of global economic factors, including rising commercial rents and supply chain disruptions, industry leaders revealed on Monday. Stefano Mihalitisianos, Managing Director for the Middle East at Tashas Group, attributed the price hikes to the broader political and economic climate, particularly the impacts of the Ukraine-Russia war. "The cost of goods has gone up globally, and rents have increased significantly in recent years," he noted during a panel discussion organized by the UAE Restaurant Group at the Dubai Chamber. A recent study by UK-based Holidu ranked Dubai 98th among 150 cities for dining costs. Inexpensive meals in the city average 10 euros (Dh38), while mid-range meals for two cost around 62 euros (Dh197). Surprisingly, Dubai outperforms cities like Paris, London, and Tokyo in terms of dining affordability. Meanwhile, Abu Dhabi ranked 75th globally, with an inexpensive meal costing 6.2 euros (Dh23.5) and a mid-range meal priced at 49.5 euros (Dh187). Despite the price increases, Mihalitisianos emphasized that restaurants are not exploiting the situation. 'Restaurants are navigating through rising labor costs, rents, and inflation while staying competitive,' he explained. Naveed Nasir, founder of Khadak restaurant chain, urged transparency in pricing, stressing that compromising on quality for short-term gains can harm a business in the long run. Maha Al Gargawi, Vice President of Business Advocacy at Dubai Chamber, highlighted the growth potential in the restaurant sector, noting that the UAE's food services industry is projected to surpass $23.2 billion this year and reach $52.7 billion by 2030. News Source: Khaleej Times
Khaleej Times
11-02-2025
- Business
- Khaleej Times
Dubai: Why is dining out in the city more expensive than Paris, London, Tokyo?
The cost of dining out at restaurants has increased due to multiple factors including supply chain disruption and rising commercial rents among others, industry executives said on Monday. Stefano Mihalitisianos, managing director for Middle East, Tashas Group, said the pricing is a reflection of inputs that the world sees in terms of the political and economic situation. Commercial rents have increased substantially in the past few years while the cost of goods has also gone up globally due to geopolitical tensions around the world, especially after the Ukraine-Russia war. Stay up to date with the latest news. Follow KT on WhatsApp Channels. Dubai has been ranked 98th among 150 cities for dining out by the UK-based Holidu with inexpensive meals costing nearly 10 euros (Dh38) and mid-range meals costing nearly 62 euros (Dh197). The city has been ranked higher than Paris, London, Hong Kong, Singapore, Tokyo and other countries by Holidu. The study is based on comparative costs of imported beer (0.33-litre draught), cappuccino (regular), wine (mid-range), bread (500g) and cheese (1kg). In the meal category, it analysed inexpensive restaurants. For mid-range meals, it measures the cost of food for 2 people in a mid-range restaurant containing a three-course meal. In Abu Dhabi, an inexpensive meal costs 6.2 euros (Dh23.5) and a mid-range meal costs 49.5 euros (Dh187), ranking the emirate 75th globally. Not taking undue advantage Mihalitisianos stressed that restaurants and F&B outlets are not taking advantage of undue situations. 'There is very little we are doing in terms of taking advantage and doing a lot more to stay competitive. The price of what you see is a factor of many inputs that include labour cost, rising rents, supply chain impact and rising inflation. The cost of goods is spiralling and rents are going up. For the most part, restaurants are not taking advantage of consumers and trying to navigate the storm,' Mihalitisianos said during a panel discussion at the forum organized by the UAE Restaurant Group at the Dubai Chamber office on Monday. Naveed Nasir, founder of Indian restaurant chain Khadak, said restaurants should be honest and transparent with customers when it comes to prices. He warned that restaurants may get a short-term boost by compromising on quality and services, but it is a 'death' in the long run for the company. Maha Al Gargawi, vice president of Business Advocacy at Dubai Chamber, said the restaurant industry is continuing to evolve and there are a lot of exciting opportunities to scale and grow. 'We are evolving to position Dubai as one of the global dining destinations on the world map. The UAE's food services sector is forecast to surpass $23.2 billion this year and is expected to reach around $52.7 billion by 2030. These numbers show impressive growth in the restaurant sector,' she said. More than 4,050 restaurants registered as active members with the Dubai Chamber last year, an increase of over 1,000 new members.
