James Robson, co-owner of Fallow in central London, has signed a deal to open a restaurant outpost in the Gulf, citing what he calls a "tax tsunami" in the UK as a key driver.
Fallow, located in St James's Market, serves around 1,000 customers daily and is described as one of the capital's most sought-after restaurants. Robson told The Guardian that Gulf countries actively support business setup, making them attractive alternatives to the UK.
Beyond tax considerations, Robson pointed to workforce differences. He claimed that east Asia offers "a better work ethic" than the UK, suggesting labour dynamics factor into expansion decisions alongside financial incentives.
The move reflects a broader pattern among London's high-end restaurant sector. Multiple top-tier establishments are now pursuing Gulf expansion, with the combination of lower tax burdens and operational advantages driving the strategy.
The UK hospitality sector has faced mounting cost pressures in recent years, including National Insurance contributions and rising employment expenses. Gulf states, particularly Dubai, have positioned themselves as low-tax jurisdictions with streamlined business registration processes designed to attract international operators.
Robson's comments frame the expansion not as a retreat from London but as a pragmatic response to the UK's financial and regulatory environment. The restaurateur's characterisation of UK taxation as a "tsunami" reflects frustration among some business owners over recent policy changes affecting employment costs.
The timing of these expansions coincides with broader economic uncertainty in the UK hospitality sector, where wage pressures, energy costs and tax increases have compressed margins across the industry. Gulf expansion offers higher-margin operations and, according to Robson's account, a workforce less resistant to shift patterns and conditions.
No information was provided about staffing levels, investment amounts or timelines for the Gulf opening.