The Harsh Truth About Food Delivery in Dubai: Top 3 Reasons Why Restaurants Are Struggling

The Truth about Food Delivery in UAE

Dubai’s restaurant scene is booming — but not every business is celebrating. Behind the growing food delivery trend lies a much tougher reality for restaurant owners. While platforms like Talabat, Deliveroo, and Careem offer convenience and reach, they also introduce harsh terms, intense competition, and a constant battle to stay visible.

Let’s explore the main challenges restaurants face when building their delivery presence in Dubai and the UAE.

Food Delivery Challenges for Restaurants in the UAE

The Truth about Food Delivery in UAE

High Commission Fees Are Eating Into Profits

Partnering with third-party delivery platforms comes at a steep price. Commission fees range from 25% to 35% per order — a figure that can leave little to no profit for restaurants, especially when customers use discounts.

"A customer orders for AED 100 with a 40% discount (AED 60 paid). The platform takes 35% commission (AED 21). The restaurant ends up with just AED 25–30 — barely enough to cover the cost of food, staff, rent, and packaging."

— Viral Reddit Post

Even before factoring in rent and labor, many small and medium-sized restaurants are simply operating at a loss for every order delivered through aggregators.

Competition Is Fierce and Visibility Is Expensive

With over 13,000 F&B outlets in Dubai and more than 250,000 daily food deliveries across the UAE, the delivery space is crowded. Standing out on food apps isn’t easy.

Unless restaurants pay extra for “featured listings” or offer big discounts, they’re buried among hundreds of competitors. That means restaurants are often forced into a pay-to-play model:

Discounts = customer visibility
Premium placement = platform fees
Loyalty = extremely hard to build

And for newcomers or independent outlets, the visibility struggle is even more intense.

Third-Party Reliance vs. Control

Restaurants that rely solely on third-party platforms lose control over the customer experience — from packaging and delivery speed to post-order communication. Even worse, the platforms own the customer data, making it harder to build long-term loyalty or retarget diners.

To reclaim control, some businesses are shifting toward hybrid delivery models:

Accepting direct orders via their website or WhatsApp
Using third-party logistics for the last-mile delivery
Creating loyalty programs outside aggregator platforms

But this takes tech, time, and effort — something not every restaurant can afford.

Restaurants Are Fighting Back

The pressure has reached a tipping point. During and after the pandemic, many UAE restaurant owners called on delivery platforms to reduce their commission fees to help the industry survive. In some cases, temporary support was offered, but permanent solutions remain elusive.

Some operators have even left the aggregators altogether, opting for “off-the-grid” operations, pop-ups, and direct-to-consumer strategies to avoid the unsustainable economics of the delivery apps.

Ready to Take Control of Your Food Delivery Strategy?

The challenges of Dubai’s delivery market are real—but they’re not insurmountable. With the right strategy, you can reduce reliance on aggregators, improve margins, and build a loyal customer base without sacrificing visibility.

At Zeora Hospitality, we help restaurants:

Cut commission fees by driving direct orders through your own channels
Boost profitability with smarter delivery and operational workflows
Stand out in a crowded market with data-driven marketing and branding

Book a free consultation with our team to explore how you can reclaim control and grow sustainably:

Conclusion: Food Delivery in UAE Isn't the Easy Win It Seems

While food delivery is now an essential revenue stream, it’s not a golden ticket — especially not in Dubai’s hyper-competitive market. High commissions, limited control, and the struggle for visibility create a perfect storm for restaurant operators.

For delivery to be profitable, restaurants must:

Streamline operations
Control margins
Balance aggregator use with direct ordering strategies
And most importantly: stand out with a clear value proposition

The future of delivery in Dubai will favor those who adapt — not just those who sign up and wait for orders.

For more ideas and insights to grow and improve your restaurant operations, click here.

Zeora Hospitality

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