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Dubai: Some restaurants expect costs to rise as second phase of single-use plastic ban begins

One eatery says that making the switch from plastic will drive up costs, some of which they may have to pass on to customers

Published: Thu 2 Jan 2025, 6:19 PM

Updated: Fri 3 Jan 2025, 4:01 PM

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Eateries and restaurants in Dubai are expecting their costs to increase after the soft implementation of a ban on single-use plastic products began on January 1, 2025. This is the second-phase of an executive resolution to completely ban single-use items in Dubai and it is expected to be fully implemented by June 1, 2025.

“We are waiting for clarity from the municipality about how it will be rolled out but in the meantime we have begun making changes,” said Shyjil Hussain, owner of Zam Zam Mandi group of restaurants. “We have swapped out our plastic table covers for paper covers on tables. For the majlis seating area, this is not possible as we have carpets underneath. We are still exploring what alternatives can use for it.”

He added that he is expecting costs to go up. “The table covers made of paper costs double the amount of the plastic ones,” he said. “This will definitely drive up our operational costs, some of which we may have to pass on to customers.”

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The second phase of the ban covers styrofoam food containers as well as plastic straws, stirrers, table covers and cotton swabs. A list of alternatives have including bamboo table covers, wooden cotton swabs and glass straws are listed on the Dubai Municipality website.

Some exemptions to this rule are plastic straws that come packaged with drink packages, Styrofoam trays for packaged meat products and medical equipments.

Packaging manufacturers Hotpack Global have switched “96 percent” of their product range to be “recyclable, biodegradable or compostable” to meet the demand. “We have a wide range of eco-alternatives that include paper, board, plant, biodegradable, and compostable alternatives,” said Dr Mike Cheetham, Global Business Director & Head of Sustainability at Hotpack Global.

“There are also several exciting new biopolymers and products made from recycled materials that we plan to propose as suitable low carbon alternatives.”

Switching to alternatives

Several businesses have already begun switching to alternatives. “We have completely removed plastic table covers, and use paper or recyclable plastic,” said Somya Jain, CEO of Chatori Gali. “We also use non-woven, bio-degradable carry bags which can be reused over 20 times.”

Other business owners said they were making changes. “We are looking to switch to wooden cutlery from plastic ones,” said Eti Bhasin, Executive Director of Dhaba Lane restaurants. “However, there is a difference of at least 7 per cent in terms of costing.”

Fathima Arzoo, managing director of Lallumma’s restaurant said that it was challenging to find alternative solutions. “There is limited availability on the market and this can be challenging sometimes,” she said. “The alternatives are significantly costlier than the current options so we are looking at other procurement strategies.”

Somya added that it will impact the industry. “Restaurants already have very high fixed costs and small margins,” she said. “When cost of raw materials increase, restaurants are seldom able to transfer it to the clients in the form of increased menu prices. So usually, their margins shrink further.”

Higher demand soon

According to Eti, an increased adoption of alternatives will drive down their cost. “If it becomes compulsory all across, we will see a mass adoption that will definitely impact the overall cost,” he said.

Shyjil agreed. “When there is a higher demand, then manufacturers can mass produce,” he said. “This will drive down their costs and everyone will benefit equally. So I think by the time the ban goes into effect completely, the prices of alternatives will also go down.”

By January 1, 2026 single-use plastic cups, lids, containers, cutlery and plates will also be banned.

Dr Mike added that Hotpack was trying to “support existing and new clients” with “high quality products at competitive prices” so that the switch could be seamless.

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