Dubai Eatery Reduces Alcohol Prices in Response to New Regulations

  • Jan. 23, 2023
  • FMCG HORECA BUSINESS
Dubai Eatery Reduces Alcohol Prices in Response to New Regulations

LPM Restaurant & Bar, previously known as La Petite Maison in Dubai and situated in DIFC, which is renowned for its French-Mediterranean cuisine, has announced that its beverage pricing would be reduced. This declaration comes in reaction to the UAE's new alcohol regulations, which reduced the 30% tax on alcohol purchases.

The revised pricing are anticipated to take effect on Monday, January 23.

Champagne bottles, wine glasses, wine bottles, and cocktails will be 10 to 15 percent less expensive at the restaurant.

New alcohol costs

Cocktails - Commencing at AED49

A glass of wine begins at AED44, champagne at AED105, and wine at AED220.

"This effort is not a 30% decrease in expenses for operators, but rather the elimination of a 30% tax on landing fees in Dubai." This offers a 23 percent real cost savings for operators. Now, if operators choose to keep their margins in cash value, which sounds reasonable, it would only result in a 5% decrease in selling price. This may have been misconstrued when the announcement was made, but it is essential to clarify so that customers do not have the incorrect expectations, according to Nicolas Budzynski, Global Operations Director at LPM Restaurant & Bar.

"Being diners ourselves, we would be delighted to see more affordable pricing in Dubai, in line with those of other foreign marketplaces. This is one of the reasons why LPM has been so steady and well-liked over the last 12 years: we've always sought to provide our customers the greatest items at the most affordable prices. This is why we decided to go all in and move swiftly. Guests will be able to order an additional glass or bottle, and everyone will benefit from the price decrease," he said.

This month, the restaurant announced its permanent transition to a four-day workweek.

LPM Restaurant & Bar, previously known as La Petite Maison, has announced that waiters, chefs, and other staff workers at both of its UAE locations would work longer hours on two days and have three days off each week.

Overall, employees will work significantly less hours per week while maintaining their current pay.