Ramadan in UAE: Iftar buffet rates surge up to 30% due to weather, rent hike

Khaleej Times

02-03-2025

Restaurants in the UAE have increased iftar buffet rates by up to 30 per cent due to rising costs of ingredients, rents and growing demand from the rising population and more people opting for dining out due to pleasant weather conditions during Ramadan this year.
F&B industry executives say that four and five-star hotel restaurants have led the increase in the iftar buffet rates this Ramadan while standalone outlets tried to absorb some cost as well.
Restaurants across the UAE roll out special dishes for iftar and suhoor buffet during the fasting month to cater to the demand from Muslims. Corporates, individuals and families book restaurants and Ramadan tents for gatherings for iftar and suhoor.
'This year, iftar buffets across the UAE have seen slight pricing adjustments, balancing enhanced guest experiences with evolving market dynamics. The industry continues to focus on value-driven offerings, ensuring that guests enjoy a memorable and high-quality iftar experience,' said Amit Nayak, vice chairman of UAE Restaurants Group (UAERG).
Eti Bhasin, executive director for Majestic Hotels, The Permit Room, and Dhaba Lane, said an average 30 per cent increase can be expected in rates overall across the industry starting from the second week of Ramadan.
She expects F&B outlets – especially those with an outdoor venue – to have at least a 50 per cent increase in their revenues this Ramadan which coincides with the last bit of winter in the UAE.
According to Somya Jain, CEO of Chatori Gali Restaurants & Catering, the iftar buffet rates increased by about 10-15 per cent in 2025 compared to last year.
Rising costs
Jain attributed the constant rise in commodity products and rising rents to the increase in iftar buffet rates.
'From rents being at an all-time high to oil prices increasing by 15 per cent to vegetable prices increasing by 7 per cent, some burden eventually has to be transferred to the customer. F&Bs are not usually able to increase menu prices as soon as raw material prices go up, but are now taking a step in that direction,' she added.
Eti Bhasin said the last of winter months again is a primary reason, unlike summer months where it was more of a norm to order online as compared to dining out at the outlet.
'As a result, F&B outlets are taking advantage of the expected surge in dining out before the onset of summer. Rising costs in ingredients have indeed been a reason, however, that cannot be limited to only Ramadan, but all year round. Rental increase is a phenomenon affecting all sectors including retail and hence a 10 per cent increase has been observed in all F&B outlets. We have plans at Dhaba Lane to increase rates location-wise considering this aspect,' she added.
According to Amit Nayak, iftar pricing is driven by a blend of market demand and operational enhancements including many establishments investing in high-quality ingredients and speciality dishes that celebrate regional and international flavours, creating immersive and engaging atmospheres for families and friends to gather; global shifts in food procurement and logistics costs continue to shape pricing strategies, and a growing emphasis on responsibly sourced ingredients and eco-conscious dining experiences.
Standalone vs hotel restaurants
Somya Jain added that 4 and 5-star hotel restaurants 'are more at liberty to increase prices, and have done so this year.'
She noted that it becomes difficult to completely transfer the increased costs to the customers for standalone restaurants because it is not received well in the market. 'While we do increase prices slightly, ultimately, we end up taking a hit in profit margins.'
Eti Bhasin, noted 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.'