Restaurants across the UAE have implemented significant price adjustments for iftar buffets this Ramadan, with rates increasing by up to 30% compared to previous years. This surge comes in response to escalating ingredient costs, higher rental prices, and increased demand driven by population growth and the pleasant weather conditions during this year’s holy month.
Rising Costs Affect Pricing Strategies
According to industry experts, four and five-star hotel restaurants are leading this price adjustment trend, while standalone establishments are attempting to absorb some of the increased operational expenses.
Somya Jain, CEO of Chatori Gali Restaurants & Catering, notes that iftar buffet rates have risen by approximately 10-15% in 2025 compared to last year.
“From rents being at an all-time high to oil prices increasing by 15% to vegetable prices increasing by 7%, some burden eventually has to be transferred to the customer,” Jain explained.
The pricing adjustments reflect broader economic pressures facing the food and beverage sector in the UAE, with businesses carefully considering how to maintain profitability whilst still offering value to customers.
Weather Conditions Drive Demand
The timing of Ramadan during the cooler months has significantly influenced dining patterns, creating additional demand for restaurant services. Eti Bhasin, executive director for Majestic Hotels, The Permit Room, and Dhaba Lane, highlights that this seasonal advantage has encouraged more people to dine out rather than order in.
“F&B outlets – especially those with an outdoor venue – [are expected] to have at least a 50% increase in their revenues this Ramadan which coincides with the last bit of winter in the UAE,” Bhasin stated.
This favourable weather has prompted many establishments to capitalise on the anticipated surge in foot traffic before summer temperatures arrive, with restaurants adjusting their pricing accordingly.
Hotels vs Standalone Restaurants
A clear distinction can be observed between how hotel restaurants and independent establishments are approaching these price increases.
“Four and five-star hotel restaurants are more at liberty to increase prices, and have done so this year,” Jain remarked, adding that standalone restaurants face greater challenges when attempting to pass increased costs onto customers.
Bhasin confirmed this trend, noting that “the majority of 4 and 5-star hotels with an outdoor space have surged their rates during the holy month of Ramadan compared to 1, 2 and 3-star hotels. This is due to the demand for fancy spreads and value for money from customers.”
For independent restaurants, the balancing act is particularly difficult, with many choosing to accept reduced profit margins rather than risk alienating price-sensitive customers.
Enhanced Dining Experiences
Despite the price increases, restaurants are focused on delivering exceptional value through improved dining experiences. Amit Nayak, vice chairman of UAE Restaurants Group (UAERG), emphasised that the industry continues to prioritise quality offerings.
“The industry continues to focus on value-driven offerings, making certain that guests enjoy a memorable and high-quality iftar experience,” Nayak said.
According to Nayak, several factors are driving iftar pricing strategies, including investments in premium ingredients, specialty dishes featuring regional and international flavours, and efforts to create immersive dining atmospheres for families and friends.
Additionally, he noted that global shifts in food procurement and logistics costs continue to influence pricing strategies, alongside a growing emphasis on responsibly sourced ingredients and environmentally conscious dining experiences.
Looking Forward
As Ramadan progresses, industry experts anticipate that the price adjustments will become more pronounced, particularly from the second week of the holy month. With restaurants and hotels throughout the UAE offering special iftar and suhoor buffets to cater to Muslim customers, corporate groups, individuals, and families are continuing to book these venues for gatherings despite the increased costs.
The current market dynamics reflect the F&B industry‘s ongoing efforts to balance customer expectations with operational realities in an increasingly competitive landscape.
This article was written based on insights from UAE restaurant industry executives and reflects the current market situation during Ramadan 2025.
JobXDubai 
Leave a comment