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How to Open a Restaurant in Dubai or UAE (Updated 2023 Guide)

• April 7, 2023

Although this guide is centered on how to open a restaurant in Dubai, you can, however, apply some of the core concepts to setting up your establishment in other parts of the world.

You see, the rules and regulations on how to open a restaurant vary in terms of demographics, but the basic idea and strategies almost remain the same. In fact, take it as a double-quoted “almost” because this guide will not only help you to figure out the best way on how to open a restaurant, but you might as well learn a thing or two from it.

The question is, why are we recommending Dubai, Abu Dhabi, and other areas for opening a restaurant, and not some other fancy-schmancy place?

As it turns out, each year, Dubai sprawls with millions of tourists from all over the world. To be more precise, the tourist count is up north of 4.7 million folks according to ‘Arabian Business’ insiders. In other words, beyond the glitz and glam, Dubai is a go-to hub for people who love to take a dab into the luxuries of the modern world.

For business folks, that translates to 4.7 million opportunities to make a dime. If done correctly, you could be making a whopping percentage on your yearly revenue. That’s all the more reason to set up shop in Dubai, UAE, Abu Dhabi, and other vicinities.

However, as much as these lucrative business opportunities are waiting to be explored, there’s a sense of high cut-throat competition. Dubai, like, many other famous places aren’t cheap for customers.

There’s a specific bracket where you need to line up the shots to see how your restaurant business pans out.

Secondly, without a proper plan on how to open a restaurant in Dubai, your chances are akin to last over a few months. Top it all off with a side of looming healthcare institute policies in the aftermath of the COVID-19 pandemic, the business strategy on opening a restaurant in Dubai has to be laser-sharp and personalized to your upcoming startup.

Here’s how you should get started. Read on…

Dubai & Abu Dhabi Restaurant Startup Mistakes to Avoid

If you don’t have time to skim through the entire post, here’s what you need to know about ‘how to open a restaurant in Dubai’ on the get-go.

a.      Get Your Restaurant License In Dubai on Top Priority:

Before incepting, it is extremely important to get your restaurant license in Dubai right away!

This part is detailed later down in this post, but for reference, you should know that the food code is strictly applicable to any type of food business establishment in Dubai, Abu Dhabi, and the UAE.

If you are looking to start a food business in Dubai under the following categories, it is imperative to get the appropriate business license for it.

• Restaurants
• Food Factories
• Food Processing
• Food Catering Services
• Food Packing

All of the aforementioned niches belong to different categories of food businesses in Dubai. However, to obtain a restaurant license in Dubai, you need to get a trade license from the Department of Tourism and Commerce Marketing in Dubai , and a Food License from the Food Safety Department in Dubai.

Read our guide below to find out more details about how to get a restaurant license in Dubai and the restaurant license cost in Abu Dhabi. It’ll help you a lot.

b.      Have a Stellar Restaurant Business Plan on How to Open a Business In Dubai:

Whether you are looking to start a restaurant business in Dubai, or anywhere in the UAE, a food business plan is fundamentally essential. It elaborates on structural content, such as the location for your restaurant in Dubai, marketing expenses, remote food delivery through Dubai food ordering apps, and various other operations.

Since COVID, many food startups have had to rework their business plan to include new models that would help the business to scale. It is wise to adapt to new market trends and reshape your Dubai restaurant’s launch strategy accordingly.

c.      Your Dubai Restaurant Will Not Start Earning Profit Right Away!

Profits are good, but having the notion that your Dubai restaurant will start turning over “easy money” is a false belief.

Our best advice to start a long-lasting restaurant business in Dubai is to set aside funds for scalability purposes. Since many new food business startups are focused on investing too much in ambiance and structure and other things related to the restaurant, they have all the chips bargained for making a profit with your restaurant starting from day 1.

Aspiring restaurateurs are meticulous. Especially, for new food business owners in Dubai, the cost of doing business is pretty high. Rentals break through the roof if the establishment is set up in a posh location. Likewise, raw material cost, utility bills, and staff member payroll are some of the factors that make it harder to break even.

Start small; take baby steps, and focus on building your restaurant’s credibility in Dubai. We can guarantee that profits will eventually start rolling in.

Do You Have a Business Plan on How to Open a Restaurant in Dubai?

Like any other business, Dubai also requires a few requirements that have to be met. However, before we delve into that, the most important thing is having a business plan on how to open a restaurant.

Business plans are important because they roughly lay down the groundwork as far as how everything is supposed to go.

Besides providing an expense estimate, such plans are effective as they highlight the pros and cons of how to open a restaurant in a specific location. For instance, some places in Dubai attract relatively more customers, but the rentals are equally high. The prime hotspots for high-stake restaurant customers with an equally high percentage of walk-ins are for these locations in Dubai:

• Dubai Creek
• The Mall of Emirates
• Emirates Hills

According to ‘The Restaurant Times’ online magazine, an ideal location for a restaurant is an often ignored fact that is not accounted for when new startup owners are working on how to open a restaurant in Dubai or any other place for that matter.

Now, speaking of having a rock-solid business plan to start with, we wrote an extensive guide on How to Write a Restaurant Food Business Plan that Actually Works .

The main takeaway from that post is highlighted below:

• Identifying your name-brand restaurant’s available opportunities and weaknesses
• Competitor analysis on how to open a restaurant in Abu Dhabi and Dubai before getting started
• The big Do’s and Don’ts of startup restaurant servicing protocols
• Running and managing marketing campaigns effectively for any restaurant operating at a small level
• Creating your very first menu
• Surveying the market in terms of how other restaurants in the Middle East are operating amidst COVID-19

… so on and so forth. The above highlights are just the main focus areas that help to alleviate pain points for any potential business in Dubai, especially if it’s food-related.

However, we need to divert your attention to adapting healthcare policies in the wake of the COVID-19 pandemic situation.

That sounds like a fancy idea, and ideally, it’s pretty much the next logical move as soon as the business plan for the restaurant is created.

Quite naturally, since it’s a startup, business owners are strapped for cash. They need all the extra help to get started. That’s where angel investors come in. Speaking of that, yes, there’s a detailed guide on whether you should involve an angel investor from the get-go during a restaurant inception frenzy.

While angel investors sound like a great idea, to begin with, many potential startup business owners considering how to open a restaurant fall for the honey trap. These individuals don’t pay a high degree of attention to the actual agreement between the investor/stakeholder and the restaurant ownership party.

Here’s what you need to know about involving angel investors in your food business startup:

• Pay attention to the APR percentages in your agreement with the investor:

APR otherwise means an annual percentage rate that accounts for additional money off of profits over any fiscal period. Since angel investors expect high returns, food business owners in Dubai are often crushed by heavy payments to the stakeholder party.

The business buckles down under such strenuous agreements and both parties stand to a halt without any indication of moving forward. If you think that this was the worst-case scenario on how to open a restaurant in Dubai or Abu Dhabi by partnering up with an investor, here’s the fun part. Read on…

• Always Detail Loss Equity for Both Partners:

Investors care about how their money should be protected in case the restaurant business plan goes awry within a few months. That’s why, they tend to sneak in clauses that state down that in case of business failure, the investor gets to have all his money back without any share in the loss percentages on the business owners’ part.

In such instance, you’d have to return all the principal amount despite suffering a loss on your brand-new food restaurant business in Dubai, the Middle East, or any other part of the world.

Therefore, consult with a lawyer and have him go through the draft policies on how to start a restaurant that you either made yourself or asked someone to do it. Either way, any level of expert insight is better before signing off right away.

Food Trading License in Dubai

Here’s the fun part.

As soon as you have finalized your business plan on how to open a restaurant, it’s time to shift gears. The next step is to obtain a license from competent authorities in Dubai.

Speaking of which, there are two main categories of licenses that you need to go for. Procure them both on priority, and everything’s hunky-dory from the UAE government’s approval side. Well, at least for now, it is.

• Trade License for Setting Up ‘Shop’ in Dubai
• Food Trading License in Dubai for Restaurants

Both licenses incur a nominal fee that is mandated by the UAE government.

For a food trading license in Dubai regarding your next step on how to open a restaurant in Dubai, contact the authorities from the ‘ Department of Tourism and Commerce Marketing ’. The pre-approval application from your side clearly needs to mention the kind of restaurant you’d be founding in Dubai.

As far as cost goes, a Trade license can be obtained for anywhere between AED 40,000 to AED 30,000 . This cost also factors in the type of restaurant that you’re going to own and operate within the next few months.

Fun Fact: Greasing a few palms will help you to get a food trading license for opening a restaurant in Dubai, Abu Dhabi, or other regions relatively fast. However, you’d have to pay a small extra fee that depends on the number of palms you’d be lathering up to escalate your license approval and grant process.

Therefore, if you’re short on cash, we recommend going the usual way and wait for your approval to be sanctioned.

Main Steps to Obtaining a Trade License for Opening a Restaurant in Dubai:

• Identify the corporate activities that the restaurant is going to be engaged in. The government allows up to 10 different activities per license.
• Identify the nature of the industry your restaurant will be operating in. The main industry categories are Professional, Industrial, and Commercial.
• Outline the legal status of your restaurant enterprise business in the United Arab Emirates.
• Come up with an attractive trade name for your restaurant. Please note that it’s not important for your trade name to be as same as your brand name. You can maintain different brands under a trade name easily.
• Submit your Trade License application and get an office on lease meanwhile.
• You will be contacted for additional documents if deemed necessary.
• Fulfill the extra requirements and submit those through reference DED letter to the Department of Tourism and Commerce Marketing in Dubai.

Restaurant License in Dubai, Abu Dhabi, Middle East Etc.

As far as a restaurant license in Dubai goes during your how to open a restaurant in Dubai pre-rituals, you need to approach the ‘Food Safety Department’ for a Food License . This part comes after you have successfully obtained a Trade License because the food license granting authority will ask you to procure a Trade License and submit its copy during the approval process.

The food safety department will ask you to submit the following documents. Depending on the nature of your restaurant’s operational category, you may or may not be asked for additional documentation. As far as the general gist goes, here’s what you need to know:

• A valid copy of your Trade License. As mentioned earlier, this license has to be obtained before applying for a Food License.
• Detailed insight on the interior design and layout of your restaurant.

In other words, it’s the blueprint for your restaurant license in Dubai . If you devised a robust business plan on how to start a restaurant anywhere in the Middle East, the blueprint requirements should have been followed by now. Procure and present the blueprint before Food Licensing authorities in Dubai to help them identify:

• Entry and Exit points of your physical name-brand restaurant.
• A dedicated space where you will be processing food.
• Dedicated space for storing processed and/or raw food.
• Ventilation system and installation of other facilities in adherence to general public health guidelines.
• Dedicated space highlighting kitchen area, maintenance area (if any), equipment storage facility, etc.

That was the easy part on how to open a restaurant in Dubai. The next step is considered more of an additional requirement that may or may not be applicable to your food business establishment.

These licenses might be needed in addition to Food and Trade licenses.

• License/ Permit for Pork-based food items.

You don’t have to have a pork permit in Dubai for your restaurant if you’re looking to serve customers with Halal food only !

• Vehicle permit for delivering or transporting food-related products.
• Liquor Permit

Once again, just like the optional pork permit, a liquor permit is not entirely needed if you have decided to go with the Halal food menu for your restaurant in the Middle East.

If you require a liquor license, you can contact the authorities at Al Tamimi and Company for obtaining a liquor license in Dubai for your restaurant. There are other companies too, but Tamimi Co. happens to be a well-known entity in helping owners with such predicaments.

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How to open a restaurant in Dubai with a unique concept

Speaking of uniqueness, this whole process is outlined as the potential USPs for your restaurant.

What exactly is a USP for business? In layman terms, it’s the ‘Unique Selling Point’ for your food business that goes parallel to driving the competition away.

Since USPs are a strong part of opening a restaurant in Dubai or any other part of the world, they are crucial to help you gain an upper hand. The industry is already way too competitive by now, and it doesn’t take long for new food business startups to diminish within a few months.

• Restaurant Ambiance
• Overall Servicing Protocols

The above three categories will help you to come up with your own unique style, available food choices to your customers, and how fast you are able to service them.

The most important thing in this entire debacle is the cost factor associated with all of the above scenarios. Ambiance comes with architecture that’s tied to the amount of cash you are looking to spend on how to open a restaurant in Dubai.

Likewise, servicing is related to hiring and training staff and upkeep maintenance expenses for your Dubai-based food business. Placing such lucrative servicing modules effectively isn’t that a big deal if it weren’t for a high feasibility factor to account for.

What if You Had a Simple Centralized Solution for Reducing Your Dubai Restaurant Cost to an All-Time Low?

For startups, it is not easier to figure out opening a restaurant in Dubai without overspending on all the extra things that may be deemed unnecessary in hindsight.

For instance, servicing is the kind of area that can be managed effectively without breaking the bank. And so are other aspects if you have made the initial investment in the right type of technology when considering how to open a restaurant the right way.

Blink: A Centralized Online Ordering System for Restaurants in Dubai or UAE

Stop dealing with the hassles of running your restaurant. Get everything in one place thanks to Blink’s cloud-based online ordering system that provides a branded mobile app and website for maximum exposure, along with built-in fleet management technology! With all this information at hand you’ll never have trouble keeping track or managing orders – just set it up so customers can place them through their favorite devices whenever they want from anywhere there is data service available. Grow your restaurant business with the one system that has it all! With Blink, you get a cloud-based online ordering and management platform for restaurants along with CRM tools to help manages orders efficiently.

Start your digital journey with Blink. Whether you’re an established business or in early stages of operations, we do the heavy lifting while giving YOU full control over managing and growing YOUR company! With our branded online restaurant ordering mobile app (available on Apple & Android devices), comprehensive merchant portal including payments options for both credit cards AND cashless reloads at any time – plus access to ALL orders delivered by drivers through one easy interface.

This type of agreement will help you to double down on your hard-earned pennies without leaking cash on fulfillment to commission-based order percentages.

• Robust reporting system to highlight real-time restaurant customer activities ranging from rush hour ordering times to marketing tools for maintaining a higher business presence in the Dubai restaurant industry.
• Fleet management app and rider-specific app interface with GPS tracking to effectively manage your order delivery system.
• Lightning-Fast Menu Creation system for setting up your very first food menu without having to be tech-savvy for that matter.

 … and about a bazillion other perks are waiting to be explored at Blink for Restaurant platform.

There’s Always Room for Starting a Restaurant Business in Dubai Up!

At the end of the day, despite high competition and millions of people going to old restaurants, the Gulf continues to present opportunities to new startup owners. It’s all about being patient, resilient, and developing a thick skin to withstand adversity.

Speaking of tolerance to adversity and adapting to rapid shifts in how to open a restaurant in Dubai quantum, you will be overwhelmed with complex decisions. The best way of maintaining a steadfast approach to such instances is through patience and commitment. Both of these virtues serve as a baseline model for any business that is ideally expected to last for several decades on end.

Having said that, it’s better to launch your restaurant today, instead of waiting for the perfect moment. Of course, where there are challenges, startup business owners require mentorship and an occasional nudge in the right direction. That’s why we encourage you to share your concerns in the comments section below. Alternatively, you can also write to us with your ‘how to open a restaurant business’ related queries at [email protected]

What are the key highlights of how to start a business in Dubai for first-timers?

Opening a restaurant in Dubai requires careful planning and dedication, as any small-scale business in UAE advice goes. 

The first step is to research the area and determine the target market.  Doing so will help you to decide what kind of small-scale business in UAE you are supposed to open, such as if it should serve a particular type of cuisine or offer different cuisines. 

It is also important to consider local customs, regulations, and requirements surrounding food service businesses. 

The next step is to secure financing for your venture by researching available grants, loans, or other sources of funding as a preliminary step on how to start a business in Dubai , or the UAE. 

In that order, a major consideration is securing an appropriate location for your restaurant, which means looking at zoning restrictions, size requirements, and rental costs. 

Additionally, some business plans may require additional materials such as architectural plans or health inspectors’ reports so be sure these are all ready before the next steps can start moving forward. 

The same concept applies to regulations concerning small business license costs in Dubai.

Before the opening day arrives make sure all necessary licenses are obtained from both federal and state levels , federal business tax ID numbers are secured as well as licensing requirements from the Dubai Municipality Food Control Department (FMCD). Securing this info and getting your documents in order is essential to the etiquette of small business license costs in Dubai.

These processes can take several months so proper planning ahead of time will help expedite this process when it comes time to verify documents like trade license certificates etc. 

In addition to that, as far as the small business license cost in Dubai is concerned, it requires an insurance policy to cover any potential liability associated with food handling or serving alcohol if applicable.

As rules associated with small-scale businesses in the UAE, and how to start a business in UAE go, the alcohol regulations vary across different locations within the city itself. Consulting a professional food inspector may be necessary before continuing onwards in this process.  

After all these steps have been completed, feel free to work on the menu for your restaurant alongside the pricing structure. 

Last, but not least, once everything else has been taken care of concerning creating a marketing strategy including social media platforms – make sure you have a dazzling website for your food business, so that people can continue to share your digital footprint in online communities.To further amplify your online presence, consider partnering with a  social media agency in Dubai that specializes in promoting restaurants and enhancing their digital footprint.

What is a big red flag that most people don’t contemplate on how to start a business in Dubai?

One of the biggest red flags when opening a restaurant in Dubai or a small-scale business in UAE is the cost aspect. 

Solopreneurs who are oblivious to the ins and outs of how to start a small business in Dubai aren’t fully aware of renting and purchasing space policies. 

The same goes for pricing structure. 

Dubai real estate charges for small businesses can be quite costly. 

In addition to that, there are specific regulations that must be followed to open a restaurant, including obtaining permits from the municipality and food safety certifications. These costs add up significantly and must be taken into account before entering into such an endeavor. 

Another major red flag regarding how to start a small business in Dubai is that potential restaurateurs should consider the competition. 

As Dubai has an already heavily saturated market with restaurants of many different types and styles, opening another eatery may not just prove difficult because of cost but also because of competition as well. 

Prospective owners would need to do ample research on their competitors before launching their venture to stand out among them. 

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How to Open a Restaurant in Dubai: A Step-by-Step Guide.

Discover how to open a restaurant in Dubai with this comprehensive step-by-step guide, covering licenses, permits, and key approvals.

Starting a restaurant in Dubai is an aspiration for many entrepreneurs. With its diverse population, thriving tourism industry, and a strong economy, Dubai offers a unique opportunity for the restaurant business. However, navigating the legal requirements, permits, and business setup process can be complex. This guide will walk you through each step to help you successfully open a restaurant in Dubai.

Steps to start a Restaurant Business in Dubai, UAE :

Step 1: market research and business plan:.

Before you dive into the process of opening a restaurant in Dubai, it’s crucial to conduct thorough market research. Understand the local food scene, identify your target audience, and study your competitors. Dubai is home to a diverse range of cuisines and dining experiences, so pinpointing your niche is essential.

Key Considerations:

• Target Market: Who are your customers? Are they locals, tourists, or expats?
• Cuisine Type: What type of cuisine will you offer? Will you focus on high-end dining, casual eateries, or fast food?
• Location: Where will your restaurant be located? High foot traffic areas like Downtown Dubai, Marina, or JBR are ideal but come with higher rents.
• Competitors: Who are your competitors? Evaluate their strengths and weaknesses to identify your unique selling proposition.

After gaining a thorough understanding of the market, create a comprehensive business plan. This should include your restaurant’s concept, menu, marketing strategy, and financial projections.

Step 2: Choose a Business Structure:

The next step in the process to open a restaurant in Dubai is to choose the right business structure. You can either set up your restaurant on the mainland or in one of Dubai’s free zones. Both options come with their own advantages and disadvantages:

• Mainland Business Setup : Allows you to operate anywhere in Dubai, giving you access to a larger market. However, Some cases it requires a local sponsor who will hold 51% of your business shares.
• Free Zone Setup : Offers 100% ownership and tax exemptions, but you’ll be limited to operating within the free zone and catering primarily to businesses within that zone.

Given the nature of the restaurant business, a mainland setup is often more advantageous as it allows you to cater directly to the local population and tourists.

Step 3: Obtain a Restaurant Business License

Securing a restaurant business license in Dubai is one of the most critical steps in your journey. The Dubai Department of Economic Development (DED) is the governing body in charge of issuing business licenses.Here’s what you need to do:

Requirements for a Restaurant License in Dubai:

• Trade Name Registration : Choose a unique name for your restaurant that complies with Dubai’s naming conventions. The DED must approve this name.
• Initial Approval: Submit an application to the DED for initial approval. This includes presenting your business plan, passport copies, and other required documents.
• Memorandum of Association (MOA): Draft and notarize an MOA with your local sponsor, outlining the distribution of shares and responsibilities.
• Lease Agreement: Secure a commercial space for your restaurant and obtain a tenancy contract. The location must meet the Dubai Municipality’s health and safety regulations.

Step 4: Secure Necessary Permits and Approvals

Opening a restaurant in Dubai requires several approvals and permits from different government bodies. These include:

• Food Safety Permit: Issued by the Dubai Municipality, this permit ensures your restaurant complies with food safety standards. Your kitchen layout must be approved, and your staff must be trained in food hygiene practices.
• Health and Safety Permit: Also issued by the Dubai Municipality, this permit covers the overall health and safety conditions of your restaurant, including ventilation, lighting, and waste management.
• Signage Permit: If you plan to display a signboard outside your restaurant, you’ll need a signage permit from the Dubai Municipality.
• Liquor License: If you plan to serve alcohol, you must obtain a liquor license from the Dubai Police and the Department of Tourism and Commerce Marketing (DTCM). Note that this license is only granted to restaurants located in hotels or certain designated areas.
• Obtain Cafeteria License in Dubai: If you are opening a smaller establishment like a cafeteria, you'll need to obtain a specific cafeteria license. This involves similar procedures but with potentially different fee structures and requirements.

Requirements and Documents Needed:

• Trade License: Copy of your initial trade license approval.
• Passport Copies: Provide copies of the passports of all business partners.
• Tenancy Contract: Valid tenancy contract for the restaurant premises.
• No Objection Certificate (NOC): A NOC from the property owner if necessary.
• Approval Drawings: Detailed drawings of the restaurant layout for approval by the Dubai Municipality.

Cost Considerations:

The costs involved in obtaining a restaurant business license in dubai can vary depending on several factors, including the size of the restaurant, its location, and the type of licenses required. on average, you can expect the total cost to range from aed 30,000 to aed 50,000, including:.

• Trade License Fees: Varies depending on the business structure and trade name.
• Municipality Fees: For approvals related to health, safety, and food permits.
• Liquor License Fees: If applicable, fees depend on the location and type of alcohol served.
• Fit-Out Approvals: Costs associated with getting approval for the restaurant’s interior design and kitchen setup.

How We Can Help:

At Plan My Firm , we specialize in helping entrepreneurs and businesses successfully open a restaurant in Dubai. From obtaining the necessary licenses and permits to offering comprehensive business support services like residency visas( UAE golden visa , Investor visa etc..), bank account opening , business contract drafting , and more, we ensure a seamless setup process.

Our team of experts is here to guide you every step of the way, ensuring that your restaurant meets all regulatory requirements and is ready to welcome customers. Contact us today to learn how we can assist you in bringing your restaurant vision to life in Dubai.

Can I open a restaurant franchise in Dubai? What are the requirements?

Yes, you can open a restaurant franchise in Dubai. Requirements typically include securing the franchise agreement, obtaining the necessary business and food licenses, and adhering to local regulations regarding branding and operations.

What are the steps to open a branch of an existing restaurant in Dubai?

To open a branch, you must follow similar procedures as starting a new restaurant, including obtaining a new business license, meeting Dubai Municipality's health and safety standards, and ensuring compliance with franchise or brand requirements.

What are the regulations for foreign investors opening a restaurant in Dubai?

Foreign investors can open a restaurant in Dubai, but they must partner with a local sponsor for a mainland business or establish their restaurant in a free zone to retain 100% ownership. Compliance with UAE regulations and business setup procedures is required.

How does the approval process differ for a franchise restaurant compared to an independent restaurant?

The approval process for a franchise restaurant involves additional steps such as obtaining franchisor approval and adhering to brand guidelines. Independent restaurants primarily need to focus on local regulations, licensing, and health and safety compliance.

What is the difference between a cafeteria license and a full restaurant license in Dubai?

A cafeteria license is typically required for smaller establishments offering limited food and beverage options with fewer regulations compared to a full restaurant license, which is needed for larger dining establishments with more extensive menus and operational requirements.

Are there specific requirements for international restaurant brands looking to enter the Dubai market?

International restaurant brands must comply with UAE business regulations, including obtaining local approvals, adapting to local market conditions, and possibly partnering with a local sponsor. They must also ensure compliance with food safety and health regulations.

What are the costs associated with obtaining a franchise license versus a regular restaurant license?

Franchise licenses often involve higher costs due to franchise fees, ongoing royalty payments, and adherence to brand standards. Regular restaurant licenses include costs for business registration, food safety, and health permits.

How does the approval process differ for a restaurant that plans to serve alcohol versus one that does not?

Restaurants serving alcohol need additional approvals, including a liquor license from the Dubai Police and the Department of Tourism and Commerce Marketing (DTCM), and must comply with stricter regulations compared to those that do not serve alcohol.

How much does it cost to start a restaurant in Dubai?

The cost to start a restaurant in Dubai can vary widely based on factors such as location, size, and type of restaurant. On average, you might expect to spend between AED 30,000 to AED 50,000 for initial setup, including licensing, permits, and initial rent. Additional costs for fit-out, equipment, and staffing can increase the total investment significantly.

How do I choose the right location for my restaurant?

Choosing the right location involves evaluating factors such as foot traffic, visibility, and accessibility. Consider areas with high customer potential, proximity to other businesses or attractions, and rent affordability. Conduct market research to understand the local demographics and competition to ensure the location aligns with your restaurant’s concept and target audience.

What are the health and safety regulations I need to comply with?

Health and safety regulations include compliance with Dubai Municipality's food safety standards, which cover hygiene practices, kitchen layout, and sanitation. Your restaurant must pass inspections related to food handling, storage, and overall cleanliness. Additionally, you must adhere to fire safety regulations and provide a safe environment for both staff and customers.

How long does it take to get all the necessary approvals and licenses?

The timeline for obtaining all necessary approvals and licenses can vary but typically takes between 1 to 2 months. This includes time for initial trade license approval, health and safety permits, food safety certifications, and any additional permits such as liquor licenses. The process may be quicker or longer depending on the efficiency of document submission and compliance.

What kind of insurance do I need for my restaurant?

Essential insurance types for a restaurant include property insurance to cover damage to the premises, liability insurance to protect against claims of injury or damage, and business interruption insurance to cover losses during unexpected closures. Additionally, consider worker’s compensation insurance to cover employee injuries and health insurance for staff.

Can I operate a restaurant in a Dubai free zone, and what are the limitations?

You can operate a restaurant in a Dubai free zone, but you will be limited to serving customers within the free zone and may face restrictions on operating outside the zone. Free zone setups offer 100% ownership and tax benefits but require compliance with the specific regulations and guidelines of the free zone authority.

What are the requirements to obtain a food safety permit in Dubai?

To obtain a food safety permit, you must submit your restaurant's layout plans for approval, undergo a health and safety inspection, and ensure that your staff is trained in food hygiene practices. You will also need to provide documents such as the trade license, tenancy contract, and proof of compliance with Dubai Municipality’s food safety standards.

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Restaurant Business Plan for Dubai [Sample Template]

By: Author Tony Martins Ajaero

Home » Asia » United Arab Emirates » Start Business in Dubai

Do you want to start a restaurant business in Dubai ? If YES, here is a complete sample restaurant business plan template and free feasibility report for Dubai.

Dubai is one of the topmost destinations for business people and investors in the whole of the Middle East. The government policy and state-of-the-art infrastructures support the growth of small businesses as well as large corporations.

Business opportunities in Dubai are not just open to the citizens of United Arab Emirate, but also to foreign investors as well. As a matter of fact, the foreign investors are wooed into Dubai because the presence of foreign business is a major boost to the economy of the country.

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There are many free trade zones in Dubai and that is why commerce and trade is at its peak. People come from far and wide to shop in Dubai because goods are sometimes cheaper there. The bottom line if that when people visit Dubai, they tend to eat in restaurants hence starting a restaurant business in Dubai can prove to be quite profitable.

If you intend starting your restaurant business in Dubai, then you must ensure that you play by the books or else you will lose your investment. Below is a sample restaurant business plan template for Dubai that can help you to successfully write your own.

A Sample Restaurant Business Plan Template for Dubai

1. industry overview.

Dubai restaurant industry is a thriving industry because per capita food spend in the UAE is among the highest in the world, at $3,159 in 2015, 32 percent higher than in the US (excluding alcohol), and about the same as the average person’s spend in Kuwait and Qatar combined.

As spend on food eaten in restaurant moves in line with the economy and population, a portion of the high value spend on food by Emiratis is explained by their high net worth — and by the fact that visiting malls and dining out are the primary sources of entertainment for many in the region.

Although at a population of 10.1 million, the UAE population is small, but with increase in tourists visit, there is always a boom in the restaurant industry.

The distribution of restaurants and people, however, is not even, with a heavy concentration of food service establishments in Dubai causing a high saturation rate in that market. Dubai has close to 260 people per restaurant (compared to 320 people per restaurant in the US).

In spite of the economic challenges brought on by sagging oil prices, many UAE restaurant operators continue to thrive. Consumer foodservice industry is close to $15 billion — and one with an attractive long-term outlook.

Despite the fact that there loads of big, medium and small-scale players in the restaurant industry, there’s still a lot of room for growth among UAE restaurant chains (and those looking to expand into new markets). In the UAE, the share of spend on food away from home (i.e. restaurants) is lower than that of other developed countries.

The US, for instance, is near to a 50 percent-50 percent split between restaurants and groceries. The breakdown in the UAE, meanwhile, is 46.7 percent restaurants, 53.3 percent groceries — but that split is set to weigh heavier for restaurants, and at an accelerated pace, over time.

There’s also potential for the growth of certain cuisines and segments. Chained foodservice, for instance, is under-developed:

While in the US and Canada, the share of chained foodservice has remained stable over the last few years (at around 54 percent of the restaurant industry). In countries like the UAE and KSA, the market potential for the expansion of chains ranges from $4.3 billion to $5.1 billion annually.

In the United Arab Emirates, the full-service restaurants are fragmented in terms of cuisines, formats, and price point, with a diversity of casual and fine dining options. Chained full-service restaurant sales are growing 1.8 times as fast as independents. The share of chains is set to grow to 19 percent in 2023 (from 16 percent in 2016).

It might interest you to know that UAE Restaurants industry has minimal barriers to entry, with minimal startup capital and no specific licensing requirements.

On the other hand, the high level of competition and market saturation in a declining industry can prove challenging to aspiring entrepreneurs who want to start their own restaurants in Dubai. Most players in the restaurant line of business in Dubai are small – to medium – size establishments that cater to the local and international community.

2. Executive Summary

Al Amirah® Restaurant, Inc. is a registered restaurant business that will be located at Dubai Marina – Dubai. We have been able to lease a facility along a major road that is big enough to fit into the kind of classy and intercontinental restaurant that we intend launching and the facility is located in corner – piece property between the Palm Jumeirah and Dubai Marina.

Al Amirah® Restaurant, Inc. will be involved in full-service dining of local and intercontinental delicacies, beverage sales and take-out meals.

We know that that there are several large and small restaurants all around Dubai Marina, which is why we spent time and resources to conduct our feasibility studies and market survey so as to offer much more than our competitors will be offering. We have self – service options for our customers, and our outlet has various payment options.

We are aware of the trend in the restaurant/fast food industry in UAE and we are not only going to operate a system where our customers would have to come to our restaurant to make a purchase, but we will also operate an online service so our customers can place orders online.

Al Amirah® Restaurant, Inc. will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable international business practices wherever possible.

We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.

Our plan is to position our restaurant to become one of the leading brands in the industry in the whole of Dubai, and also to be amongst the top 5 restaurant chains in the United Arab Emirates within the first 10 years of operation.

This might look too tall a dream but we are optimistic that this will surely be realized because we have done our research and feasibility studies and we are confident that Dubai Marina – Dubai is the right place to launch our restaurant.

Al Amirah® Restaurant, Inc. is a family business that is owned by Mrs. Al Amirah and her immediate family members. Mrs. Al Amirah is an intercontinental chef cum food maven, she has a B.Sc. in Hotel Administration, with over 10 years experience in the restaurant and fast food industry.

Although the business is launching out with just one outlet in Dubai Marina – Dubai, but there is a plan to open other outlets all around Dubai Marina and in other key cities in the United Arab Emirate.

3. Our Products and Services

Al Amirah® Restaurant, Inc. is in the Restaurants industry to make profits and we will go all the way to make available well – prepared local and intercontinental delicacies for our clients. We are prepared to make profits from the industry and we will do all that is permitted by the law in the United Arab Emirates to achieve our business goals, aim and ambition.

4. Our Mission and Vision Statement

• Our vision is to become the leading restaurant in Dubai Marina – Dubai and to establish a one stop restaurant in other cities in the United Arab Emirates.
• Our mission is to establish a Restaurant business that will make available varieties of well – prepared Local and intercontinental delicacies at affordable prices.

Our Business Structure

Our intention of starting a restaurant business is to build a standard restaurant in Dubai Marina – Dubai. Although our restaurant might not be as big as that of leading players in the industry, but will ensure that we put the right structures in place that will support the kind of growth that we have in mind.

We will ensure that we hire people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all our stakeholders. As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more.

In view of that, we have decided to hire qualified and competent hands to occupy the following positions;

• Chief Executive Officer (Owner)
• Restaurant Manager
• Human Resources and Admin Manager

Sales and Marketing Manager

Information Technologist

• Accountants / Cashiers
• Waiters / Waitress
• Van Drivers / Deliverers

5. Job Roles and Responsibilities

Chief Executive Officer – CEO (Owner):

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
• Accountable for fixing prices and signing business deals
• Responsible for providing direction for the business
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization

Admin and HR Manager

• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Defines job positions for recruitment, and managing interviewing process
• Carries out induction of new team members
• Accountable for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Oversees the smooth running of the daily office activities.

Restaurant Manager:

• Responsible for managing the daily activities in the restaurant
• Ensures that the restaurant facility is in tip top shape and conducive enough to welcome customers
• Interfaces with third – party providers (vendors)
• Reports to the Chief Executive Officer
• Attends to Customers complains and enquiries
• Prepares budget and reports for the organization
• Any other duty as assigned by the CEO
• Responsible for preparing different Local and intercontinental delicacies as requested by our clients
• Makes lists and budget for cooking supplies
• Oversee the entire cooking process
• Responsible for training new cooks
• Makes sure that quality is maintained at all times
• Responsible for purchasing food ingredients for the organization
• Ensures that the kitchen is kept clean at all times
• Ensures that all kitchen wares are kept at their proper position after use.
• Any other duty as assigned by the Restaurant Manager.
• Manages external research and coordinate all the internal sources of information to retains the organizations’ best customers and attract new ones
• Models demographic information and analyze the volumes of transactional data generated by customer purchases
• Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
• Identifies development opportunities; follows up on development leads and contacts
• Documents all customer contact and information
• Represents the company in strategic meetings
• Helps increase sales and growth for the company
• Manages the organization’s website
• Handles ecommerce aspect of the business
• Responsible for installing and maintenance of computer software and hardware for the organization
• Manages logistics and supply chain software, Web servers, e-commerce software and POS (point of sale) systems
• Manages the organization’s CCTV
• Handles any other technological and IT related duties.

Accountant/Cashier:

• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensuring compliance with taxation legislation
• Handles all financial transactions for the organization
• Serves as internal auditor for the organization

Waiters/Waitress:

• Promptly attends to customers in a friendly and professional manner
• Ensures that un-occupied tables are always set and ready for customers
• Handles any other duty as assigned by the Restaurant manager

Van Drivers:

• Delivers customer’s orders promptly
• Deliver correspondence for the restaurant
• Runs errand for the organization
• Any other duty as assigned by the manager
• Responsible for cleaning the restaurant facility at all times
• Ensures that toiletries and supplies don’t run out of stock
• Handles any other duty as assigned by the restaurant manager.

6. SWOT Analysis

We are quite aware that there are several restaurants in Dubai Marina – Dubai and even in the same location where we intend locating ours, which is why we are following the due process of establishing a business. We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be equipped to confront our threats.

Al Amirah® Restaurant, Inc. employed the services of an expert HR and Business Analyst with bias in the restaurant business to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives. Here is the summary of the SWOT analysis that was conducted for Al Amirah® Restaurant, Inc.;

The location of our business, the business model we will be operating on, varieties of payment options, wide varieties of local and intercontinental delicacies, our excellent customer service culture, etc. will definitely count as a strong strength for Al Amirah® Restaurant, Inc. Also, we have a lot of professional intercontinental chefs under our pay role and a management team that has what it takes to grow a new business to profitability within record time.

For a business like ours, a major weakness that we will be dealing with is the normal teething stages that a new business goes through.

• Opportunities:

Dubai a city with a huge number of tourists, and lovers of local and intercontinental delicacies provide us with vast opportunities. Restaurant operators’ top line is significantly impacted by tourism (both in terms of number of tourists and their composition) and we are positioned to leverage on this.

Aside from high staff attrition and labor cost, steady increase in rent is one major threat that we are likely going to face. The average cost of opening a small, independent restaurant in Dubai ranges from AED 500,000 to AED 1.25 million depending on the size and format.

Even these figures are based on restaurant space ranging from 500 sqm to 1,200 sqm only. Moreover, 78 percent of money outflow of the restaurant business comprises of capital costs, rent and working capital. Thus, high rentals are the biggest and the most upfront challenge that we will face in the restaurant industry in Dubai.

7. MARKET ANALYSIS

• Market Trends

A recent trend in the restaurant industry in Dubai shows that the several new malls, hotels, airports and neighborhood expansions as well as theme parks and sports stadiums all offer local restaurant operators the opportunity to enter new markets or explore franchise opportunities.

Despite the fact that competition remains fierce all across Dubai, restaurateurs looking to expand in this market should take steps to develop their brands with strong product differentiation and invest in technologies that keep costs low and attract new customers.

While continued domestic investments are likely to cushion the UAE restaurant industry from any major shifts in oil prices or the geopolitical landscape, the market will nevertheless remain challenging for operators in the near future.

To withstand this oversaturation, restaurant operators are advised to focus their efforts on building a strong brand and identifying their unique position. Strategic advertisements, both physical and digital, can help attract new customers and that is the current trend in Dubai.

8. Our Target Market

We are aware of the fast-growing patronage of local and intercontinental delicacies in the United Arab Emirates and this trend is not going to abate anytime soon and loads of entrepreneurs are leveraging on this.

In view of that, we have positioned our restaurants to service the residence of Dubai Marina – Dubai and every other location where our chains of restaurants will be located in key cities all over the United Arab Emirates. We have conducted our market research and we have ideas of what our target market would be expecting from us. We are in business to retail our local and intercontinental delicacies to the following groups of people;

• Corporate Organizations
• Corporate Executives
• Business People
• Sports Men and Women

Our competitive advantage

Dubai and the United Arab Emirates in general is not just one of the most lucrative markets for the restaurant industry in the world; it is also one of the most competitive markets. The bright side to this is that since the market is saturating, service providers are coming up with more sophisticated ideas, different trends are being born and consumers have no shortage of choice.

The unwelcoming side is that the restaurant industry in Dubai, Abu Dhabi and the rest of the UAE is also confronted with challenges, now more than ever before.

Our ability to control stock on hand and come up with unique meals at short – notice, our ability to quickly adopt new technology and of course our easy access to multi – skilled and flexible workforce are part of the competitive advantage that we will be bringing to the table.

Al Amirah® Restaurant, Inc. is launching a classy intercontinental restaurant that will indeed become the preferred choice of residents and visitors to Dubai Marina. Our restaurant is located in a corner piece property on a busy road directly opposite one of the largest shopping malls in Dubai Marina. We have enough parking space that can accommodate over 25 cars per time.

One thing is certain, we will ensure that we have wide varieties of local and intercontinental delicacies, beverages and coffee et al available in our restaurant at all times. Our excellent customer service culture, online store, various payment options and highly secured facility will serve as a competitive advantage for us.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the restaurant/fast food industry in Dubai, meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.

9. SALES AND MARKETING STRATEG

• Sources of Income

Al Amirah® Restaurant, Inc. is in business to retail a wide variety of local and intercontinental delicacies, coffee, non-alcoholic drink and water to the residence and visitors of Dubai Marina-Dubai and that is exactly our sources of incomes.

10. Sales Forecast

One thing is certain when it comes to restaurants, if your restaurant is centrally positioned, you will always attract customers cum sales and that will sure translate to increase in revenue generation for the business.

We are well-positioned to take on the available market in Dubai Marina – Dubai and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six month of operation and grow the business and our clientele base.

We have been able to examine the Restaurants industry, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to startups in Dubai Marina.

• First Fiscal Year: 920,000 AED
• Second Fiscal Year:  1.8 Million AED
• Third Fiscal Year:  3.3 Million AED

N.B : This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

Prior to choosing a location for Al Amirah® Restaurant, Inc., we conducted a thorough market survey and feasibility studies in order for us to penetrate the available market.

We hired experts who have good understanding of the restaurant industry in Dubai to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the population. In a nutshell, Al Amirah® Restaurant, Inc. will adopt the following sales and marketing approach to win customers over;

• Open our restaurant in a grand style with a party for all.
• Introduce our restaurant business by sending introductory letters alongside our brochure to corporate organizations, travel and tour companies, households and key stake holders in and around Dubai Marina
• Ensure that we make wide varieties of local and intercontinental delicacies in our restaurant at all times.
• Make use of attractive hand bills to create awareness and also to give direction to our restaurant
• Position our signage/flexi banners at strategic places around Dubai Marina – Dubai and Palm Jumeirah
• Create a loyalty plan that will enable us reward our regular customers

11. Publicity and Advertising Strategy

Regardless of the fact that our restaurant is well located, we will still go ahead to intensify publicity for the business.

Al Amirah® Restaurant, Inc. has a long – term plan of opening chains of classy restaurants in various locations all around Dubai and key cities in the United Arab Emirates which is why we will deliberately build our brand to be well accepted in Dubai Marina before venturing out.

Here are the platforms we intend leveraging on to promote and advertise Al Amirah® Restaurant, Inc.;

• Place adverts on community – based newspapers, radio and TV stations.
• Encourage the use of word of mouth publicity from our loyal customers
• Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook, Twitter, LinkedIn, Snapchat, Google+ and other platforms to promote our business.
• Ensure that our we position our banners and billboards in strategic positions all around Dubai Marina – Dubai
• Distribute our fliers and handbills in target areas in and around Dubai Marina and Palm Jumeirah
• Advertise Al Amirah® Restaurant, Inc. business in our official website and employ strategies that will help us pull traffic to the site
• Brand all our official cars and delivery vans and ensure that all our staff members wear our branded shirt or cap at regular intervals.

12. Our Pricing Strategy

Our pricing system is going to be based on what is obtainable in the restaurant industry in Dubai, we don’t intend to charge more and we don’t intend to charge less than what our competitors are charging per meal. Be that as it may, we have put plans in place to offer discounts once in a while and also to reward our loyal customers especially when they come in as a group.

We are aware that there are contracts to supply local and intercontinental meals at events organized by government, corporate organizations or international communities; we will ensure that we abide by the bidding pricing template when we bid for such contracts.

• Payment Options

The payment policy adopted by Al Amirah® Restaurant, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United Arab Emirates.

Here are the payment options that Al Amirah® Restaurant, Inc. will make available to her clients;

• Payment via bank transfer
• Payment with cash
• Payment via credit cards
• Payment via online bank transfer
• Payment via check
• Payment via mobile money transfer

In view of the above, we have chosen banking platforms that will enable our client make payment for meals and drinks purchase without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.

13. Startup Expenditure (Budget)

From our market survey and feasibility studies, we have been able to come up with a detailed budget of establishing a standard and world class Restaurant. These are the areas we are looking towards spending our startup capital on;

• The total fee for registering the business in the United Arab Emirates (Free Trade Zone) – 17,500 AED.
• Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – 15,200 AED.
• Marketing promotion expenses for the grand opening of Al Amirah® Restaurant , Inc. LLC in the amount of 14,000 AED and as well as flyer printing (2,000 flyers at 0.19 AED per copy) for the total amount of – 12,000 AED.
• The cost for hiring business consultant – 10,000 AED.
• The cost for insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – 9,600 AED.
• The cost for payment of rent for 12 months at per square feet in the total amount of 1.2 million AED
• The cost for construction of a standard Restaurant and kitchen – 500,000 AED
• Other start-up expenses including stationery ( 2,000 AED ) and phone and utility deposits ( 10,000 AED ).
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – 400,000 AED
• The cost for start-up inventory (cooking ingredients, alcoholic drinks, soft drinks, beverages, coffee and serving wares et al) – 320,000 AED
• Storage hardware (bins, rack, shelves, food case) – 16,000 AED
• The cost for counter area equipment (counter top, sink, ice machine, etc.) – 33,500 AED
• The cost for store equipment (cash register, security, ventilation, signage) – 52,300 AED
• The cost of purchase of delivery vans – 215,000 AED
• The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – 16,450 AED.
• The cost of launching a website – 2,400 AED
• The cost for our opening party – 40,000 AED
• Miscellaneous – 50,000 AED

We would need an estimate of 3.2 million AED to successfully set up our Restaurant in the United Arab Emirates.

Generating Startup Capital for Al Amirah® Restaurant, Inc.

Al Amirah® Restaurant, Inc. is a private business that is solely owned and financed by Mrs. Al Amirah and her immediate family members. They do not intend to welcome any external business partners which is why she has decided to restrict the sourcing of the startup capital to 3 major sources.

These are the areas we intend generating our startup capital;

• Generate part of the startup capital from personal savings
• Source for soft loans from family members and friends
• Apply for loan from the bank

N.B: We have been able to generate about 1.2 million AED (Personal savings 1 million AED and soft loan from family members 200,000 AED ) and we are at the final stages of obtaining a loan facility of 2 million AED from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

The survival and viability of any business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and the business structure. If all of these factors are missing from a business, then it won’t be too long before the business closes shop.

One of our major goals of starting Al Amirah® Restaurant, Inc. is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to retail our Local and intercontinental delicacies a little bit cheaper than what is obtainable in the market and we are prepared to survive on lower profit margin for a while.

Al Amirah® Restaurant, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.

We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

• Business Name Availability Check : Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Leasing of facility and remodeling the facility to fit into a standard Restaurant: In Progress
• Conducting Feasibility Studies: Completed
• Generating capital from family members: Completed
• Applications for Loan from the bank: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Printing of Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Purchase of the needed furniture, kitchen appliances, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business both online and around the community: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Opening party planning: In Progress
• Compilation of our list of products that will be available in our shop: Completed
• Establishing business relationship with vendors – suppliers of cooking ingredients, coffees, and soft drinks – In Progress.

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How to Start a Restaurant in Dubai?

Dubai is a beacon of culinary diversity and business opportunity, making it an ideal location for launching a restaurant. Renowned for its luxurious lifestyle and as a crossroads of numerous cultures, the city offers a dynamic dining scene that attracts food enthusiasts worldwide. Its strategic location, supportive business environment, and high tourist footfall provide unique advantages for restaurateurs looking to make a mark in the industry. In this article, we will look into how to start a restaurant in Dubai, detailing the essential steps and considerations to help you succeed in this vibrant market.

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How To Open A Restaurant In Dubai?

When planning to open a restaurant in Dubai, numerous factors must be considered in successfully launching and running a restaurant in this city. Here is a comprehensive list of considerations and steps to help you manage the complexity of starting a restaurant in Dubai:

Determining Your Restaurant's Concept and USP

When starting a restaurant in Dubai, it is crucial to establish a distinct and appealing concept that distinguishes you from competitors in the bustling and competitive dining industry. A well-defined concept can be the key to attracting customers and achieving long-term success. Here is how to refine your restaurant's concept and identify its Unique Selling Proposition (USP):

• Define the Service Style:  Choose the type of service that best suits your vision, whether fast-casual, fine dining, buffet or a cafe.
• Curate the Menu:  Focus on creating a menu that reflects your unique concept, whether it's ethnic cuisine, fusion dishes, locally sourced ingredients, or innovative culinary techniques.
• Design the Ambiance:  Your restaurant's physical environment should resonate with your concept and enhance the overall customer experience.
• Identify and Develop Your USP:  Identify what makes your restaurant unique. This could be a special dish, an unusual theme, or an innovative service approach that sets you apart.
• Innovation:  Be open to experimenting with new ideas that attract customers, such as incorporating unique cultural elements or using advanced technology.

Finalising a Business Plan

Creating a comprehensive business plan is crucial in starting a restaurant in Dubai. Your business plan should clearly articulate your vision, goals, objectives, and budget. It should also detail your restaurant's concept, target market, and operational plans, including how you'll manage daily activities. Additionally, it's essential to outline contingency strategies for potential challenges. Dubai's Department of Economic Development (DED) oversees this planning process, which ensures that all businesses align with local regulations and standards.

Select the Region

When setting up your restaurant in Dubai, you have two main options for your location:

• Free Trade Zone :  Setting up one of Dubai's free trade zones offers benefits like 100% foreign ownership, full repatriation of profits and capital, and exemptions from import and export duties. It's an attractive option for foreign investors but may have restrictions on trading directly with the local market.
• Mainland Area :   Establishing your restaurant in the mainland area allows you to operate freely anywhere in the UAE, including direct sales within the local market. This option requires a local partner who holds at least 51% of the business, though recent reforms have relaxed these requirements for certain types of businesses. Under the latest regulations, the Mainland allows 100% foreign ownership in specific sectors. For other sectors not covered by these regulations, foreign investors must have a local partner who holds at least 51% of the business.  

Selecting the Restaurant Location

After finalising your business plan and choosing the region for your restaurant in Dubai, the next crucial step is selecting the physical location. This decision can significantly impact the success of your venture. Here are key factors to consider when choosing the location of your restaurant:

• Target Audience 
• Visibility and Accessibility
• Competition
• Size and Layout
• Growth Potential

Obtaining a License to open a Restaurant in Dubai

After securing a prime location for your restaurant in Dubai, obtaining all the necessary permits to authorise you to operate is imperative. In Dubai, you primarily need to procure two types of licenses to open a restaurant:

• Trade License :  This is essential for any business operating in Dubai. It legally permits you to conduct business activities in the region, as obtained from the Department of Economic Development (DED) in Dubai.
• Food License:  Issued by the Dubai Municipality's Food Safety Department, this license is specific to food-related businesses. It ensures that your restaurant adheres to the local food safety and hygiene regulations.

Additionally, depending on your restaurant's specific features or services, you may require other licenses and permits:

• Liquor License:  If you plan to serve alcohol at your restaurant, a liquor license is mandatory. This license is regulated by the Dubai Police and requires adherence to strict guidelines.
• Pork Permit:  If your cuisine includes pork products, a separate permit is required to handle and serve pork, as it is subject to specific regulations in Dubai.
• Entertainment License:  Restaurants that plan to host live music, dance performances, or other forms of entertainment must obtain an entertainment license from the Dubai Department of Tourism and Commerce Marketing (DTCM).
• Food Consignment Release License:  This license is necessary for restaurants that import food products.
• Vehicle Permit for Transporting Food Products:  Any restaurant that operates delivery vehicles must obtain a vehicle permit.

Securing these licenses is the first critical step towards launching your restaurant in Dubai, setting the foundation for Compliance and success in the city's competitive dining sector.

Procedure to Get a Restaurant License and Start a Restaurant Business in Dubai

Starting a restaurant in Dubai involves a series of steps regulated by various governmental departments to ensure Compliance with local business and food safety laws.

Required Documents for Dubai Trade License

Having all the necessary documentation is crucial to streamlining the process when applying for a trade license in Dubai.

• Initial Approval Letter from DED 
• Detailed Business Plan
• Premises Tenancy Contract
• Blueprints and Floor Plan of Restaurant
• Memorandum of Association with Local Sponsor: If setting up in the mainland area.

Step-by-Step Guide to Obtaining a Restaurant License

Here is a step-by-step guide to obtaining a restaurant license and starting your business:

• Select a Company Name:   Choose a unique name for your restaurant that complies with the UAE's naming conventions. Get the name approved by the Department of Economic Development (DED) or relevant free zone authority.
• Choose Business Activities:  Clearly define the nature of your restaurant's activities. This will determine the type of licenses and approvals needed.
• Obtain Initial Approval from DED:  Submit your initial application and relevant documents to the Department of Economic Development (DED) for approval.
• Tenancy Contract:  Sign a tenancy contract for your restaurant space. This will need to be registered with Ejari.
• Ejari Registration:  Register your tenancy contract with Ejari through the Dubai Land Department. This step formalizes your rental agreement and ensures Compliance with Dubai's rental laws.
• Obtain DTCM Approval:  Get approval from the Department of Tourism and Commerce Marketing (DTCM), which is necessary for restaurants that might impact tourism or commerce.
• Apply for the Trade License :  After approvals, submit all required documents and paperwork to DED to finalize the business setup.
• Pay License Fees:  Pay the necessary Dubai trade license fees once your application is approved.

Procedure to Apply for the Food License

After receiving initial approval from the Department of Economic Development (DED), you can then approach the Food Safety Department to obtain your food license.

The Food Safety Department is responsible for issuing the Food Safety License in Dubai. To apply for this license, you must first have your trade license from the DED. Here is a streamlined process:

• Receive Initial Approval from DED:  Secure initial approval and the trade license from the DED. (Process mentioned above).
• Apply to the Food Safety Department:  Submit your application along with the required documents to the Food Safety Department.
• Provide Necessary Documentation:  Ensure you have:
• A copy of the trade license or the primary approval from the DED or relevant free zone authority.
• Interior design layout of the premises (blueprint), which includes:
•     Entry and exit passages
•     Space for processing food
•     Area for storing food
•     Windows and ventilation system
•     Location of food preparation equipment
•     Dishwashers and other supportive equipment

Meeting these requirements and obtaining your Food Safety License ensures that your restaurant complies with Dubai's strict food safety and hygiene standards, allowing you to operate legally and safely.

Once you have obtained the food and trade licenses, you will be authorized to start your restaurant in the city-state. However, depending on your specific business activities, you may need to acquire additional licenses (refer to above).

Cost of Opening a Restaurant in Dubai

The cost of opening a restaurant in Dubai can be significant and influenced by various essential factors. When calculating the Cost of Opening a Restaurant in Dubai, you must consider expenses such as:

• License:  Secure all necessary food and business operation licenses.
• Rent or Property Purchase:  Consider the costs associated with leasing or buying a venue.
• Permissions:  Obtain additional permissions required for specific restaurant operations.
• Staff Training Program:  Invest in training to ensure your team delivers excellent service.
• Software for Daily Operations:  Implement software solutions for managing sales, reservations, and inventory.
• Insurance:  Get the appropriate insurance to cover liabilities, property, and employees.
• Working Capital:  Ensure you have funds to cover day-to-day expenses during the initial phase.
• Setup Costs:  Budget for kitchen equipment, furniture, and decor to set up your restaurant.

These are the initial investments needed to establish a restaurant in Dubai. Read our article to learn more about the Cost of Opening a Restaurant in Dubai

Starting a restaurant in Dubai is a multifaceted process that requires careful planning and adherence to local regulations. By following these steps, you can navigate the complexities of setting up your restaurant and position yourself for success in Dubai's dynamic culinary scene. Whether you're bringing a unique dining concept to life or expanding an existing brand, Dubai offers a vibrant market with vast opportunities.   Good luck with your restaurant venture!

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Introduction: A Restaurant Business in Dubai

Dubai, with its thriving economy, multicultural society, and constant influx of tourists, stands as an ideal destination for aspiring restaurateurs. If you’re passionate about food and dream of owning a restaurant in this dynamic city, you’re in the right place. This comprehensive guide will walk you through the essential steps and insights on how to set up a restaurant business in Dubai.

Table of Contents

Read Article: Top 25 Business Ideas in Dubai for 2024: Your Roadmap to Success

Understanding the Dubai Restaurant Landscape

Before you embark on your culinary journey, it’s crucial to understand the Dubai restaurant landscape. Dubai offers a diverse dining scene, catering to various tastes and preferences. From upscale fine dining establishments to bustling street food stalls, there’s room for all types of restaurants.

Read Article: Why Choose UAE for Your Dream Business?

Market Research

Start by conducting thorough market research. Identify your target audience, study your competition, and pinpoint the gap in the market that your restaurant can fill. This research will help you choose the right cuisine, location, and pricing strategy for your restaurant.

Legal Requirements and Licensing

Setting up a restaurant in Dubai involves several legal and licensing requirements. To operate your restaurant legally, you need to navigate through the following steps:

1. Business Licensing

• Trade License : Register your restaurant under the legal boundaries set by the Department of Economic Development (DED) .
• Food License : Sign an agreement with the Food Safety Department to obtain your food license. This is essential for ensuring the safety and hygiene of your food preparation and service.
• Liquor License : If you plan to serve alcohol, you will require a liquor license. Make sure to follow the specific regulations surrounding the sale of alcoholic beverages.

2. Location and Ambiance

Selecting the right location and creating an inviting ambiance are crucial to attracting customers. Dubai offers two primary options for restaurant locations: free zones and the mainland area. Free zones allow for 100% ownership without local sponsorship, while the mainland area requires approval from the DED authorities.

3. Architectural Rules

Compliance with architectural rules is vital. The Dubai Municipality has specific guidelines for restaurant kitchens, ventilation systems, fireproofing, dishwashing facilities, food storage areas, and more. Ensure your restaurant’s layout adheres to these rules.

Read Article: Steps to Obtaining Your Trade License in Dubai, UAE

Documents needed for starting a restaurant in the UAE or Dubai

• Duplicate of your trade license
• Restaurant blueprint or layout (relevant for specific free zones)
• Any extra permits obtained, such as a liquor permit
• Investor’s passport copy
• Investor’s visa copy
• Two coloured passport-sized photos
• A comprehensive business plan

Financial Planning

The cost of opening a restaurant in Dubai varies based on several factors, including location, size, menu, staffing, and permits. Generally, the cost can range from AED 200,000 to AED 350,000 or more, covering expenses such as company licenses and space rental.

Calculate your restaurant cost today!

Types of Restaurants and Their Costs

• Full-Service Restaurants : These typically demand larger spaces and a higher initial investment, ranging from AED 300,000 to over AED 500,000.
• Delivery Restaurants : A more cost-efficient option with costs ranging from AED 100,000 to AED 160,000, as they don’t require a dine-in area.
• The Hole-in-the-Wall Restaurant : A small-scale option, with an average size of 1,000 square feet and capital ranging from AED 50,000 to AED 80,000, ideal for small-scale production and delivery.

Restaurant Business Plan

A solid business plan is the foundation of your restaurant’s success. It should include:

• Market Analysis : Understanding your target market and competition.
• Menu Development : Creating an appealing and well-priced menu.
• Marketing Strategies : Developing plans for marketing and promotions.
• Operational Plan : Detailing how your restaurant will operate.
• Financial Projections : Estimating your expenses, income, and profitability.

Involving Investors

If you require additional funding for your restaurant, consider involving investors. However, be cautious when drafting agreements with them to avoid potential pitfalls:

• APR Percentages : Pay attention to the annual percentage rate (APR) in your agreement with investors, as high APRs can lead to significant financial burdens.
• Loss Equity : Clearly define the distribution of losses between you and your investors in case of business failure.

Obtaining Licenses

Once your restaurant business plan is ready, it’s time to obtain the necessary licenses:

1. Trade License

• Identify your business activities and nature (commercial or professional).
• Register a trading name for your company.
• Complete the application form with the DED department.
• Provide all required documents.
• Submit the information to the DED for approval.

2. Food License

• Ensure you have your trade license approved first.
• Present a blueprint of your restaurant’s layout to authorities.
• Obtain approval for food safety measures from the Food Control Department.
• Accommodate specific areas in your blueprint, such as food storage, washing areas, and ventilation systems.
• Submit all necessary information to obtain your food license.

Read Article: Difference Between Professional and Commercial Trade Licenses in Dubai, UAE

Unique Selling Points (USPs)

Differentiating your restaurant is crucial. Consider your USPs:

• Restaurant Ambiance : Create a unique and inviting atmosphere.
• Food Menu : Develop a diverse and appealing menu.
• Overall Servicing Protocols : Ensure excellent customer service.

Alfazone: Your Restaurant Setup Partner in Dubai

Navigating the intricacies of setting up a restaurant business in Dubai can be challenging. That’s where Alfazone Businessmen Services comes in. We offer expert guidance and support throughout the process, from obtaining licenses to financial planning and beyond. Let us help you turn your dream of owning a restaurant in Dubai into a reality.

In conclusion, setting up a restaurant business in Dubai is a rewarding endeavour, but it requires careful planning, compliance with regulations, and a well-thought-out business plan. With the right preparation and the support of experienced professionals like Alfazone, you can embark on your culinary journey with confidence.

Calculate your restaurant business setup cost in Dubai

Determining the startup costs for your restaurant business in Dubai is a crucial step towards your culinary venture’s success. Our expert’s calculator simplifies this process, considering various factors such as location, size, permits, and more. With our tool, you can get a precise estimate of what it will take to establish your restaurant in Dubai, helping you plan your budget effectively and make informed decisions. Take the guesswork out of your business setup cost calculations and embark on your culinary journey in Dubai with confidence.

You may also love to read this article: How to Open a Coffee Shop in Dubai

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Home > Business Setup > How to Start a Restaurant Business in Dubai

How to Start a Restaurant Business in Dubai

Nov 30, 2023 | Business Setup , UAE Company Setup

Embarking on the journey of how to start a restaurant business in Dubai presents a thrilling opportunity to enter one of the world’s most dynamic culinary landscapes. With the city’s reputation as a melting pot of cultures and flavours, a strategic approach to launching a restaurant can lead to delectable success. From researching current food trends to understanding the nuances of the local market and navigating Dubai’s legal landscape, it’s a venture that demands creativity, precision, and a well-crafted business plan .

We’ll walk you through the essential steps to conceptualise, develop, and open a restaurant in Dubai, ensuring you’re equipped to satisfy the palates of a diverse and discerning international clientele in this bustling gastronomic hub.

Table of Contents

The Dubai Restaurant Market

Researching current food trends.

Dubai has evolved into a global culinary hub, boasting a diverse food and beverage industry. The city is home to over 13,000 eateries, serving a melting pot of more than 200 nationalities. This makes it a vibrant scene for any new restaurant venture. You’ll need to understand and embrace current food trends to stand out in this competitive market. Chefs like Reif Othman , who is at the forefront of culinary innovation, emphasise the importance of creativity and wit alongside quality and consistency.

Asian cuisine, particularly Japanese and sushi, has become increasingly popular, and this trend is expected to continue. Additionally, there’s a growing emphasis on sustainability, with chefs like Andy Toh of Hakkasan focusing on locally grown and organic produce. This shift towards sustainability isn’t just a passing trend but a movement that’s becoming integral to economic development and the food industry in Dubai.

Entertainment is becoming more intertwined with dining experiences . Carlos Des Los Mozos of Addmind Hospitality has noted the increasing demand for a combination of food, drinks, interiors, and ambience. This is shaping the future of restaurant concepts. The rise of homegrown restaurants is also notable, with chef Soleman Haddad of Moonrise stating that they’re gaining traction. They resonate with the local market and adapt global trends to regional preferences.

Identifying Your Target Audience

The success of a restaurant in Dubai relies heavily on identifying and catering to the right target audience. This requires a thorough understanding of potential customers’ demographics, psychographics, and behaviours. By getting to know these factors, restaurateurs can tailor their business plans , menus, and marketing strategies to attract and retain their ideal clientele.

The target audience for a restaurant is a specific segment within the larger dining market. It’s characterised by various attributes such as age, gender, income, and personal preferences. For instance, the ambience of a restaurant should match the tastes of the target market . Additionally, the location should be convenient for where they live, work, or socialise.

Creating a mission statement that resonates with all the restaurants’ target audience is crucial. It’ll be reflected in all marketing and internal materials. The menu and services offered are the primary reasons the target market will patronise a restaurant. Therefore, it’s vital to align them with the customers’ preferences. The target market will also influence which trends the restaurant adopts and which it avoids.

Analysing Competitor Success Stories

Understanding the competition is key to establishing a niche in a city with a high density of restaurants. Dubai alone has 9,189 restaurants, making the industry extremely competitive. This includes various players such as supermarkets, cloud kitchens, and food trucks. By analysing successful competitors, restaurateurs can gain valuable insights into effective business practices, unique selling propositions, and pricing strategies.

Competitive pricing is critical and must reflect the value perceived by customers without leading to losses. Considerations such as food costs, market price fluctuations, and other operational expenses like labour and rent must be taken into account when setting menu prices. Restaurants must also manage the cost of imported ingredients, which can significantly affect pricing due to the UAE’s reliance on food imports.

Identifying a unique selling point is essential to stand out from the competition. This could be an exclusive menu item, a distinctive dining experience, or community engagement through local events and partnerships. Leveraging technology and online marketing can extend a restaurant’s reach, attracting new customers and encouraging them to visit.

Navigating Dubai’s Legal Landscape

Acquiring necessary licences and permits.

Understanding the legal prerequisites is essential to initiate a restaurant or food licence in Dubai. Compliance with the ‘Food Code’ is mandatory for ensuring food safety from the point of production to the moment it reaches the consumer, thereby upholding the industry’s high standards.

Before opening your restaurant, however, it’s imperative to have a team of trained professionals to manage your establishment according to local regulations. This is crucial for your business’s smooth operation and avoiding legal complications.

Two primary licences are required: a food licence from the Food Safety Department and a trade licence , which necessitates various documents, including a No Objection Certificate for the foodstuff establishment trade licence and a trade licence for conducting business activities. Should you decide to include alcohol in your offerings, additional licensing is required.

The process for obtaining a liquor licence is stringent, with a 30% tax imposed on alcohol sales. Additional fees are also applicable for liquor permits for importing and selling alcoholic beverages. The application for this licence involves specific procedures with the licensing authorities.

Understanding Local Food Safety Regulations

The infrastructure of your restaurant must adhere to stringent guidelines. Kitchens must occupy a significant portion of the total space. If featuring a tandoor, they should measure within certain specified dimensions. Adequate ventilation systems are required to prevent smoke accumulation, with chimneys extending beyond the height of adjacent structures.

It’s also necessary to have the food control department ensure that the interior surfaces are designed for cleanliness and safety . The establishment must include designated areas for various food preparation processes and sufficient storage for different food categories.

Regulations also dictate the installation of drainage systems, which must maintain a specified clearance from walls to prevent contamination.

Considering Partnership with a Local Sponsor

For foreign entrepreneurs, selecting the right location is crucial. While some free zones and trade zones offer full ownership without the need for a local sponsor, they confine your business to specific areas. On the mainland , where restaurants often thrive, a local sponsor who holds a majority share is required by UAE commercial law.

A local sponsor can be a service agent or a silent partner, providing valuable insights into the legal framework and facilitating networking within the country.

Securing a dependable local sponsor can be challenging, and the prospect of sharing a majority stake can be daunting. Engaging in a business setup consultancy can assist in finding a trustworthy sponsor, allowing you to maintain operational control while benefiting from their expertise.

Crafting a Business Plan

A comprehensive business plan is the backbone of any successful restaurant venture, especially in a competitive market like Dubai. It acts as a detailed blueprint, outlining every aspect of restaurant management and operations, from the initial concept to the financial projections. This plan not only helps turn your ideas into a tangible reality but also convinces potential investors of the viability of your restaurant.

Outlining Your Restaurant Concept

The first step in crafting your business plan is to define the restaurant concept. This includes the type of restaurant you envision, the service style, and the atmosphere you’re aiming to create. Whether you’re leaning towards a luxurious fine-dining establishment or a casual eatery, the concept should reflect your personal interests or experiences and resonate with the target demographic .

You’ll need to research the local market and competition to ensure your restaurant offers a unique dining experience that fills a niche in Dubai’s culinary scene. Your restaurant’s identity, shaped by the cuisine and the overall execution, is key in setting it apart from competitors. The executive summary of your business plan should encapsulate this identity, summarising the proposed concept development, cuisine selection, and the anticipated costs and returns on investment.

Creating a Financial Projection

Financial analysis is the most critical component of your business plan. It should provide a clear picture of the initial investment, ongoing operational costs, and projected revenue . This section must be meticulously detailed, offering investors a sense of security in the financial viability of your restaurant.

It’s important to consider all potential expenses, from the cost of ingredients to staff salaries and rent for your chosen location. Analysing neighbourhood demographics is crucial to ascertain whether the local population will be receptive to your restaurant’s concept and cuisine.

The design of your restaurant should also be included in the business plan, showcasing your vision for the space and how it complements the dining experience you’re aiming to provide.

Setting Short and Long-Term Goals

Establishing clear short and long-term goals is crucial for the strategic growth of your restaurant . Short-term goals typically span 12 months and include immediate steps such as launching the restaurant, building a customer base, and establishing operational efficiency. Long-term goals, on the other hand, are more strategic and may take several years to achieve.

These could involve expanding the business, diversifying the menu, or opening additional locations in Dubai. Goals should be SMART – Specific, Measurable, Attainable, Relevant, and Time-related – to ensure they’re realistic and achievable. Breaking down long-term goals into smaller, actionable steps can help maintain focus and momentum.

It’s also important to prioritise these goals to help organise resources effectively. As the market evolves, you’ll need to regularly review and update your goals to stay aligned with the changing dynamics of Dubai’s restaurant industry.

Choosing the Perfect Location

Factors to consider when picking a site.

The decision of where to establish your restaurant is pivotal and can significantly impact its success. With high-calibre establishments such as Trèsind Studio and Il Ristorante – Niko Romito setting benchmarks, your choice of location needs to be strategic.

Consideration of your intended clientele is paramount in this decision, as it directly influences the potential for profit. The ease of access to your venue, whether by public transportation or parking availability, is also a critical factor that can influence customer turnout .

Proximity to vendors can affect operational costs and the quality of your offerings. An area’s food and safety department and crime statistics can influence public perception and their likelihood to patronise your establishment. Compliance with local business regulations, including zoning and health codes, is also a non-negotiable factor that varies by location.

Ensuring that the chosen site aligns with your financial constraints is essential, balancing cost-effectiveness with the necessary attributes for a successful operation.

Renting vs. Buying Property

The choice between leasing and purchasing a space for your restaurant hinges on your financial capacity and strategic vision. Leasing may offer greater adaptability and reduced initial expenditures, which can appeal to industry newcomers. Conversely, ownership could lead to cost savings over time and provide a stable venue .

Considering shared spaces such as food courts or food truck parks may present more economic opportunities and a platform to cultivate a following with less capital required. The premises must also accommodate the requisite kitchen equipment storage facility and dimensions, adhering to the standard space allocation for patrons.

Proximity to Suppliers and Traffic Flow

Establishing a location near your suppliers can streamline operations and minimise expenses, a critical consideration in Dubai’s competitive landscape. Forging partnerships with local vendors can ensure a steady stream of fresh products, a cornerstone for many of Dubai’s successful dining spots.

Understanding the patterns of pedestrian and vehicular flow is essential for selecting a location. High footfall areas can enhance visibility and naturally attract patrons, while congested zones may deter potential customers. Analysing these patterns can inform optimal space utilisation and enhance the patron experience.

Employing technologies for monitoring and analysing traffic data can provide insights into customer behaviours and preferences. These tools can assist in determining the most advantageous positioning for your restaurant and optimising its layout to accommodate customer flow efficiently.

Launching Your Restaurant

Hiring skilled staff and training.

The hospitality sector in the UAE is renowned for its abundant job opportunities, ranking third worldwide. Building a dedicated team is crucial for a restaurant’s success, particularly in a market known for its high staff turnover. Careful evaluation of staffing requirements is necessary, involving department heads to ensure alignment with both budget and operational needs.

Diverse recruitment channels, including social media, job portals, and hospitality schools, can attract a broad range of applicants. The selection process is vital to find individuals whose ambitions are in sync with the restaurant’s direction. A transparent hiring approach can lead to a more committed workforce. Introducing a cloud-based POS system can aid in managing staff performance and establishing a reward system to incentivise excellence.

Marketing and Promotion Strategies

With a significant number of restaurant transactions in the UAE occurring online , it’s imperative for establishments to have a presence on food apps, which have seen a steady increase in delivery services. A cloud-based POS system can optimise order management and enhance customer satisfaction by streamlining service.

Innovative marketing efforts should utilise the latest technologies and tap into prevailing health trends to attract a diverse clientele. Introducing unique offerings and creating a distinctive environment can also contribute to a restaurant’s popularity. Engaging social media platforms, such as Instagram, with shareable content can help in creating viral moments that attract customers.

Planning a Memorable Grand Opening

The initial launch can be instrumental in shaping a restaurant’s trajectory. A soft opening allows for operational fine-tuning, while the subsequent grand opening should be an event that generates buzz and excitement.

Engaging local influencers and media can amplify the restaurant’s presence. Collaborating with community organisations can strengthen local connections and enhance the establishment’s image . Offering incentives and leveraging social media for promotions can increase attendance and the restaurant owners’ visibility.

Allocating resources wisely for the grand opening, including marketing, food, and entertainment, is essential for a successful launch. The aim is to leave a strong impression that celebrates the opening and sets the stage for long-term success.

Ready to Make Your Mark?

Embarking on your restaurant journey in Dubai’s bustling culinary landscape requires gusto and discernment. From pinpointing the right trends to tapping into the diverse tastes of a global audience, success lies in the detail.

But remember, the city’s towering skyline started with a blueprint — your meticulous business plan is no different. As Dubai continues to unfold new pages in its gastronomic story, it’s prime time to etch your signature dish onto this vast menu of opportunities.

With your finger on the pulse of legal nuances, a perfect locale, and a grand opening strategy set to dazzle, you are now equipped to turn the emirate’s diners into your loyal patrons. Unleash your culinary vision; Dubai is waiting to savour your flavour. Bon appétit and best of luck on your exciting new venture!

How much does it cost to open a restaurant in Dubai?

• Opening a restaurant in Dubai requires significant financial resources. The costs vary greatly depending on several factors but include fixed startup costs like fit-out contractor fees (flooring, AC, signage, wall modifications), kitchen equipment, furniture, fixtures, equipment, and coffee, juice, bar, and buffet equipment. Operational startup costs include licences and government approvals, rent and occupancy costs, employee registration and accommodation costs, salaries, initial inventory budget, and advertising and marketing budget. An estimated budget for opening a restaurant in Dubai is around AED 790,000-800,000​​​​​​​​.

How can I start a small food business in Dubai?

• Deciding on the business activities and company structure (LLC, sole proprietorship, etc.).
• Reserving a trade name that complies with regulations.
• Registering the company with the relevant authority.
• Obtaining the necessary licences and additional business permissions.
• Creating an attractive and user-friendly website.
• Choosing the right platform for customer engagement.
• Planning logistics for food storage and delivery.
• Implementing effective digital e-commerce marketing​​​​​​​​​​​​​​.

Do I need a licence to sell food in Dubai?

• Yes, obtaining a food licence is mandatory for anyone looking to start a food business in Dubai. This involves registering the company and then applying for a food licence from the Dubai Municipality. The application requires documents such as a trade licence, food safety plan, and health card. The food business must also have a genuine trade licence from the government authorities before establishment​​​​​​​​.

Do I need a sponsor to open a restaurant in Dubai?

• The need for a local sponsor in Dubai depends on the location of your restaurant. Suppose you choose to open your restaurant in the mainland area. In that case, you will need a local sponsor or Local Service Agent (LSA) who is a UAE national. This sponsor represents your company in dealings with the government, and you must allocate 51% of your company to them. However, suppose you opt to open your restaurant in a free zone. In that case, you can own 100% of the company without requiring a local sponsor​​​​​​.

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How to Open a Restaurant Business in Dubai?

A Complete Guide to Starting a Business in Dubai’s Restaurant Market – From Concept to Location, Pricing, Establishment in Free Zones or Mainland, Licensing Type, to Business Plan and Marketing.

We will walk through the essential steps to conceptualize, develop, and open a restaurant in Dubai, ensuring you are prepared to satisfy the palates of a diverse and demanding international clientele in this vibrant culinary hub.

From researching current food trends to understanding the nuances of the local market and navigating Dubai’s legal landscape, this initiative requires creativity, precision, and a well-structured business plan.

Dubai’s Restaurant Market and Current Food Trends Research

Dubai has transformed into a global culinary hub, hosting a diverse food industry with over 13,000 establishments serving more than 200 nationalities. To stand out in this competitive market, you need to understand and adopt current food trends. Chefs like Reif Othman, who are at the forefront of culinary innovation, emphasize the importance of creativity and consistent quality.

Asian cuisine, particularly Japanese and sushi, is becoming increasingly popular, and this trend is expected to continue. Additionally, there is a growing focus on sustainability, with chefs like Andy Toh from Hakkasan focusing on local and organic products. This shift towards sustainability is becoming an integral part of Dubai’s economic development and food industry.

Identifying Your Target Audience

The success of a restaurant in Dubai heavily depends on identifying and attracting the right target audience. This requires a deep understanding of the demographics, psychographics, and behaviors of potential customers. The target audience for a restaurant is a specific segment of the broader restaurant market, characterized by various attributes such as age, gender, income, and personal preferences.

Analyzing Competitors’ Success Stories

Understanding the competition is crucial for establishing a niche in a city with a high density of restaurants. Dubai alone has 9,189 restaurants, making the industry extremely competitive. By analyzing successful competitors, restaurateurs can gain valuable insights into effective business practices and pricing strategies.

Navigating Dubai’s Legal Landscape

Understanding the legal provisions is essential for initiating a restaurant or food service license in Dubai. Compliance with the “Food Code” is mandatory to ensure food safety from production to consumption, thereby maintaining the high standards of the industry.

Before opening your restaurant, it is imperative to have a team of trained professionals to manage the establishment according to local regulations. This is crucial for the smooth operation of your business and avoiding legal complications.

Two main licenses are required: a food license from the Food Safety Department and a commercial license, which requires various documents, including a No Objection Certificate for the food trade license and a trade license for conducting business activities. If you decide to include alcohol in your offerings, additional licenses are necessary.

The process of obtaining an alcohol license is stringent, with a 30% tax imposed on alcohol sales. Additional fees are also applicable for alcohol permits for import and sale. The application for this license involves specific procedures with licensing authorities.

Understanding Local Food Safety Regulations

Your restaurant’s infrastructure must comply with strict rules. Kitchens must occupy a significant part of the total space. If you include a tandoor, it must meet specific dimensions. Adequate ventilation systems are necessary to prevent smoke buildup, with chimneys exceeding the height of adjacent structures.

The food control department must ensure that interior surfaces are designed for cleanliness and safety. The establishment must include designated areas for different food preparation processes and sufficient storage spaces for various food categories.

Rules also dictate the installation of drainage systems, which must maintain a specified distance from walls to prevent contamination.

Considering Partnership with a Local Sponsor

For foreign entrepreneurs, selecting the right location is crucial. While some free zones and commercial areas offer complete ownership without the need for a local sponsor, they limit the business to specific areas. On the mainland, where restaurants often thrive, UAE commercial law requires a local sponsor who holds a majority of shares.

A local sponsor can be a service agent or a silent partner, providing valuable insights into the legal framework and facilitating contact networks in the country.

Finding a trustworthy local sponsor can be challenging, and the prospect of sharing a majority of shares can be daunting. Collaborating with a business organization consultancy can help find a reliable sponsor, allowing you to maintain operational control while benefiting from their expertise.

Creating a Business Plan

A comprehensive business plan is the backbone of any successful restaurant initiative, especially in a competitive market like Dubai. It serves as a detailed blueprint, outlining every aspect of managing and operating the restaurant, from the initial concept to financial projections. This plan not only transforms your ideas into tangible reality but also convinces potential investors of your restaurant’s viability.

Obtaining Necessary Licenses and Permits

Understanding legal provisions is essential for initiating a restaurant or food service license in Dubai. Compliance with the “Food Code” is mandatory to ensure food safety from production to consumption, thus maintaining the high standards of the industry.

The process of obtaining an alcohol license is stringent, with a 30% tax imposed on alcohol sales. Additional fees are also applicable for alcohol permits for import and sale. The application for this license involves specific procedures with the licensing authorities.

Your restaurant’s infrastructure must adhere to strict rules. Kitchens must occupy a significant portion of the total space. If you include a tandoor, it must meet specific dimensions. Adequate ventilation systems are necessary to prevent smoke buildup, with chimneys exceeding the height of adjacent structures.

The rules also dictate the installation of drainage systems, which must maintain a specified distance from walls to prevent contamination.

For foreign entrepreneurs, selecting the right location is crucial. Although some free zones and commercial areas offer complete ownership without the need for a local sponsor, they limit the business to specific areas. On the mainland, where restaurants often thrive, UAE commercial law requires a local sponsor who holds a majority of shares.

A local sponsor can be a service agent or a silent partner, offering valuable insights into the legal framework and facilitating contact networks in the country.

Securing a trustworthy local sponsor can be challenging, and the prospect of sharing a majority of shares can be daunting. Collaborating with a business organization consultancy can help find a reliable sponsor, allowing you to maintain operational control while benefiting from their expertise.

Defining the Restaurant Concept

The first step in developing the business plan is defining the restaurant concept. This includes the type of restaurant you envision, the style of service, and the atmosphere you wish to create. Whether you lean towards a luxurious fine dining establishment or a casual locale, the concept should reflect your personal interests or experiences and result in the target audience.

You will need to research the local market and competition to ensure your restaurant offers a unique dining experience that occupies a niche in Dubai’s culinary scene. Your restaurant’s identity, shaped by the cuisine and overall execution, is key in differentiating it from competitors. The executive summary of the business plan should encapsulate this identity, summarizing the development of the proposed concept, the selection of cuisine, and the anticipated costs and returns on investment.

Creating Financial Projections

Financial analysis is the most critical component of your business plan. It should provide a clear picture of the initial investment, ongoing operational costs, and projected revenues. This section needs to be meticulously detailed, offering investors a sense of security in the financial viability of your restaurant.

It is important to consider all potential expenses, from the cost of ingredients to employee salaries and rent for the chosen location. Analyzing the neighborhood demographics is crucial to ensure that the local population will be receptive to the concept and cuisine of your restaurant.

The design of your restaurant should also be included in the business plan, presenting your vision for the space and how it complements the dining experience you aim to offer.

Setting Short-Term and Long-Term Goals

It is crucial to establish clear short-term and long-term goals for the strategic growth of your restaurant. Short-term goals typically cover the first 12 months and include immediate steps such as launching the restaurant, building a customer base, and establishing operational efficiency. Long-term goals are more strategic and may take several years to achieve.

These might involve expanding the business, diversifying the menu, or opening additional locations in Dubai. Goals should be SMART – Specific, Measurable, Achievable, Relevant, and Time-bound – to ensure they are realistic and attainable. Breaking down long-term goals into smaller, actionable steps can help maintain focus and momentum.

It is also important to prioritize these goals to efficiently organize resources. As the market evolves, you will need to regularly review and update your goals to stay aligned with the changing dynamics of Dubai’s restaurant industry.

Choosing the Perfect Location

Factors to Consider When Choosing a Location

The decision regarding the location where you will establish your restaurant is crucial and can significantly influence its success. With high-quality establishments like Trèsind Studio and Il Ristorante – Niko Romito setting the standards, your choice of location must be strategic.

Defining your clientele is paramount in this decision, as it directly influences profit potential. Ease of access to your location, whether through public transport or the availability of parking, is also a critical factor that can influence customer inflow.

Proximity to suppliers can affect operational costs and the quality of your offerings. Statistics regarding food safety and crime in an area can influence public perception and their likelihood of frequenting your establishment. Compliance with local business regulations, including zoning and health codes, is also a negotiable factor that varies by location.

Ensuring that the chosen location aligns with your financial constraints is essential, balancing cost-effectiveness with the necessary attributes for successful operation.

Renting vs. Buying Property

Choosing between renting and buying a space for your restaurant depends on your financial capacity and strategic vision. Renting can offer greater adaptability and reduced initial expenses, which can be attractive for those new to the industry. On the other hand, ownership can lead to long-term cost savings and provide a stable location.

Considering common spaces, such as food courts or parks for food trucks, can present greater economic opportunities and a platform to cultivate an audience with less required capital. The location must also accommodate the necessary facilities for kitchen equipment and adhere to the standard space allocation for customers.

Proximity to Suppliers and Traffic Flow

Establishing a location close to your suppliers can simplify operations and minimize expenses, a critical consideration in Dubai’s competitive landscape. Partnerships with local suppliers can ensure a steady flow of fresh products, a staple for many successful locations in Dubai.

Understanding pedestrian and vehicle traffic patterns is essential for selecting a location. Areas with high foot traffic can increase visibility and naturally attract customers, while congested areas can deter potential customers. Analyzing these patterns can inform optimal space usage and enhance the customer experience.

Using technologies to monitor and analyze traffic data can provide insights into customer behaviors and preferences. These tools can help in determining the most advantageous positioning for your restaurant and optimizing the layout to efficiently accommodate customer flow.

Launching Your Restaurant

Hiring Qualified Staff and Training

The hospitality sector in the UAE is renowned for its abundant job opportunities, ranking third globally. Building a dedicated team is crucial for the success of a restaurant, especially in a market known for high staff turnover. Careful evaluation of staffing needs is necessary, involving department heads to ensure alignment with the budget and operational requirements.

Diverse recruitment channels, including social media, job portals, and hospitality schools, can attract a wide range of candidates. The selection process is vital to find individuals whose ambitions sync with the restaurant’s direction. A transparent approach in hiring can lead to a more dedicated staff. Introducing a cloud-based POS system can help in managing staff performance and establishing a reward system to incentivize excellence.

Marketing and Promotion Strategies

With a significant number of restaurant transactions in the UAE conducted online, it is imperative for establishments to have a presence on food apps, which have seen steady growth in delivery services. A cloud-based POS system can optimize order management and improve customer satisfaction by simplifying services.

Innovative marketing efforts should utilize cutting-edge technologies and capitalize on current health trends to attract a diverse clientele. Introducing unique offers and creating a distinctive environment can also contribute to a restaurant’s popularity. Engaging social media platforms, such as Instagram, with shareable content can help create viral moments that attract customers.

Planning an Unforgettable Launch

The initial launch can be instrumental in shaping a restaurant’s trajectory. A soft opening allows for fine-tuning operations, while the grand opening should be an event that generates noise and excitement.

Engaging local influencers and the media can amplify the restaurant’s presence. Collaborating with community organizations can strengthen local ties and improve the establishment’s image. Offering incentives and using social media for promotions can increase participation and visibility for restaurant owners.

Wisely allocating resources for the grand opening, including marketing, food, and entertainment, is essential for a successful launch. The goal is to leave a strong impression that celebrates the opening and sets the stage for long-term success.

Are You Ready to Make Your Mark?

Launching into the adventure of your restaurant in Dubai’s effervescent culinary landscape requires courage and discernment. From identifying the right trends to leveraging the diverse tastes of a global public, success lies in the details.

But remember, the city’s towering skyline began with a plan – your meticulous business plan is no different. As Dubai continues to turn new pages in its culinary story, it’s the perfect time to inscribe your signature dish on this vast menu of opportunities.

With a base of legal knowledge, a perfect location, and a grand opening strategy ready to impress, you are now equipped to turn the emirate’s customers into your loyal clients.

For those ready to take the next step in opening a business, we are here to help! Schedule a free consultation to discuss your needs in detail and explore your options. Schedule your free online consultation here. Alternatively, if you prefer to contact us directly, feel free to send us an email at [email protected] or send a message on WhatsApp at +971525727097.

If you enjoyed this article, also check out “Establishing a Company in Dubai” or “ The Complete List of Dubai Free Zones ” or “ How to Start an E-commerce Business in UAE and Sell on Noon. ” Each of these resources can provide valuable information and guidance to enhance your business setup in the United Arab Emirates.

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• Posted on November 17, 2023
• By Shak Malik Muhammad Rishad

Overview Of Starting Restaurant Business In Dubai

Embarking on the venture of starting a restaurant business in Dubai is a thrilling journey brimming with opportunities and challenges. As a vibrant hub of diverse cultures and a global culinary destination, Dubai offers a fertile ground for culinary entrepreneurs seeking to establish their presence in the thriving food industry. This article serves as your […]

Embarking on the venture of starting a restaurant business in Dubai is a thrilling journey brimming with opportunities and challenges. As a vibrant hub of diverse cultures and a global culinary destination, Dubai offers a fertile ground for culinary entrepreneurs seeking to establish their presence in the thriving food industry.

This article serves as your compass, providing a comprehensive overview of the essential steps and insights involved in opening a restaurant in Dubai. From navigating licensing procedures to understanding the local market dynamics, join us on this expedition as we unravel the intricacies of turning your restaurant dream into a flavorful reality in the heart of Dubai.

What to Consider Before Starting a Restaurant Business in Dubai?

As you embark on the exciting journey of establishing a restaurant business in Dubai, a comprehensive understanding of key considerations becomes paramount for your venture’s success.

Firstly, navigating the labyrinth of licensing requirements is a pivotal step. The restaurant license cost in Dubai varies based on the type of license, location, and other specifics. This intricacy underscores the importance of thoroughly researching and budgeting for the various permits and approvals required to operate legally within the city.

Simultaneously, the process of restaurant setup in Dubai involves a myriad of factors. Choosing the right location is not just about foot traffic; it entails aligning with your target audience and complying with zoning regulations. This strategic decision lays the groundwork for your restaurant’s visibility and accessibility.

Delving into the local market dynamics is another critical consideration. Understanding the culinary preferences, dining habits, and demographics of your target audience helps fine-tune your restaurant concept. Conducting a thorough feasibility study aids in identifying gaps in the market and tailoring your offerings to meet specific needs.

Financial preparedness is key to a sustainable restaurant venture. Anticipating operational costs, including staffing, procurement, and marketing, ensures a realistic budget. Developing a comprehensive business plan is instrumental in outlining your financial projections, marketing strategies, and contingency plans.

By examining these considerations in detail, we aim to provide aspiring restaurateurs with practical insights and actionable advice. Whether you are navigating the intricacies of licensing or strategically selecting your restaurant’s location, each aspect plays a crucial role in shaping the success of your culinary enterprise in the dynamic and diverse landscape of Dubai.

Make Customers Happier with Better Service

Enhancing customer satisfaction is a cornerstone of success when venturing into the restaurant business in Dubai. Elevating your service quality not only fosters customer loyalty but also contributes to the overall reputation and success of your establishment. As you delve into the intricacies of how to open a restaurant in Dubai, prioritizing exceptional service is a strategic move that pays dividends.

Firstly, personalized service goes a long way in creating memorable dining experiences. Train your staff to actively engage with customers, understand their preferences, and cater to individual needs. This personalized touch establishes a connection that extends beyond the dining table.

Efficient communication is another vital aspect. Clear and concise communication, both within your team and with customers, ensures smooth operations. From order accuracy to addressing inquiries, effective communication actively contributes to a positive customer experience.

Timeliness is key in the fast-paced world of dining. Streamlining your processes, from order taking to food delivery, ensures prompt service. Implementing technology solutions, such as efficient POS systems, actively contributes to quicker turnaround times.

Quality control is non-negotiable. Consistently delivering high-quality food and beverages is a fundamental part of customer satisfaction. Regularly assess and refine your menu offerings, ensuring that each dish meets the standards that your customers expect.

Feedback mechanisms actively encourage customer engagement and provide valuable insights. Implementing customer feedback systems, whether through surveys or online platforms, allows you to actively gauge satisfaction levels and make data-driven improvements.

Businesses Must Obtain a License to Operate Legally

Within the bustling environment of the restaurant business in Dubai, obtaining the requisite licenses stands as a pivotal undertaking for fast-food establishments seeking both legal adherence and operational smoothness. As an integral facet of the city’s regulatory framework, businesses, particularly fast-food restaurants, must actively secure the appropriate licenses to ensure alignment with Dubai’s stringent laws and regulations.

Embarking on this regulatory journey demands a nuanced comprehension of the specific requisites tailored for fast-food restaurants Dubai. This entails a thorough examination of the type of license necessitated. It factors in considerations like the restaurant’s geographical location, scale, and the array of services it aims to provide.

The procedural aspect of obtaining licenses entails a series of active steps, demanding meticulous adherence to stipulated guidelines. Entrepreneurs in the fast-food sector need to proactively engage in the submission of all requisite documents, adhere rigorously to health and safety standards, and ensure seamless compliance with zoning regulations. The precision and timeliness of these steps become imperative not only for acquiring approvals but also for averting potential legal entanglements.

Collaboration with pertinent authorities emerges as a key strategy in expediting the licensing process. Establishing robust communication channels and actively seeking guidance from regulatory bodies represent proactive measures that ensure your fast-food restaurant harmoniously aligns with the city’s legal framework. This proactive stance not only streamlines the process but also mitigates the likelihood of encountering obstacles along the licensing journey.

Choosing The Right Place

Selecting the optimal location is a critical aspect of establishing a successful restaurant business in Dubai. This strategic decision involves a series of proactive considerations to ensure that the chosen site aligns seamlessly with the unique dynamics of the city’s culinary landscape.

First and foremost, entrepreneurs must actively assess the demographic profile of the area. Understanding the target audience, their preferences, and dining habits is instrumental in tailoring the restaurant’s concept to meet local demands. Conducting thorough market research actively contributes to informed decision-making, allowing for a strategic match between the restaurant’s offerings and the preferences of the surrounding community.

On the other hand, accessibility is another key factor that should be actively factored into the decision-making process. Choosing a location that is easily reachable and well-connected enhances the potential customer base. Proximity to popular landmarks, public transportation, and other businesses actively contributes to the convenience and visibility of the restaurant.

Moreover, considering the competitive landscape is imperative for the sustained success of a restaurant in Dubai. Entrepreneurs must actively analyze the presence of similar establishments in the vicinity and identify opportunities to differentiate their offering. This proactive approach enables the crafting of a unique value proposition that stands out in a crowded market.

Furthermore, understanding the zoning regulations and obtaining clarity on licensing requirements specific to the chosen location is a proactive step that ensures legal compliance. Collaborating with local authorities and actively seeking guidance on regulatory aspects safeguards the business from potential challenges in the future.

Equipment Cost is Important for Starting a Business

In the landscape of launching a restaurant business in Dubai, considering equipment costs is a cornerstone of the planning process. This imperative step requires a thorough and proactive approach, as the decisions made in this realm impact the overall budget. They also impact on the operational efficiency and long-term viability of the establishment.

Entrepreneurs initiating this journey must embark with a stance by compiling a list of the required equipment for their restaurant. This comprehensive inventory encompasses not only kitchen appliances but also extends to furniture, point-of-sale systems, and various other indispensable items. Through this detailing process, business owners can construct a precise budget, minimizing oversights and unexpected expenses during the setup phase.

Furthermore, engaging in research and obtaining multiple quotes from diverse suppliers becomes a strategic move to ensure cost-effectiveness. Entrepreneurs are encouraged to actively connect with suppliers, negotiate prices, and explore potential discounts or package deals. This approach not only contributes to immediate cost savings but also empowers entrepreneurs to make well-informed decisions.

Moreover, the consideration of equipment durability and quality is paramount for long-term success. Entrepreneurs must actively assess the expected lifespan of equipment, scrutinize warranty terms, and evaluate the reputation of suppliers. This ensures that the investment in equipment is cost-effective and aligns with the durability required for sustained and efficient operations.

On the other hand, actoring in maintenance costs represents another critical facet of this strategic consideration. Proactive planning for routine maintenance and potential repairs ensures the longevity and continual efficiency of the equipment. This helps preventing unforeseen expenses that may disrupt operations in the future.

If you are looking for more information about this and other related topics, do not hesitate to stop by our insights section

What is the Ideal Budget for a Dubai Restaurant in Business?

Crafting the ideal budget for a restaurant business in Dubai necessitates a meticulous strategy. The dynamic nature of the culinary landscape in this vibrant city requires it. Entrepreneurs venturing into the realm of restaurant ownership must consider various factors to ensure their financial plan aligns with the unique demands of Dubai’s competitive market.

Starting with a proactive stance, comprehensive market research becomes paramount. By delving into prevailing cost structures within the local restaurant industry, entrepreneurs gain invaluable insights. This helps enabling them to set a budget that reflects industry norms and anticipates potential challenges.

Moreover, counting for location-specific variables is a fundamental step in this process. Dubai’s diverse neighborhoods may present varying rental costs, utility expenses, and operational overheads. Entrepreneurs must actively assess and adapt to the specific demands and nuances of their chosen location. This ensures that their budget is finely tuned to the unique dynamics of the area.

Furthermore, the type and scale of the restaurant must be considered. Fine-dining establishments may have distinct budgetary requirements compared to casual or fast-food ventures. Contemplating the target audience, conceptual positioning, and scale of the restaurant informs decisions related to interior design and menu offerings.

On the other hand, engaging with suppliers and negotiating prices are integral components of developing an achievable budget. Entrepreneurs should adopt a good approach by exploring potential partnerships, seeking out discounts, and leveraging package deals. It helps contributing to cost efficiency. This strategic engagement with suppliers enables entrepreneurs to optimize their financial resources, ensuring prudent allocation across various operational aspects.

By following this steps, entrepreneurs can formulate a realistic and effective budget. This approach positions their establishment for not only financial stability but also success in navigating the dynamic and competitive culinary landscape of Dubai.

How to Choose the Right Location for Restaurant Business in Dubai?

Choosing the right location for a restaurant business in Dubai is a crucial decision that requires a strategic and proactive approach. Entrepreneurs entering the dynamic culinary scene of Dubai must consider several factors to ensure the success and visibility of their establishment.

First and foremost, entrepreneurs should assess the target market and demographics of the desired location. Understanding the preferences, habits, and behaviors of the local population enables a proactive selection of a location that aligns with the target audience, increasing the chances of success.

Moreover, researching foot traffic patterns is another key consideration. Entrepreneurs must analyze the flow of people in potential locations to identify areas with high footfall, ensuring visibility and accessibility for their restaurant. Proactively selecting a location with bustling pedestrian activity can significantly contribute to the success of the business.

Additionally, entrepreneurs should evaluate the competition in the chosen area. A thorough assessment of nearby restaurants, their offerings, and popularity enables entrepreneurs to make informed decisions about their restaurant’s positioning and unique selling points. This analysis helps avoid saturation in a particular market and allows for strategic differentiation.

On the other hand, considering the cost implications of the chosen location is essential. Entrepreneurs must evaluate rental prices, utility costs, and other overheads associated with specific areas. Striking a balance between a desirable location and budget constraints ensures a financially sustainable choice.

Furthermore, engaging with local authorities and understanding regulatory requirements is vital. Entrepreneurs should navigate through licensing procedures, zoning regulations, and other legal considerations to ensure compliance and the seamless operation of their restaurant.

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JSB Incorporation

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• November 15, 2023

Starting a restaurant business in Dubai, UAE, can be an exciting and lucrative venture. With its diverse culinary scene and a thriving economy, Dubai provides a fertile ground for entrepreneurs looking to make their mark in the food and beverage industry. In this comprehensive guide, we’ll walk you through the essential steps to help you set up your restaurant business successfully.

• Market Research: Before diving into the business, conduct thorough market research to understand the local food culture, target audience, and competitors. Identify gaps in the market and unique selling propositions that can set your restaurant apart.
• Business Plan: Develop a detailed business plan that outlines your restaurant concept, target market, menu, pricing strategy, and financial projections. A well-thought-out plan will be crucial when seeking investors or applying for business loans.
• Legal Requirements: Familiarize yourself with the legal requirements for starting a restaurant in Dubai. This includes obtaining the necessary licenses and permits from the Dubai Department of Economic Development (DED), the Food Control Department, and other relevant authorities.
• Choose a Location: Selecting the right location is crucial for the success of your restaurant. Consider factors such as foot traffic, accessibility, and proximity to popular attractions. Additionally, ensure that the chosen location complies with zoning regulations.
• Company Formation: Register your business with the appropriate authorities. Choose a business structure, such as a Limited Liability Company (LLC) or a Free Zone entity, based on your business requirements and preferences. Seek the assistance of a local business consultant to navigate the legal procedures efficiently.
• Finances and Funding: Determine your startup costs, including rent, interior design, kitchen equipment, staff salaries, and initial inventory. Explore financing options, such as bank loans, government grants, or partnerships with investors.
• Menu Development: Craft a menu that aligns with your target audience and culinary theme. Consider dietary preferences, cultural influences, and pricing strategies. Ensure that your menu complies with food safety and quality standards.
• Interior Design and Décor: Create an inviting and unique ambiance for your restaurant. Invest in interior design that complements your brand identity and enhances the overall dining experience for your customers.
• Hiring and Training: Recruit skilled and experienced staff for your restaurant, including chefs, waitstaff, and managerial positions. Provide thorough training to ensure that your team delivers excellent customer service and upholds the standards of your establishment.
• Marketing and Promotion: Develop a marketing strategy to promote your restaurant. Utilize social media, local publications, and partnerships with influencers to create buzz around your opening. Consider offering promotions or discounts to attract the initial customer base.
• Technology Integration: Embrace technology to streamline your restaurant operations. Implement a point-of-sale (POS) system, online reservation platforms, and a user-friendly website. Leverage digital marketing tools to enhance your online presence.
• Health and Safety Compliance: Prioritize health and safety measures in your restaurant. Adhere to food hygiene standards, train your staff on safety protocols, and undergo regular inspections to maintain compliance.

Conclusion:

Setting up a restaurant in Dubai involves careful planning, adherence to regulations, and a commitment to providing exceptional culinary experiences. By following these steps and staying informed about local business practices, you can turn your restaurant dream into a successful reality in the vibrant and dynamic city of Dubai. Good luck on your entrepreneurial journey!

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How to Start a Restaurant Business in Dubai (The Complete Guide)

How to start a restaurant business in Dubai: Starting & running a successful restaurant business in Dubai requires thorough planning, passion, and perseverance. In a diverse, competitive market like the UAE with a food-loving population of over 9 million, the stakes are even higher to get things right from the start.

This comprehensive guide will walk you through everything you need to know to start a restaurant business in Dubai, UAE, from developing a concept to profitability and beyond. With proper preparation and support, your culinary dreams can become a reality in this dynamic market.

How to Start a Restaurant Business in Dubai

Choosing a Restaurant Concept in Dubai

The very first step is determining what kind of restaurant you want to open. This decision will impact nearly everything that follows from location to menu to budget. Brainstorm concepts that meet important criteria:

• Passion – What cuisine and dishes excite you the most? Cooking should be a labor of love.
• Experience – Leverage your background. Have you run a restaurant before or trained with masters?
• Market – Research local dining trends and competition. Find gaps you can uniquely fill.
• Costs – Equipment, ingredients and build-outs vary by cuisine. Budget accordingly.
• Target market – Will you cater to residents, families, workers or tourists? This shapes location.
• Theme and design – Craft a cohesive guest experience through decor, music, lighting etc.

Avoid trying to be everything for everybody—find your niche. For example, maybe you’ll open a cozy Spanish tapas bar focused on local professionals looking for an after-work bite and drinks in a livelier setting.

Selecting a Location in Dubai

Location is absolutely crucial for any restaurant’s success. You want high visibility, pedestrian traffic, and easy access for your target customers. Analyze foot traffic patterns at different times of day along with parking and public transportation options.

Prime spots come with premium rent costs, so also consider up and coming areas with lower lease rates but rising appeal. Partnering restaurant setup consultants like ReCorporate can help narrow options through data analysis before making a commitment.

Key factors to evaluate potential restaurant locations on include:

• Nearby demographic – Proximity to dense residential areas, offices, or tourist zones with your clientele.
• Accessibility – Foot, vehicle and public transport access. Ample parking if needed.
• Visibility – Main roads or storefront space for branding exposure. Outdoor seating can also raise visibility.
• Proximity to hubs – Near malls, business centers, nightlife districts that generate foot traffic.
• Surrounding businesses – Clustering near like businesses (e.g. other restaurants) has pros and cons.
• Lease costs – Balance costs with revenue potential and growth over the long-term lease.
• Space requirements – Kitchen size, storage, front and back of house, any outdoor area.

An ideal location makes it convenient for hungry patrons to visit your restaurant often. Plot locations on a map overlaid with your target demographic patterns to identify hot spots.

Read: Start a General Trading Company in Dubai (Step-by-Step Guide)

Starting, Designing and Building Out Your Own Restaurant in Dubai

With a concept and location secured, now the fun begins of designing and building out your physical restaurant space. The layout, decor and functionality need to match seamlessly with the dining experience you envision.

• Kitchen design – Flow, equipment, ventilation and fire systems are crucial for culinary operations.
• Seating plan – Table configurations, bar, outdoor area, etc. should optimize guest flow and capacity.
• Ambience – Materials, lighting, acoustics, color scheme and decor shape the aesthetic.
• Fixtures – Counters, bars, kiosks, displays, signage and artwork reinforce brand.
• Technology – Integrate POS systems, kitchen displays, AV systems, WiFi and payments.

A seasoned restaurant architect can optimize everything from back of house efficiency to immersive guest experiences. Bring your vision to life while adhering to legal and safety regulations.

Tip: Build flexibility into the design to enable pivoting your concept in the future if needed. (Designing Tip to help you start a restaurant business in Dubai)

Obtaining Licenses and Permits

Like any business in the UAE, restaurants require various operational licenses and permits from Dubai’s Department of Economic Development and municipality before opening doors to the public.

• Trade license – Required to formally register your business activity. Additional approval may be needed depending on visa quotas.
• Food service permit – Allows you to operate as a food outlet including storage, preparation, cooking and serving.
• EHS approval – From the Dubai Municipality to ensure facilities meet health and hygiene standards.
• Liquor license – If serving alcohol, a permit issued by an alcohol regulatory authority is mandatory. Additional age checks on staff may apply.
• Civil defense approval – Includes fire safety systems, emergency exits, and equipment like kitchen fire suppression.
• Music copyright – Required for playing recorded music. Fees paid to rights organizations.

Failure to obtain appropriate documentation can result in heavy fines or worse, so engage experts like ReCorporate consultants to ensure full compliance. Apply for everything well in advance of intended opening.

Hiring and Training Staff for Restaurant Business

The service team you build is crucial to delivering top-notch experiences. Invest time upfront to recruit talented chefs, servers, bartenders and support staff.

• Recruit locally – Leverage Dubai’s skilled international talent pool using specialist recruiters.
• Visit job fairs – Hotels and culinary institutes hold regular recruitment fairs.
• Post online – List openings on dedicated hiring sites and hospitality groups.
• Referrals – Reach out to your personal and professional networks.
• Look for experience – For head chef and manager roles, seek those with proven restaurant success. Offer attractive packages.
• Host open interviews – When volume hiring for servers, bartenders etc. pre-screen then directly meet shortlisted candidates in person.

Once hired, intensive training across both knowledge and service skills ensures staff master your systems, menus, brand standards before opening. Simulate real service scenarios.

Tip: Partner with hospitality consultants to source and onboard talent efficiently while optimizing budgets. Partnering with hospitality consultants or HR consultancies to hire qualified great professional staff can actually help you and bring success in starting a restaurant business in Dubai.

Read: 100+ Successful Business Ideas in Dubai, UAE

Creating a Menu

Crafting the perfect menu deserves meticulous attention. This influences everything from your brand to kitchen operations and profitability.

• Concept – Let your core cuisine and themes shape directions. Identify 2-3 specialties to build around.
• Offerings – Balance appetizers, mains, desserts, and beverages. Include vegetarian, gluten-free and kids options.
• Ingredients – Sourcing quality ingredients is paramount. Local and seasonal is preferable. Calculate costs.
• Prices – Price dishes based on costs, competition, and target market. Avoid overly complex pricing.
• Presentation – Layout, photos, and descriptions should look polished and align with brand image.
• Printing – Invest in high quality menu printing and display at tables, bars and entry areas. Update seasonally.
• Analysis – Continuously monitor bestselling and high-margin items to refine the menu and pricing over time. Popular limited-time offers can also boost visits and spending.

The menu sets the tone for the entire guest experience. Put your best fork forward!

Tip: Collaborate with a professional graphic designer and printer to create aesthetically appealing, durable menus. An attractive menu is the very first thing that a visitor / customer will look at, as soon as visiting your restaurant. So, creating a menu is truly going to be a key to start a successful profitable restaurant business in Dubai.

Setting up an Inventory Management System

A key process that underpins smooth operations is having an efficient inventory management system to track all food, beverages, and supplies. This helps optimize costs and prevent shortages.

• Recipes – Maintain detailed recipe cards for every menu item including precise ingredient quantities required.
• Usage – Closely link your POS and reservation systems to forecast demand and ingredient needs.
• Ordering – Input supplier order guides into the system for easy re-ordering based on dynamic stock levels.
• Receiving – Log all incoming inventory with expiry dates into the system when it arrives.
• Storage – Use shelf management tactics like FIFO (first-in, first-out) to rotate ingredients.
• Alerts – Set automatic reorder points and minimum stock alerts to stay on top.
• Controls – Institute measures like staff access limits to prevent pilferage and waste.

An integrated digital system makes managing thousands of food and supply inventory items effortless. This keeps the kitchen running smoothly and improves profitability.

Tip: Build 5-10% overage into initial inventory budgets to allow for spoilage, errors and menu testing when starting up . Creating and having an efficient inventory management system is highly important to start a restaurant business in Dubai, in order to sustain in the market successfully.

Building a Website and Online Presence

A professional website and online presence are necessities to connect with modern diners and drive bookings. Your site should bring branding to life and make the user experience intuitive.

• Visuals – Showcase high quality food, ambience and people photos. Constantly add new images.
• Menus – Feature online menus with photos for easy browsing from anywhere.
• Contact – Email signup, simple booking/reservations form or integration with a booking system.
• Location – Embed a map with directions info and parking details.
• Story – Share your culinary inspirations, chef backgrounds and service approach to build rapport.
• Social media – Link to your Instagram, Facebook, Twitter accounts. Encourage reviews.
• SEO – Use relevant keywords, meta descriptions and alt text for search visibility.
• Mobile – Ensure fast load times and mobile responsiveness. An app can also boost engagement.

With a polished online presence, guests will get a preview that compels them to visit in person. Maintain and update content frequently to attract repeat website traffic.

Read: How to Start an E-Commerce Business in Dubai, UAE

Tip: Invest in professional web design skills, not just a basic templated site. This is your digital flagship. If you’re planning to start your own restaurant business in Dubai, then you must start building your online presence by having a website and also on as many social media platforms as possible. Let it be Facebook, Twitter, Instagram or any other social media platform, your online presence, visuals, videos, menus, contact information and everything should be available online for having a successful restaurant business in Dubai.

Restaurant Marketing and Promotions

Getting the word out about your new restaurant is imperative to drive foot traffic, especially in your first year. Leverage both paid initiatives and organic outreach across channels.

• PR launch – Host a press/media opening event to generate buzz.
• Influencer marketing – Invite select foodie influencers for a complimentary tasting and potential reviews.
• Paid ads – Test paid search and social media ads focused on your neighborhood and city.
• Partnerships – Offer discounts or co-promotions with nearby businesses like hotels.
• Happy hour – Promote daily early evening happy hour deals to attract after-work crowds.
• Loyalty program – Offer perks like a free dessert on your birthday for repeat visits.
• Holiday specials – Craft themed menus and events for occasions like Diwali, Christmas, Ramadan etc.
• Email list – Send promotions like weekend brunch invites to customer email subscribers.

Stretch marketing dollars through owned channels, community partnerships and PR outreach for sustainable awareness. Monitor performance to double down on truly effective tactics.

Tip: Stay nimble and test creative guerilla marketing like food truck sampling to generate buzz. Again, as online presence for your restaurant business in required, just like that marketing and promotions are highly indispensable for your restaurant business to run successfully in Dubai. Though one needs to focus on the word of mouth advertisement, however, influencer marketing, advertising, email marketing and other marketing ways are also extremely important.

Read: How much does it cost to set up a free zone company in Dubai?

Financial Planning and Funding

Creating a solid business plan and securing sufficient funding are make-or-break steps to turn your concept into reality. Thoroughly build out these financial foundations:

• Estimating costs – Factor in all pre-opening and operating expenses. Don’t overlook small costs that add up.
• Sales forecasts – Base projections on location potential, market demand, competition and your capacity.
• Profit/loss – Map out expected profitability month-by-month factoring seasonal fluctuations.
• Cash flow – Understand timing gaps between upfront outlays and eventual sales inflows.
• Funding – Explore financing like bank loans, investors, and government small business grants. Have contingency funds.
• Accounting software – Install cloud-based accounting software to manage taxes, reporting and filings.

Conservative budgeting is wise as unexpected costs and delays often crop up. An experienced restaurant accounting advisor provides objective insights on setting financial foundations.

Tip: Build extra buffers into your working capital, especially for the first year. This helps weather unforeseen expenses. We never know what expense is going to come when suddenly from where. So, we need to be prepared for anything and everything. There are a lot of miscellaneous expenses that come in a new business. To start a restaurant business in Dubai, you need to do financial planning accordingly.

Managing Operations and Growth

With preparations complete, opening day arrives! This is only the start of the journey though. Running a smooth operation day-to-day, delighting guests, and facilitating growth take consistent hands-on management.

• Quality control – Personally inspect ingredients, presentation and service regularly to maintain standards.
• Customer feedback – Monitor reviews and suggestions. Empower staff to address issues immediately.
• Staffing needs – Closely track peak periods and have additional flexible part-time staff to plug gaps.
• Performance – Keep sales, traffic, customer metrics and marketing ROI organized for performance tracking.
• Technology – Continuously look for ways to leverage tech to improve efficiency, reduce waste and boost data-driven decisions.
• Expansion – If outcomes are strong, consider expanding to more outlets across Dubai or into catering and delivery.
• Sustaining passion – Stay energized and inspired everyday. Make time to innovate the menu, decor and offerings.

Rest on your laurels and standards can slip. The best restaurants never stop striving to improve across everything from food quality to ambience to service efficiency.

Tip: Schedule regular management offsites to discuss enhancements away from daily distractions. Management’s success is the success of a business. Hence, to have a successful restaurant business in Dubai, focus on the management.

Turning Your Culinary Passion into a Thriving Restaurant in the UAE

Starting a restaurant business in a competitive market like Dubai, UAE requires careful planning, resilience and passion. But the rewards of welcoming delighted guests everyday make the effort well worth it. By following this guide and enlisting help from experts like ReCorporate consultants , your concept can become a celebrated dining destination.

Read: How to get a Freelance Visa in Dubai

Some key lessons to remember are choosing your niche thoughtfully, obsessing over each component of the guest experience, hiring the right team, and managing finances prudently. Stay nimble to keep exceeding diner expectations as you grow.

The UAE’s dynamic food scene is open for your next success story. Bring your vision to life!

So, as you know how to start a restaurant business in Dubai, you’re all set to go. If you need our assistance, our qualified business setup professionals are right there to help you setup your restaurant business in Dubai. Please feel free to get in touch with us and book your free business consultation.

ReCorporate Dubai

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How To Open A Restaurant In Dubai [2024 Guide]

• February 22, 2024
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Table of Contents

Dubai, famous for its luxury and diverse people, is a great place for food lovers and business-minded individuals. The city’s exciting and varied food culture offers a perfect opportunity for new business owners to open a restaurant in Dubai. By opening a restaurant, you are doing more than just opening a business, you are creating a unique dining experience in a city known for its international flavors.

Why set up a restaurant business in Dubai?

Here are five compelling reasons to start a restaurant business in Dubai.

1. Rapid Growth of Dubai Culinary Scene

Dubai stands as an important hub in the Middle East for the food and beverage industry, making it the second-largest sector in the UAE. A report highlights Dubai’s competitive edge in the global food and beverage landscape, underscoring its expansive restaurant network.

2. Rising Population and Tourist Flow in Dubai

Dubai’s dynamic lifestyle often leads residents and tourists alike to frequent restaurants. This trend greatly supports the expansion of restaurant businesses in the city. Tourists, whether exploring Dubai’s rich cultural heritage or enjoying the beaches at Jumeirah, eventually depend on local restaurants for their daily meals.

3. World-Class Infrastructure

Dubai boasts infrastructure that meets international standards, including modern facilities and architectural marvels. Key attractions like the Dubai Mall, the world’s largest shopping center, and City Walk Mall in Jumeirah, famous for its Michelin-starred dining options, are prime examples. The city offers numerous ideal locations for establishing a restaurant.

4. Simplified Licensing Procedures

Obtaining a restaurant license in Dubai is straightforward. While acquiring an alcohol license involves a specific process and additional fees, it remains accessible.

5. Effortless Business Setup Process in Dubai

Establishing a business in the UAE, particularly in Dubai, is a streamlined and efficient process when following the correct procedures. A variety of business types are available for selection.

How to get a License for a Restaurant in Dubai?

Here is the simple process to get a license for a restaurant in Dubai:

Step 1 : Choose Business Activity

Clearly define your restaurant’s business activities, including the type of cuisine, dining experience (fine dining, casual, fast food), and any additional services like delivery or catering. This step is important for obtaining the right licenses and permits. Ensure your chosen activities align with Dubai regulations and market demands.

Step 2 : Select Jurisdiction

The next thing to do when starting your restaurant is to pick the jurisdiction (Mainland or Free Zone) where you want to set it up. You should choose the one that allows the activities that are best for your business.

Step 3 : Select a name for the Restaurant

Choosing a name for your restaurant is an important step as it reflects your brand identity and cuisine style. Ensure the name is unique, culturally sensitive, and aligns with Dubai naming agreements. Avoid names that could be considered offensive or that resemble existing.

Step 4 : Document Preparation and Submission

Fill out the application form for a new business with accuracy, providing all required personal and business details. Attach all necessary documents, such as your business plan if applicable and passport copies of shareholders. RFZ Corporate Service Provider will submit all the documents and await their initial approval before proceeding to the next steps.

Step 5 : Obtain License and Approval

Next, you need to get your business license issued by the authority depending on your selected jurisdiction. After that, you will need to get approval by the Dubai Municipality department to start your restaurant in Dubai.

Documents required to open a restaurant in Dubai

To obtain a Restaurant License, you need to provide the following documents:

• A copy of primary approval from the Department of Economic Development (DED) .
• If applicable, an interior design layout of the restaurant premises.
• Passport copy of the investor
• Visa copy of the investor
• 2  passport sized photographs

Cost of opening a restaurant in Dubai

To open a restaurant in Dubai can be a considerable financial undertaking, but the restaurant license cost in Dubai varies widely depending on several factors. Securing the necessary licenses and permits, particularly from the Dubai Municipality and the Food Safety Department, is another financial aspect to consider. This process involves various fees, depending on the type of license and permissions required.

One of the primary expenses is the rental cost for the space, which can differ based on the area and the size of the property. Additionally, the interior design and kitchen setup, which encompasses both the dining area and the kitchen equipment, represent a considerable portion of the initial investment.

Moreover, staffing costs, which include salaries, training, and uniforms, form a significant part of the operating budget. Marketing and advertising expenses to launch and maintain the restaurant’s presence in Dubai competitive dining scene should also be considered.

Key Considerations Before Starting a Restaurant in Dubai

Here is what you should consider when starting a food business in Dubai.

• Conduct Thorough Research
• Develop a proper Business Plan
• Consider the Costs
• Decide on the Theme and USP
• Hire Skilled Staff
• Focus on Eye-Catching Interior Design
• Implement Regular Audits

FAQ’s

Q1. what is the food code in dubai.

Ans: The food code in Dubai is a comprehensive set of standards and regulations established by the Dubai Municipality to ensure food safety and hygiene. It covers a wide range of practices, from food handling and storage to staff hygiene and facility maintenance. Compliance with this code is mandatory for all food-related businesses, including restaurants.

Q2. What Type of Certificate Is Required to Open a Restaurant in Dubai?

Ans: To open a restaurant in Dubai, you need to obtain a Food License from the Dubai Municipality, along with a Trade License from the Department of Economic Development. Additionally, all staff handling food must have valid Food Safety Training certificates, ensuring they understand the local food hygiene and safety regulations.

Q3. What are the costs to consider before opening a restaurant in Dubai?

Ans: Opening a restaurant in Dubai requires considering costs such as rental expenses, which can vary greatly depending on location, licensing and legal fees, and the cost of kitchen equipment and interior décor. Staff salaries, utility bills, and marketing expenses also form significant parts of the budget. It is essential to factor in the high cost of living and operating a business in Dubai.

Q4. What are some of Dubai’s best places to set up a restaurant?

Ans: Popular areas for setting up a restaurant in Dubai include Downtown Dubai, known for its high foot traffic and proximity to landmarks like the Burj Khalifa. Jumeirah and Dubai Marina are also desirable due to their affluent demographics and scenic views.

Starting a restaurant in Dubai is a great opportunity for food and business enthusiasts. With its cultural diversity, Dubai is perfect for introducing new eateries. To succeed, focus on getting the right licenses, designing a standout menu, and understanding the local market. It is a competitive but rewarding venture.

Apply Your Restaurant Business License in Dubai With RFZ

If you are planning to open a restaurant in Dubai or obtain a license, a trusted Corporate Service Provider, RFZ is the best choice!

Our experienced team. We will give you trustworthy advice at every step of your business journey in the UAE. Are you ready to make your business dreams a reality? Partner with RFZ , and let us do it together.

For a free consultation, contact us at +971 4 589 0815. You can also send us a WhatsApp message at  +971 4 589 0815  or email your questions to [email protected]. We are here to assist you!

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How to Start a Restaurant Business in Dubai? A Comprehensive Guide

• 19 March, 2024

Dubai has risen as one of the world’s most diverse food markets, this is because of its majority population of expatriates. This along with its status of being a global tourist destination has led to the addition of tens of thousands of new food businesses in the past few years.

In the last year, more than 2500 restaurants started in the UAE, and with the influx of more foreigners, that number is expected to grow exponentially in the coming years.

With this information now known, it is clear that starting a restaurant business in Dubai could be a great investment decision. In this blog, we will guide you through the process of setting up a restaurant business in Dubai. 

A thrilling opportunity to go into one of the most dynamic culinary landscapes in the international arises when one unit out to discover ways to setup a restaurant business in Dubai. Given the metropolis’s recognition as a culinary melting pot, starting a restaurant business in Dubai with a clever plan can bring about scrumptious fulfillment. It’s an endeavor that requires creativity, skill, and a well-written business plan. From investigating cutting-edge meal developments to comprehending the subtleties of the neighborhood market and negotiating Dubai’s food market and landscape. We will guide you via the crucial procedures concerned with conceptualizing, developing, and starting a restaurant business in Dubai. Ensuring that you are prepared to meet the demands of discriminating and various international customers on this thriving culinary vacation spot. 

Is It Profitable to Setup A Restaurant Business in UAE?

Dubai’s business-pleasant surroundings, favorable regulations, and high increase possibilities for eating place organizations have positioned many new restaurateurs on the culinary map. Some first-rate traits within the enterprise are:

Dubai is a top international food vacation spot: With approximately 7 million vacationers journeying the town each year, there may be a big purchaser base for beginning a restaurant business and catering to various populations.

Growth possibilities in the area of interest markets: Changing patron preferences, including vegetarianism, veganism, and gluten-loose diets, have led to a shift within the restaurant enterprise. Niche markets like those are experiencing fast demand and presenting potential commercial enterprise possibilities. The 2018 Gulfood Global Outlook Report Health and Wellness Trends highlighted a boom in demand for organic, healthy, and environmentally-friendly meals .

Customer behavior: The population’s growing disposable income has caused an important boom in dine-out options and spending on recreational activities amongst residents of Dubai, particularly the more youthful demographic. Surveys have proven that consumers in the town are inclined to pay a top class for excellent food.

Partnership opportunities: There is a widespread increase capability of restaurant start-ups in Dubai through partnerships with hotels. As a famous vacationer vacation spot acknowledged for its hospitality, resorts are more and more seeking to collaborate with restaurants to enhance the overall visitor revel and offer a complete hospitality imparting.

Steps to Opening a Restaurant in Dubai

Starting a restaurant business in a Dubai freezone region is a trustworthy and green procedure. The process of start a restaurant business in Dubai may be finished with minimum paperwork following steps:

1. Selecting the jurisdiction

The first step in setting up your restaurant business in Dubai is selecting the jurisdiction. Three free zones in Dubai assist you in starting your restaurant business, each offers different activities suitable for your business, and each offers different activities suitable for your business.

2. Obtaining food and trading license

After deciding on your preferred jurisdiction, the subsequent step is to achieve the required licenses for your business. This consists of acquiring your commercial license through the free zone authority. Following this, you ought to have your restaurant plans authorized with the aid of the food safety department and obtain your food license.

You need to follow the UAE food code from Dubai municipality for your license to stay valid. Including the additional permits for alcohol, pork, and deliveries.

3. Submit application forms and required documents

The next step in the process is to finish and put up the specified application forms. Along with this process, supply a duplicate of your trade license, restaurant plans, and warehouse.

4. Open a bank account

Opening a freezone bank account lets you display your agency’s costs, calculate taxes successfully, and control coins to go with the flow efficiently. It is crucial to choose a bank that gives tailored solutions for your business ensuring a comprehensive economic solution without the want for external assistance.

Get more information: Corporate Bank Account 

Documents required to open a restaurant in Dubai and UAE

• Copy of your  trade license
• Blueprint/layout of the restaurant (only applicable for certain free zones)
• Additional permits that may have been acquired such as liquor permit
• Passport copy of the investor
• Visa copy of the investor
• 2 colored passport sized photographs
• Business plan

Start Your Business with Business Link

Given the instances, starting a restaurant business in Dubai can be a rewarding financial move. The overall process may not be complicated, however, if you are new here and are not familiar with the legal structures, it can get slightly confusing. To navigate this, we advise you to ask for help from a business setup consultancy in Dubai.

Business Link can guide key factors including license, bank account, and PRO services , as well as dealing with all important documentation. Moreover, we will facilitate connections with a local sponsor in Dubai with favorable terms and manipulate future aspects like trade license renewal. Contact us today to transform your pursuits into reality.

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How to Start a Restaurant Business in Dubai? A Comprehensive Guide

• August 30, 2024

Do you have a business plan on how to start a restaurant business in Dubai? Are you aware of the essential steps required to establish your restaurant in this vibrant city? If you’re planning to start a restaurant business in Dubai, it’s crucial to navigate through the legalities, market analysis, and location scouting to ensure your success.

With its majority population of expatriates, Dubai has emerged as one of the world’s most diverse food markets. This diversity, along with Dubai’s status as a global tourist destination, makes it an ideal place to start a restaurant business in Dubai. The city’s culinary scene is booming, with new food businesses continually being established.

In 2019 alone, over 2,500 restaurants were launched in the Emirate. With the continuous influx of foreigners and a thriving food culture, that number is expected to grow exponentially. For anyone looking to start a restaurant business in Dubai, this represents a tremendous opportunity in a rapidly expanding market.

With this information now known, it is clear that start a restaurant in Dubai could be a great financial decision. The following are the requirements and steps that you need to take:

Table of Contents

Which Restaurant License in Dubai is Required to Start  a Restaurant Business?

If you want to open restaurant business in Dubai? you will need to obtain a Dubai trade license as well as a restaurant license in Dubai. For the former, you must approach the Department of Economic Development (DED) and provide them the documents that they require.

The same process goes for the latter, this time with the Department of Food and Safety. Once you have acquired both licenses, you may proceed with the later steps. Failure to do so may result in the premature blacklisting of all of your business aspirations.

The Requirements to start a restaurant business in Dubai

To start a restaurant in Dubai, you will need to fulfill two types of requirements: the legal and physical requirements.

(A) Legal Requirements For Start a Restaurant in Dubai

Prior to applying for a trade license, you will need to take the following steps.

1. Finalizing a Business Plan

You need to draw up and finalize a business plan which contains your vision, aim, goals and budget. The document must state what your intentions and activities are, as well as what your back up plan is, should you face any unforeseen complications. This process is handled and supervised by the DED.

Moreover, if you plan on acquiring a pork and liquor license, you must submit a special request for them individually.

2. Select the Region

There are two regions you can choose to set up your restaurant in:

• Free trade zone
• Mainland area

Which Region Suits your Restaurant and Why?

Expats usually prefer to set up their businesses in the FTZs due to the condition that they can own 100% of their company and not require a local sponsor. On the other hand, setting up a business in the mainland requires you to allocate 51% of your company to a local Emirati who will act as your sponsor.

When it comes to restaurants, however, the popular choice is to set up in the mainland, this is because establishing a restaurant in a Free Trade Zone bounds you to operating within that specific area. Mainland’s however allow you to expand your business to any part of the nation, which is ideal if you are looking to open up multiple branches.

3. Select Restaurant Location

After narrowing down your business plan and region, you can then pick the physical location of your restaurant. A lot of thought must go behind this as there are multiple factors to consider such as the regularity of customers for a certain cuisine in an area and whether or not the hygiene standards are met. Additionally, there are permits that need to be obtained such as:

3.1 Permits you need to obtain for below Food Items

• Pork license
• Alcohol license
• Permit for delivery
• Permit for operating in Ramadan

(B) Physical Requirements For start a restaurant business in Dubai

This is the second prerequisite that needs to be fulfilled, which entails providing a map and blueprint for your restaurant with factors including:

• The interior design plans
• Location for food storage
• The ventilation routes
• Fire hazard solution
• Entrance and exit points (including emergency exits)

Architectural Requirements for the Premises

In addition to this, you must also make sure that the premises meet the architectural requirements. They are as follows:

• The floor, counter and walls need to be non-absorbent and fire safe.
• Individual wash basins to clean meat, vegetables etc.
• The kitchen must cover 40% of the total area of the restaurant.
• A proper ventilation system in the kitchen.

There are additional factors to consider according to the activities you plan on carrying out. A business set up agent could provide you a detailed and tailored list according to your plans and needs.

Process to Get Restaurant License and Start a Restaurant Business in Dubai

Once you have met all of the above-mentioned requirements, you may apply for your restaurant license in Dubai. Firstly, you must submit your application along with the relevant documents for initial approval.

How to Open a Restaurant Business in Dubai

• Select a name for the company
• Choose business activities.
• Complete application and submit to Department of Economic Development (DED)
• Rent out a suitable restaurant space and obtain the tenancy contract
• Seek approval of the tenancy contract from Ejari ( Dubai Land Department )
• Get approval from Department of Tourism and Commerce Marketing (DTCM)
• Submit paperwork and relevant documents to DED
• Pay the Dubai trade license fees once approved

After receiving the DED initial approval , you may then approach the Food and Safety department for your food license .

The Food Safety Department is responsible for providing the Food License in Dubai. In order to obtain the food and safety license, you must first produce the trade license in Dubai. In addition, these are the requirements for obtaining the food and safety license:

Required Documents for Dubai Trade License

To summarize the documents, you will need:

• Initial Approval Letter from DED
• A finalized and detailed business plan
• Premises tenancy contract
• Blueprints and floor plan of restaurant
• Memorandum of Association with your local sponsor (if you choose to set up in the mainland).

Requirements to obtain Food Safety License

• Copy of the trade license or primary approval from the authority that issues trade license, which is DED for mainland, and the relevant free zone authority for a free zone
• The entry and exit passages
• Space for processing food
• Area for storing food
• The windows and ventilation system
• Location of food equipment that will be used to prepare the food
• Dishwashers, and other supportive equipment

Upon attainment of the food and trade license, you will be granted permission to start your restaurant in the city-state. Keep in mind, however, that you may be asked to obtain additional licenses, depending on your business activities. This includes:

Food Activities that Requires More Licenses

If you lie in any of the below business activities then you might need to have some other licenses before going for below mentioned activities. Below are the activities.

• Food consignment release license
• Pork permit for handling and serving pork products
• Vehicles permit for transporting food products
• Liquor License

Trade License Fees and Other Costs

The restaurant license cost in Dubai start from AED 10,000 and 15,000. However, the exact cost to open a restaurant in Dubai will depend on a number of factors, including the location, restaurant size, additional approvals, supplies, and cost of ingredients.

Some costs to keep in mind while calculating the cost of starting a restaurant in the UAE are:

• Permissions
• Staff Training
• Capital costs
• Staff Visas
• Interior Design
• Kitchen Appliances
• Opening Stock

For a more clear estimate of the business setup costs of your restaurant, we recommend getting a consultation from one of our expert company formation agents. We will be able to provide a more accurate cost breakdown after learning the particulars of your business.

Visa Eligibility for a Restaurant Business in Dubai

To run a business in Dubai, you need to obtain a residence visa for yourself . After getting it, you may then proceed to apply for the visas of your dependents, these can include:

• Domestic help

Keep in mind though that the number of visas you can apply for also depends on how big your restaurant is and your invested capital and what type of license you are applying for.

Steps for obtaining Residence Visa

The steps for obtaining the residence visa are briefly highlighted below:

• Get registered for E-Channel services for mainland visa acquisition
• Apply for entry permit or employment visa. It is a temporary visa that is valid for 60 days. After getting this visa, you will need to change your status. This will activate your entry permit.
• Appear for medical fitness test, which includes blood test for any infectious disease and a chest X-Ray. The result usually takes three days.
• Obtain your Emirates ID card
• Residence visa stamping. This is when you get an actual visa sticker in your passport. Stamping process takes 15 days usually. After successful visa acquiring, you can apply for your family, dependent or even for your employees.

The total visa process should take between 30-40 days after which you can legally reside and operate your business in the Emirate. A business setup consultant can guide you through the process to avoid any complications or errors.

How much does it cost to open a restaurant in Dubai?

Starting a restaurant in Dubai costs approximately AED 790,000-800,000. For more details on beginning your food business, click the link and reach out to our consultants for assistance.

Is it profitable to open a restaurant in Dubai?

Opening a restaurant in Dubai can be highly profitable with effective management. Yet, success requires adherence to strict food codes. Whether it’s fine dining, bakery, or café, the process follows similar rules.

What is required to open a restaurant in Dubai?

To open a restaurant in Dubai, you need:

• Trade license copy.
• Restaurant layout (if needed).
• Relevant permits like liquor license.
• Investor’s passport copy.
• Investor’s visa copy.
• 2 passport-sized photos.
• Business plan.

Can I start a restaurant in Dubai?

Certainly, starting a restaurant in Dubai involves obtaining both a Dubai trade license and a restaurant license. To get the trade license, visit the Department of Economic Development (DED) and submit the necessary documents. For the restaurant license, follow a similar process with the Department of Food and Safety.

How can Company Setup Consultants Help

Considering all the facts, establishing your restaurant in Dubai could be an amazing financial decision. The overall process is not too complicated either, however, if you are new here and are not familiar with the legal structures, it can get slightly confusing. It is for this reason that we recommend enlisting the services of a business set up consultancy in Dubai.

We can help you by giving recommendations regarding the location, name, and target market in an area, as well handle all the paperwork. In addition to this, we can also connect you with a reliable local sponsor in Dubai on favorable terms and take care of future aspects such as trade license renewal.

To Speak with our Experienced Business Consultants for further information and assistance, call us at +971582595164 . Send a WhatsApp Message for Chat Query on +971 582595164 or email us at [email protected] .

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How To Start Restaurant Business in Dubai with all permits

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The rising tourist arrivals, increasing urban lifestyles, and high disposable income have enhanced the growth of the food service market in the UAE. In fact, the UAE food service market is expected to grow by a CAGR of 7.02% in the next five years . 

So, are you thinking how to start restaurant business in UAE and looking for information on how to acquire permits? If so, continue reading this article to learn the entire procedure.

Things You Need To Know on how to Start Restaurant Business in Dubai

Location and business plan, 1.first, decide whether to open a restaurant on dubai’s mainland or a free zone..

If you choose the free zone, you can own 100% of the company and don’t require a local sponsor. 

Meanwhile, by choosing the mainland, you must allocate 51% of your company to a local Emirati who will act as your sponsor.

Either way, you must seek approval from the relevant authority. Get a permit from the Department of Economic Development(DED) for the mainland and the independent authority for free trade zone.

2.Despite the location you have planned to set up your restaurant, you must create a restaurant business plan and submit it to the authorities.  

This business plan must contain your vision, air, goals, and, importantly, the budget, i.e., you must do the business costing to estimate the capital needed for the restaurant’s initial investment and its running needs.

This plan must clearly state why you want this restaurant, what your intentions and activities are, and the backup plan if you tend to face unforeseen complications in your business. This business plan will be handled and supervised by the DED

Trade License

Requirement to open a restaurant in dubai with required layout:.

The trade license will be issued only after authorities review your restaurant’s construction plan.

To obtain a license, restaurant owners must meet the minimum standards set by the Food Control Department.

For instance:

The restaurant area must be at least 750 sq ft with a kitchen area of at least 300 sq ft to 380sq ft, based on the tandoor oven’s presence.

The food storage areas must have stainless steel shelves.

Besides this, the washing area must accommodate separate basins for fish, meat, fruits, and vegetables.

There must be a separate basin for handwashing. 

Next, ensure a chimney in the cooking area is fixed and at least extended 2 meters higher than the nearest building near the restaurant in the cooking area is a must.

The restaurant’s walls, floor, and roof must have three things – washable, non-absorbent, and fireproof.

Required Documents for Dubai Trade License

The documents you will need are:.

• Initial approval letter from DED
• A finalized and detailed business plan
• Blueprints and floor plan of the restaurant
• Premises tenancy contract
• If you choose to set up on the mainland, you must submit a Memorandum of Association with your local sponsor.

How to obtain a trade license?

• Establish your business nature, whether it is commercial, industrial, or professional.
• State the expected corporate behavior of your company.
• Next, declare your business’s legal status in the UAE.
• Register a trading name for your restaurant.
• Fill in the application form in the DED department.
• State your corporate office and fill out the registration forms.
• Finally, prepare all the necessary documents and submit every requested information to the DED for final approval.

3.You need permits to run the business and a business license to set up the restaurant in UAE from the Department of Economic Development (DED). 

So, getting a food license from the Food Safety Department is essential. 

Only when your trade license is approved can you request a food license.

Some permits you must obtain for food items are:

• Pork license
• Alcohol license
• Permit for operating during Ramadan
• Permit for food delivery

Purchasing a food license will charge you approx AED10,000 to AED12,000 in Dubai.

Getting a pork permit in Dubai for your restaurant is not required if you only want to serve customers Halal food!

4.It is important to check all the boxes in the comprehensive food code document that points out the requirements a food establishment must follow. Thus ensuring a world-class food safety system for UAE’s residents and millions of tourists.

How to obtain a food license.

• You must present the blueprint of your restaurant ambiance to the authorities. 
• As a restaurant owner, you must get approval for the food code from the Food Control Department of Dubai.
• You must give clear details on the area of your restaurant, food storage areas, washing areas, chimney, and a separate basin in your blueprint.
• With all the above-mentioned documents and information, you can visit the DED department to get your food license registered.

What Documents Do You Need as  requirement to open a Restaurant in Dubai?

Here’s a list of documents required on how to start a restaurant business in Dubai and get required licenses on how to start a restaurant in Dubai.

• Trading license
• Food license
• Non-Objection Certificate (NOC) issued by the municipality of Dubai
• Photocopy of the issued trade license
• Typed BR/1 form
• Confirmation report of P.O box
• Ejari Registration Certificate
• Passport size photo
• DED letter approving your restaurant name
• Memorandum of Association (MOA)
• Tenancy agreement form
• Proof of payment
• UAE ID Number

Design and insert a pic with above all as icons each 

Final Words

Since Dubai/UAE has become one of the most preferred tourist destinations worldwide, starting a restaurant business is a good decision. 

It is crucial to ensure that all the steps mentioned above must be taken carefully after research and consideration to get the license without any hassle. Always try to get all required document before to you plan to open a new restaurant in Dubai.

We hope you successfully set up your dream restaurant in UAE. As a new restaurant owner, you might find it intimidating to deal with multiple tasks. To streamline your restaurant tasks and manage them easily, get PosBytz, your all-in-one restaurant Management software . To get more details about restaurant POS software

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Guide to setup a restaurant business in Dubai, UAE

November 10, 2021.

The global restaurant business is booming and will continue to flourish with the simple understanding of the fact that food is an indispensable part of the world, come what may. Despite the economic fluctuations, the food business in Dubai, UAE is an investment of the longest haul. Dubai especially, boasts of one of the most affluent economies, a food business is great to flourish. We have prepared a detailed guide to help with restaurant business setup in Dubai, UAE.

• Why setup a restaurant business in Dubai, UAE

Key factors in restaurant business setup in Dubai

There are a few factors under demographics that you should keep in consideration

What is "Dubai Food Code”?

• Documents required for setting up a restaurant business in Dubai
• Fitting plans for different types of restaurant businesses in Dubai
• Cost of opening a restaurant in Dubai
• How MBG can help 

Why setup a restaurant business in Dubai, UAE  

The international foodservice market is at around USD 3tn which is at rapid growth. In Dubai, the trend is more or less the same. The Emirates’ market is estimated to be worth AED 3.3bn, inclusive of fast-food restaurants accounting for USD 1.5bn, casual dining with USD 880mn, and fine dining around USD 840mn. The size of the market is about 4.2 times higher than the US average. Dubai stands as the melting pot for various cultures from all around the world with a great tourist footfall every year. It, therefore, hosts an exotic mix of platters from all over the world to its people. Setting up a restaurant in Dubai could prove to be the best investment for an investor. It could be extremely profitable if managed well.

However, the restaurant business in Dubai comes with strict codes to abide by. Whether you are a fine dining restaurant, a bakery, or a café, you will have to abide by these food codes. The process for all of the three remains largely the same.

Mentioned below is a comprehensive list of things to keep in mind and how to open a restaurant business in Dubai.

• Type of restaurant activity: Decide what type of restaurant business you want. Whether it is fine dining, fast food outlet, or a café, and stipulate the type of food you wish to sell. It’s important to chart out the basics to not delay the application process. Also, ensure that you do not carry out any other trading activities that are not listed on the license.
• Company name: Before a restaurant business setup in Dubai, decide upon a company name. Here, there are a few stipulations to keep in mind while deciding the company name. For example, if you plan on using your name, then you can only use your name in full. Also, no such name should be used that is already used before.
• Restaurant license in Dubai : You will require two separate restaurant licenses in Dubai to set up a business as a part of the process:
• Trade license application: if you wish to set up a restaurant company in Dubai Mainland, you need to make your initial application to the DED. For Free Zone setups, you can directly apply to relevant managing authorities.
• Application for food license in Dubai: This is issued by the Dubai Municipality’s Food Safety Department. As a part of the application process, you need to provide a copy of the floor plan including all entrances and exits, food processing & storage areas, all windows and ventilation, food processing equipment, and all washing equipment.
• Fully-filled application form
• Passport size copy of proposed owners or owners
• Two colored sized photos

For your license to remain valid, you need to adhere to all food codes as put forward for Dubai.

• Deciding a location: Location will play a huge role in your profits and popularity. Make sure you do a good research on the location of the business in terms of demographics.
• Visibility : setting up your restaurant in a visible location is important. This will ensure a high footfall.
• Accessibility : It is important to ensure that your restaurant is accessible to everyone. If people can reach you easily, then they might find it easier to visit you again.
• Customer Base: Identify your target audience and then decide upon a location to ensure desired audience base.
• Affordability: If the rent is high then making profits on certain foods might not be easy. It is crucial that you do a good research on the lease prices of available spaces.
• Proximity to suppliers : The shipping costs can sometimes exceed that of the raw materials. It is therefore important to ensure that the proximity to the suppliers isn’t much, so as to cut down on your shipping costs.

The food code is the set of rules and codes applicable to every investor in Dubai who plans to set up a food business in Dubai. The food control department in Dubai established a new world-class food safety system to help provide safe food to all its residents and tourists. This is known as the “food code”.

The food code is applicable to the following types of restaurant businesses in Dubai

• Restaurant & cafes
• Canteens in schools and hospitals
• Supermarkets
• Catering units  

Documents required for setting up a r estaurant business in Dubai  

The three main documents as mentioned above are:

• Trading license in Dubai
• Food license in Dubai
• Non-Objection Certificate (NOC) from the local municipality of Dubai

Few permits might also be required depending upon applicable circumstances:

• Ramadan Permit
• Liquor permit
• Pork Permit
• Delivery Permit  

Fitting plans for different types of restaurant businesses in Dubai  

If you’re planning on setting up a food business in Dubai as a restaurant, kitchen, or cafeteria, there are a few floors plan and fitting requirements that you need to fulfill and take care of. Click here to find the details.

Cost of opening a restaurant in Dubai  

Finances are a huge part of any business setup procedure so it’s important that you have a good about it before taking the leap. Depending upon the type of restaurant business in Dubai you are planning for, the cost of opening a restaurant in Dubai may generally vary from AED 2,00,000 to AED 3,50,000 which includes end-to-end running costs, such as company license, rental of space & permissions.  

How MBG can help  

MBG is one of the leading & dependable firms that you can find when it comes to business setup in Dubai. We have seasoned professionals with expertise in understanding, mapping your needs, and assisting you accordingly.

Moreover, all our services are customizable and our consultants can guide you throughout the entire process of business setup in Dubai, along with the services availed by you. We stay with you from the most initial processes to the very last until your office/restaurant is setup in Dubai.

For any queries related to business setup in Dubai or any other UAE emirate, click:- Business setup in UAE

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A detailed guide on how to start a restaurant business in dubai.

Riyaz Kilton

If you are a foodie, Dubai is the best place to be in to try some of the most delicious and vivid delicacies that are available around the globe. Yes, you can have a plethora of European, Middle East, Asian, African and South-East Asian dishes all in one place. Restaurant or food business is a lucrative option in Dubai and UAE, provided you know certain basic necessities in terms of business and regulations.  Here is a detailed guide to start a restaurant business in Dubai.

Licensing for Restaurants

Reastaurant License in Dubai   is an important aspect to start a restaurant business in Dubai. Acquiring the Trade and Food License is mandatory before starting your dream restaurant/cafeteria business in one of the most sought after business and travel destinations in the Middle East. The food license is issued by the Food and Safety Department. The trade license in Dubai is issued by the Department of Economic Development, Dubai and the Department of Tourism and Commerce Marketing. 

Acquiring both these licenses is paramount for starting and running a restaurant business in Dubai, failing to which you may end up with penalties or even a shutdown.  You should also ensure that the documentation part is flawless and verified by the relevant authorities. Even if you are experienced in conducting a Restaurant or Cafeteria business in other parts of the world, the business set up rules in Dubai is a bit different. Therefore, you may need the relentless support and assistance from someone who is already established in the field or a proactive business setup professional like Kiltons. Kiltons Business Setup Services  LLC has decades of experience and expertise in the field of business setup in Dubai and all the other Emirates. Starting your restaurant business right from the scratch is a humongous task (not at all an exaggeration) and may require other permits like Liquor Permit, Ramadan permit etc. 

Find An Apt Location For Your Restaurant Business

Finding the most suitable location serves as a deciding factor for the success or profitability of your business. Have a clear picture in mind regarding your customers and their taste. Based on the same, prepare the pricing for various food items. Let me explain in simple words. If your customers are not able to afford your foodstuffs, it might seriously affect the profitability of your business concern. For example, investing in an area that is home to the ordinary expat population, it would be wise to go for a restaurant that offers affordable meals. Bur Dubai, Deira and Karama are some of the most affordable residential areas in Dubai.  Whereas, the glamorous and expensive locations like the Palm Jumeirah or Emirates Hills are visited by tourists who prefer luxury. In these locations, you may consider a high-profile restaurant.  Therefore, the spending capacity of your customer is the key factor here. 

Another point to consider is the presence of competitors in your preferred location. If you have a good number of competitors it is always wise to consider a different location, unless you have something special (for example a delicacy) to offer for your customers. You may seriously consider the areas that are under construction, or the upcoming tourist spots or any particular locale that is sure to attract your target customers in large numbers. For this, you need to have reliable local assistance and support to determine the apt location based on the type, nature, and budget of your business.

Prepare A Detailed Business Plan

Your business plan should give priority to 4 essential aspects and they are listed below. 

• Have a precise objective for your business.
• Set aside money as a contingency fund to take care of unexpected eventualities.
• Each and every dirham that you invest in the business should help you to enhance the profits.
• As you climb up the ladder, do the best to safeguard your brand.

In Dubai, a Food Code is pertinent to all the businesses that come under the food sector. The businesses that come under this category are restaurants, cafeteria, hotels, bakeries, grocery outlets, stores, food manufacturing units, food storage warehouses, catering units, canteens etc. Therefore the same Food Code is applicable for a restaurant business. The food code is a system followed to ensure food safety compliance.

Design and Layout

There are certain prerequisites to satisfy when it comes to the design and layout of the restaurant. The consent of the Food Control department is mandatory prior to the commencement of construction. Please contact Kiltons food sector advisors for the detailed design and layout guidelines.

Other Permits

You may have to acquire other permits if necessary like Vehicle Permit, Pork Permit, Liquor Permit etc.   

Now you might have got a hint of how tedious and time-consuming is the whole process of Restaurant Incorporation in Dubai. It is evident that only an efficient and experienced business setup professional with a precise understanding of the latest market scenario can manage the whole licensing and incorporation procedures. And that’s what Kiltons Business Setup Services do. 

Please let us know your requirements. We are always ready to help you.

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Restaurant Business Setup Guide in Dubai, UAE

Dubai, a global business hub with over 200 nationalities, offers ideal conditions for launching a restaurant in the UAE. The international foodservice market, valued at USD 3tn, remains robust, with the UAE's restaurant sector estimated at USD 3.3bn. Dubai residents dine out approximately 6.75 times weekly, making it a prime market for restaurant entrepreneurs. If you're considering starting a restaurant in Dubai, seize this opportune moment in a thriving industry.

Why Starting a Restaurant Business in Dubai?

Fueled by the global 'foodie' movement, Dubai and whole UAE emerge as enticing destinations for aspiring restaurateurs. With around 4.7 million annual tourists, Dubai is an ideal hub for restaurant ventures. As Dubai gains recognition as a culinary hotspot, opening a restaurant here holds significant profit potential when executed correctly.

• A diverse consumer base from Asia, Europe, the Americas, and the Middle East.
• Expanding tourism industry .
• Government commitment to economic growth.
• Incentives for food and beverage businesses.

However, before launching your restaurant or cafeteria in Dubai, UAE, several challenges must be addressed. This includes obtaining the necessary licenses and considering setup costs tailored to your specific business type.

Types of Restaurant License in Dubai, UAE

Before obtaining a license, it's important to familiarize yourself with the available options. In Dubai, you can choose from different restaurant licenses:

Floating Restaurant License

This license is suitable for those planning to operate a restaurant or coffee shop for tourists, particularly on yachts, ships, or boats. It permits the serving of food and beverages to tourists during their leisure trips or while the yacht is anchored.

Restaurant and Coffee Shop License

If you intend to establish a larger coffee shop or restaurant in Dubai, you'll require a restaurant and coffee shop license. This license grants permission for a well-equipped kitchen and seating arrangements, both indoors and outdoors. It also allows you to serve a variety of beverages.

Mini Store and Restaurant License

This commercial license is ideal for running a compact restaurant or coffee shop. It authorizes the preparation and serving of food and snacks in an indoor setting. Moreover, it offers the flexibility to sell consumer goods like newspapers, canned food, bakery items, dairy products, and more.

Advantages of Establishing a Restaurant Business in Dubai

Dubai is a popular destination for tourists and expatriates from all over the world. This makes it a great place to start a restaurant business. Here are some of the advantages of establishing a restaurant business in Dubai:

• High demand for food: Dubai has a diverse population with a wide range of culinary preferences. This means that there is a high demand for food from all over the emirate.
• Thriving tourism industry: Dubai is a major tourist destination, with over 17.2 million international tourists visiting the city in 2022. This provides a large potential customer base for restaurant businesses.
• Favorable business environment: Dubai has a business-friendly environment with low taxes and minimal bureaucracy. This makes it easy to start and operate a restaurant business in the city.
• World-class infrastructure: Dubai has world-class infrastructure, including roads, airports, and ports. This makes it easy to transport and import food and supplies.
• Skilled workforce: Dubai has a large pool of skilled workers, including chefs, waiters, and managers. This makes it easy to find qualified staff for your restaurant business.
• High disposable incomes: Dubai has a high population with disposable incomes. This means that people are willing to spend money on dining out.
• Government support: The Dubai government is supportive of the restaurant industry. It has introduced a number of initiatives to promote the industry, such as the Dubai Food Festival.
• Vibrant social scene: Dubai has a vibrant social scene with a wide range of restaurants, bars, and clubs. This makes it a popular destination for people to eat out and socialize.

Suitable Location for Restaurant Business in Dubai, UAE

When deciding where to establish your restaurant, you have two options:

• 1. Free Zone: Many expatriate entrepreneurs favor Free Zone as they enable full ownership (100%) of the company without the need for a local sponsor.
• 2. Mainland Area: Mainland setup requires allocating 51% of your company to a local Emirati sponsor. Interestingly, for restaurants, the preferred choice is often the mainland. This is because, in Free Zones, your restaurant operations are limited to that specific zone. In contrast, the mainland allows you the flexibility to expand your restaurant business across the entire country, making it ideal for those planning to open multiple branches.

Consider factors like your restaurant operations, target market, and long-term goals when selecting a structure, consult legal and business experts for guidance.

Step-by-Step Guide to Get a Restaurant License in Dubai, UAE

If you're an entrepreneur looking to tap into the thriving food industry, follow these steps to secure your license and establish a successful restaurant business.

Step 1: Jurisdiction Selection

Begin by choosing the economic zone in Dubai, be it a free zone or mainland. Seek advice from business setup experts for guidance on selecting the right jurisdiction.

Step 2: Develop a Business Plan

Craft a comprehensive business plan considering your business vision, financial viability, brand management, and contingency plans. Submit this plan to the relevant authorities.

Step 3: Obtain Licenses and Permits

Apply for the necessary business and food licenses from the Food Safety Department and the Department of Tourism, Commerce, or relevant free zone authority. If you plan to open a cafeteria, a cafeteria license is also required.

Step 4: Adhere to Food Regulations

Comply with Dubai's food code, ensuring the highest food safety standards for residents and visitors.

Step 5: Financial Planning

Create a solid financial plan that covers initial investments, equipment, staffing, and licensing costs. For best estimation of capital requirements contact with professional business setup consultants in dubai, UAE like Smart Zones ® UAE .

Step 6: Invest in Technology

Stay competitive by investing in cutting-edge technology for cooking, billing, and other operational aspects of your restaurant.

Step 7: Hire Skilled Staff

Recruit qualified and skilled staff to represent your restaurant and contribute to its success. A well-organized team is essential for achieving business goals, as untrained employees may fall short of expectations.

Remember that the process may vary depending on your chosen jurisdiction and types of operations. Consulting legal and business experts familiar with Dubai's restaurant business landscape is highly recommended.

Operating since 2013, Smart Zones ® UAE provides on-going support to obtain Business Services License in Dubai, UAE incuding Restaurant Business.

Looking for a seamless business setup experience? Trust Smart Zones ® Dubai to pave the way.

Required documents for starting a restaurant in UAE or Dubai.

• A copy of your trade license
• Architectural blueprint or restaurant layout (required in specific free zones)
• Any additional permits, such as a liquor license, if applicable
• A copy of the investor's passport
• A copy of the investor's visa
• Two passport-sized colored photographs
• A comprehensive business plan

Additional documents might be necessary based on your chosen location and type of restaurant.

Cost of Establishing a Restaurant in Dubai, UAE

The Cost associated with establishing a restaurant business in Dubai can vary based on several factors. These include the restaurant's size, location, cuisine type, and the quality of its furnishings. Dubai Economic Development (DED) offers support for obtaining a restaurant license, which can be registered as a sole proprietorship, allowing foreign nationals to own 100% of the restaurant. The approximate cost for a restaurant license in Dubai is AED 18,260. For a detailed and precise breakdown of the licensing costs, it is advisable to reach out to Smart Zones ® UAE , reputable business setup consultants in Dubai, UAE.

Frequently Asked Questions (FAQs)

Why should i consider starting a restaurant business in dubai.

Dubai's diverse consumer base and thriving tourism industry make it a prime market for restaurant entrepreneurs.

What types of restaurant licenses are available in Dubai, UAE?

Dubai offers various licenses, including Floating Restaurant, Restaurant and Coffee Shop, and Mini Store and Restaurant licenses.

What are the advantages of establishing a restaurant business in Dubai?

Advantages include high demand for food, a thriving tourism industry, a favorable business environment, world-class infrastructure, and a skilled workforce.

Where should I establish my restaurant in Dubai, UAE?

You can choose between a Free Zone, which allows 100% ownership, or the Mainland, which often provides more flexibility for restaurant expansion.

What is the step-by-step process to get a restaurant license in Dubai, UAE?

The process involves jurisdiction selection, business plan development, obtaining licenses and permits, adhering to food regulations, financial planning, technology investment, and hiring skilled staff.

What documents are required to start a restaurant in Dubai, UAE?

Required documents typically include a trade license, restaurant layout, investor's passport and visa copies, business plan, and other permits as needed.

What is the approximate cost of obtaining a restaurant license in Dubai, UAE?

The cost can vary based on factors like restaurant size, location, and cuisine type, but an approximate cost for a restaurant license in Dubai is AED 18,260. For a precise breakdown, consult experts like Smart Zones® UAE.

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Do I Need to Live in Dubai to Setting up Business in UAE of Restaurant?

For Setting up business in UAE, you don’t need to be a resident, but having a presence in Dubai can offer certain advantages and facilitate the process. Understand the complete process of starting a restaurant in Dubai. Dubai is the premier location for business setup. The city is not only popular with tourists from all over the world, but it also has over 150+ different nationalities living there. Not to mention, the city has one of the Middle East’s fastest expanding economies. As a result, it is the best place in the UAE to open a restaurant. The process of beginning this business in a free zone is simple and quick, nevertheless.

• Best Locations to Setting up business in UAE for restaurants

1. Downtown Dubai:

2. dubai marina:, 3. jumeirah:, 4. difc (dubai international financial centre):, 5. dubai media city:, 6. al barsha:, the restaurant industry in dubai from an investment perspective, steps for setting up business in uae of restaurants and dine outs, 1. costs for starting a restaurant:, 2. getting licensed to open a restaurant in dubai, trade license:, food license:, 3. making a concept and usp decision for your restaurant:, 4. selection of a location:, 5. designing the menu:, 6. layout design for a restaurant:, 7. choosing the best technology:, 8. hiring skilled staff, the steps of getting a residence visa, what are the dos & don’ts for opening a restaurant in dubai, conclusion: –.

Choosing the right location is crucial for the success of any dining establishment:-

Home to iconic landmarks such as the Burj Khalifa and Dubai Mall, Downtown Dubai is a bustling hub that attracts locals and tourists alike. The area boasts a diverse mix of residential, commercial, and tourist activity, making it an ideal location for a restaurant. Whether it’s a trendy café, fine dining establishment, or casual eatery, Downtown Dubai offers a captive audience of food enthusiasts looking for memorable dining experiences.

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Dubai Marina, a vibrant waterfront district, offers a breathtaking view of the city’s skyline and a bustling atmosphere. This cosmopolitan area is home to numerous luxury hotels, residential towers, and entertainment venues, making it a popular choice for residents and tourists seeking a trendy dining destination. A restaurant in Dubai Marina can cater to diverse tastes and preferences, ranging from upscale dining experiences to casual waterfront eateries.

Jumeirah is a renowned neighborhood known for its beautiful beaches and upscale residential communities. With its mix of locals and expatriates, this area offers a prime location for a restaurant targeting a sophisticated clientele. Restaurants in Jumeirah can benefit from the stunning views, access to beachgoers, and a clientele looking for high-quality dining options.

As the leading financial hub in the Middle East, DIFC attracts a large number of professionals and business travelers. The area offers an ideal environment for a restaurant targeting the corporate crowd or hosting business lunches and dinners. DIFC’s reputation for upscale dining and its proximity to luxury hotels and offices make it an attractive location for culinary entrepreneurs.

With a bustling community of professionals, including journalists, filmmakers, and designers, this area provides a unique opportunity for restaurants to cater to a niche audience. From trendy cafes to concept-driven eateries, Dubai Media City can be an excellent choice for those looking to tap into the city’s creative energy.

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Located close to popular attractions like Mall of the Emirates and Ski Dubai, Al Barsha is a thriving residential and commercial area. It attracts a mix of locals, expatriates, and tourists, making it an excellent location for a restaurant seeking a diverse customer base. With its accessibility, lively atmosphere, and potential for footfall, Al Barsha offers ample opportunities for culinary entrepreneurs.

It would be difficult to estimate the range of investments required without consulting current customers who effectively operate cafeterias, restaurants, and small-scale eateries. Opening a restaurant in Dubai can be a lucrative investment opportunity for business people throughout the world because the legal processes to do so don’t take more than a week.

You can use this list to open the dining establishment of your desires in luxurious Dubai.

Since starting a restaurant takes a substantial investment, it’s a good idea to make a list of all the costs involved in order to avoid squandering money on unneeded items. Knowing roughly how much money they will need to spend in advance is crucial for any restaurant owner. Before opening a restaurant, some costs to take into account are:

• Rent or the cost of purchasing a new home
• Permissions
• Staff training program
• Software for daily operations
• Working capital
• Cost of setting up the restaurant – equipment, tables, chairs, etc.

These are some of the upfront costs you’ll have to consider when operating a restaurant.

Before you choose to reserve a time slot in your preferred location, you must first acquire all the licenses and permits required to operate a restaurant. For Setting up business in UAE of restaurant in Dubai, you mostly need to obtain two types of licenses.

Obtaining a Trade License for your restaurant in Dubai is essential, and it is issued by the Department of Tourism and Commerce Marketing. The license must clearly indicate the specific type of restaurant you intend to operate. The cost of the trade license can range from AED 30,000 to AED 40,000, which may vary based on factors such as the nature and scope of your restaurant.

In Dubai, the Food Safety Department is in charge of issuing the food license. You must obtain this license after receiving your trade license in order to have your restaurant’s development plan approved. Contact the Department of Tourism and Commerce Marketing for information on how to start a restaurant in Dubai and to obtain a food trading license in Dubai. The type of restaurant you plan to open in Dubai must be mentioned in the pre-approval application from your end.

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You must have an original idea for your restaurant before you begin, something that will make you stand out from the crowd. This will provide you an advantage in Dubai’s fiercely competitive restaurant market. Your restaurant’s concept encompasses the way you serve customers, the cuisine you offer, and the setting of your establishment. Identifying your restaurant’s USP is another important item to think about. It will assist draw a lot of guests if you have an unusual theme or present a cutting-edge menu item. Try something new, then, if it hasn’t been done earlier!

Due to the more than 200 different nationalities that call Dubai home, restaurant owners have a wider range of potential customers to serve, depending on the type of eatery they operate. Make sure to do some research on a potential location, including its demographics, to determine whether it has enough foot traffic to support your restaurant operation.

You must choose the menu’s items and curate it before you may open the doors of your restaurant. To cover your Prime Cost, which consists of the Cost of Goods Sold and the Labour Costs, you must also properly construct your menu, choose the suitable menu items, and price them.

The layout of your restaurant will have a big impact on how it runs on a daily basis, so creating one might be a little overwhelming but is a crucial step when beginning a restaurant. It will help your restaurant run more smoothly by giving you plenty of room to move around. It will also help you make a good first impression on your customers because everything is done quickly.

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Make smart use of the area you have and arrange the components carefully. To ensure maximum use of the space without impeding everyday operations, it is crucial to analyze and arrange everything from the tables to the kitchen equipment—properly.

The significance of technology cannot be understated in today’s technologically advanced world. When opening a restaurant, it is essential to spend money on a reliable POS system that will ultimately make your job easier. With a POS system, you might carry out a number of regular duties, like the ones listed below.

• Pushing Orders
• Stock & Inventory Management
• Get Accurate Reports

All of these features will assist you in effectively managing the daily operations at your restaurant, which is crucial if you want to succeed in Dubai’s food and beverage sector.

It is important to hire the greatest personnel because competent employees are a definite indicator of a reputable restaurant and the best service. Since there is a lot of turnovers in the Gulf region’s restaurant industry, it is crucial to hire staff who will stick around and support the expansion of your restaurant.

You should think about the various roles you want to fill before you start hiring.

• Senior & junior chef
• Prepares food
• If you want to provide alcohol, bartenders.
• Cleaning workers

Before opening your restaurant’s doors, you will need to fill a few basic positions that are required of all restaurants’ workers. You can begin by hiring the bare minimum of staff members and add more as and when necessary.

You require a residency visa for yourself in order to Setting up business in UAE. Upon receiving it, you may then move forward with the application process for the visas of your dependents, which may include family members, employees, and domestic helpers. However, keep in mind that the quantity of visas you are eligible to apply for also relies on the size of your restaurant, the amount of capital you have invested, and the sort of license you are seeking.

Here are the steps for acquiring a resident visa in brief:

• Register for E-Channel services to purchase mainland visas.
• Apply for an employment visa or entrance permission. It is a brief visa, only good for 60 days. You’ll need to modify your status after receiving this visa. Your admission permit will then be activated.
• Attend a medical fitness test that involves a chest X-ray, a blood test for any infectious diseases, and other necessary procedures. In most cases, the outcome takes three days.
• You should get your Emirates ID card.
• Stamping a residency visa. At this point, you receive a real visa sticker for your passport. The stamping process typically takes 15 days. After successfully obtaining a visa, you can apply for members of your family, dependents, or even employees.

After the 30- to 40-day visa application process is complete, you can live and work legally in the Emirate. You can be guided through the process by a business setup adviser to prevent any difficulties or mistakes.

• To begin the first stage with good business feasibility and planning to have a thorough understanding of your market and future projections on ROIs.
• Create a pricing strategy based on competitive analysis to confirm the costs and expenses.
• Make sure to create a thorough marketing strategy and employ the right web channels to increase sales by a larger margin.
• Do a SWOT analysis of the competition nearby and potential plans with the assistance of experts.
• To obtain a NOC and necessary authorization from the appropriate authorities.
• If you have never opened a restaurant before, do not attempt to do so in Dubai or anywhere else. It is best to seek guidance or work with knowledgeable, seasoned professionals.
• Be reasonable and avoid overpricing your menu items.
• Don’t create a menu based on your personal preferences; instead, cater to client preferences.

In conclusion, Due to the huge number of tourists and busy inhabitants who don’t have time to cook for themselves or who want to sample various cuisines from different nations- Restaurant Setting up business in UAE are among the most profitable enterprises to establish. Dubai is also an international metropolis where people are always eager to try new foods, which helps restaurants attract and keep customers every day.

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Restaurant Business Setup in Dubai: A how-to Guide

• September 20, 2021
• Posted by: DBS
• Category: Dubai Business Services

There has never been a better time for establishing a restaurant Business setup in Dubai than now.

The culinary entrepreneurs will find Dubai to be a great city to live in and work in. According to city statistics, there are currently 21,000 restaurants per million citizens in the city, and these eateries are making good money.

Several recent reports project a $33 billion increase in the UAE restaurant industry’s earnings by 2020. You wouldn’t want to miss out on being a part of the surge in this market, would you? We will provide you with the core considerations to think about if you are looking to start your own restaurant business setup in Dubai .

What makes Dubai an Exciting Place to Start a Restaurant Business?

• There is a massive pool of international customers that come to Dubai from every region of the world, including Asia, Europe, Africa, and America.
• In the tourism industry, there is tremendous growth.
• Dubai is focusing on achieving its GDP and economy with the utmost focus and commitment. 
• Dubai’s success is largely due to the government, which has built marvellous buildings, stunning scenery, and a haven for travelers.
• Dubai offers attractive incentives for new companies wanting to open a cafe or restaurant.

Restaurant Business Setup in Dubai: 10 Steps to Follow

There is a lot to think about when opening a restaurant in Dubai, and if you skip one step, you may have problems with the authorities. We will now look at the steps that lead to opening a restaurant business setup in Dubai.

1.      Restaurant License in Dubai Requirements

There are two types of restaurant licenses you need in Dubai:

License to trade

Business licenses are provided by the Department of Tourism and Commerce Marketing. To operate a restaurant, you must choose the type of establishment that is appropriate for your business. A license will specify this, so make sure you pay attention to it.

The Dubai food control department must also review and approve your construction plans.

License for Foodservice

The Dubai Department of Food Safety issues food licenses. In order to obtain a cafeteria license or any food business license in Dubai, the following documents must be presented to the food safety department.

• The Documentation authority issues the trade license and confirming the trade license.
• The layout of the interior of the property, if applicable. Your restaurant’s blueprint should include the following components:
• Passages leading into and out of the building
• A place where food can be processed
• Food storage space
• Ventilation system and windows
• Food processing equipment location
• Supportive equipment, such as washing machines and dishwashers.
• Furthermore, if a restaurant is located outside of a shopping center, the planning department must approve it.

The Food Safety Department must also be contacted about a NOC on foodstuff establishment trade license. This service is provided by the Department of Economic Development (DED) to facilitate issuing trade licenses related to food activities or establishments. For example, the Dubai investment park and the Jebel Ali free zone. There is a fee for food establishment permits.

2.      A Location must be Selected

Restaurants in Dubai should consider their location carefully before opening. The first step would be to decide whether to operate on the mainland or in one of the free zones.

However, if you want to open a restaurant in one of Dubai’s free zones, you’ll need the permission of the relevant free zone authority. Free zone areas allow you to own 100% of your shares and may not require a local sponsor, but they may limit your trading area.

It is expected that tourists will stay in 5-star hotels and dine in more expensive restaurants in Dubai. Keep your competitors in mind as the area must not be overrun by them, resulting in no space for your venture.

3.      Creating a Business Plan

All the necessary factors must be included in a professional restaurant business plan. For example, you perform a SWOT analysis, create a marketing plan, prepare a contingency plan for uncertainties, conduct a market survey, and compile cash flow projections and break-even calculations. There are many factors that contribute to the growth of your business.

4.      Restaurant Opening Costs in Dubai

In order to set up a restaurant business in Dubai, you will need a budget to pay for planning, development, and government procedures. Cafeteria establishment costs can vary from location to commercial space to employee count, depending on a variety of factors. As a business plans its operations, creates menus, and sets prices, the costs of government requirements must also be considered.

Dubai Business Service is a restaurant business setup consultant in Dubai that designs specific packages that pay attention to the expenses that will arise when establishing a restaurant in Dubai.

5.      Dubai Restaurant Layout Requirements

Your restaurant construction plan must be approved by authorities before a trade license is issued. Food licenses require that the restaurant’s interior layout be reviewed. You will need additional licenses if you want to serve pork, liquor, or deliver food.

• The Food Control Department is required to set a minimum standard for restaurants applying for a license. 
• Depending on the presence of a tandoor oven, the restaurant area must be more than 750 square feet with a kitchen area of at least 300 square feet to 380 square feet. 
• It is imperative to install stainless steel shelving in areas that store food.
• The washing area should accommodate separate basins for meat, fish, fruits, vegetables, and dishes.
• Handwashing should be done in a separate basin.
• A chimney in the kitchen is required. It must rise 2 meters above the nearest structure.
• The restaurant’s walls, floors, and ceiling should all be washable, non-absorbent, and fire-resistant.

6.      The Menu’s Design

You must curate the menu and select what it will include before you open your restaurant’s doors. You must also properly build your menu, selecting and pricing menu items to cover your Prime Cost, which comprises both the Cost of Goods Sold and Labor Costs.

You should also carefully construct your menu so that clients are more likely to buy high-profit products. This may be accomplished by strategically putting high-profit goods in high-traffic areas and creating appealing menu descriptions.

Your menu does not need to be entirely created at first, and your recipes do not need to be completely developed out. As you learn more about which foods sell well and which do not, you may progressively update the menu.

7.      Measures to Keep Food Safe

When a restaurant first opens, it needs to hire qualified employees. This individual will be in charge of operations and will be chosen by the person in charge of training. This individual must additionally complete specialized training. The following special permissions are available:

• A vehicle permit is necessary for food transportation.
• The use of a food truck necessitates the acquisition of a food truck license.
• Pork permits are necessary for handling and serving pork.
• License for the discharge of food consignments.

Import and export of food items are governed by distinct rules under the new Dubai food code, which was enacted in 2013. These may be useful for forming a firm in the Dubai food and beverage sector.

8.      Recruiting Qualified Personnel

It is critical to recruiting the greatest personnel since having competent employees is a clear indicator of a successful restaurant and the finest service. Because the restaurant sector in the Gulf area has a high turnover rate, it’s critical to recruit individuals who will stick around and help your restaurant develop.

You should think about the various jobs you want to employ individuals for before you start hiring.

• Cooks who prepare food
• Bartenders are people who work in bars (if you wish to serve alcohol)
• Cleaning crew for the host

These are some of the most fundamental staffing criteria for all restaurants that you’ll need to meet before you open your doors. You can begin with a small number of employees and add more as and when the demand arises.

9.      Required Documents for Opening a Restaurant in Dubai

These are the three major papers that must be presented to the authorities before you can start your new restaurant or cafeteria company in Dubai:

• License for trading
• License for food and health
• Dubai’s local municipality has issued a certificate of non-objection (NOC).

Other Permits Include:

• Allow for Ramadan.
• Permit to use alcohol
• Permission to consume pork
• Authorization for delivery

10.  Additional Permits

Other permissions, such as a vehicle permit, a pork permit, or a liquor permit, may be required.

You may have gotten a sense of how time-consuming and tiresome the entire process of Restaurant Incorporation in Dubai is by now. Only a skilled and experienced business setup specialist with a thorough grasp of the current market situation can effectively manage the license and incorporation processes. Dubai Business Services does exactly that.

Please let us know what you need. We are always willing to assist you.

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Contact DBS

Opening a new restaurant may appear to be a difficult process, but if done correctly, it can be a gold mine for money. The food sector has never experienced a setback. If you’d want to operate a restaurant in Dubai, please contact Dubai Business Service.

Talk to our expert business consultants today to learn more about starting a business in Dubai and UAE!

Book a free consultation today!

Call us on +97145667485 or WhatsApp on +971551129344.

You may also chat with a live agent on our website https://www.dubaibusinessservices.com/ , request a call back on https://www.dubaibusinessservices.com/contact-us/ or visit our office Clover Bay Tower Office 1111, Business Bay Dubai UAE

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Restaurant, commercial space and 136 apartments planned on Route 13 in Smyrna

Plans for a drive-thru restaurant, commercial space and 136 apartments have been proposed on Route 13 in Smyrna across from the Smyrna Rest Area.

Apennine Development of Wilmington has filed a conceptual plan with the town for 9 acres at 5563 and 5573 DuPont Parkway (Route 13 South). The land is mostly farmland but is in the corridor commercial zone.

The plan includes:

• Eight 3-story apartment buildings, four with 16 units and four with 12 units for a total of 112 units
• Two 3-story mixed-use buildings, each with 5,670 square feet of commercial space on the first floor and 12 apartments on the second and third floors, so 24 total apartments in the two buildings
• A single-story 3,000 square-foot clubhouse with fitness center and outdoor pool for apartment residents
• A single-story 2,400 square-foot drive-thru restaurant
• Streets, parking, open space and recreational amenities

Along with the pool and clubhouse, the proposed amenities are a dog/pet park and a community garden, but the Smyrna planning staff is recommending a picnic area and/or playground instead of the garden.

The land borders Route 13 on the east, farmland on the west, Filec Electrical Services to the south and homes and Parkview RV Center to the north.

Start of development on farmland between Route 13 and Duck Creek Road

A residential development is planned on the Sharoff farm property to the west, between Route 13 and Duck Creek Road.

To coordinate the main road through the residential neighborhood and this commercial center and apartments, the town planning staff is recommending a wide-entry boulevard from Route 13 with a median through the middle, connecting to the Sharoff property.

“The eventual and ultimate goal of this is to provide a central and bisecting boulevard to connect U.S. Route 13 with Duck Creek Road, and thus funnel residential traffic from the Sharoff farm through this site and directly onto U.S. Route 13 (and vice versa) without clogging Duck Creek Road,” according to the Smyrna planning staff report .

The developer will have to pay to run utilities to the site, said Jeremy Rothwell, Smyrna director of planning.

The commercial buildings including the restaurant must be built within 15 feet of the highway right of way with parking in back, “rather than having a huge sea of parking in front of them along Route 13," Rothwell said.

Landscaping requirements include 132 trees; however, there are already trees on the site that can count in that total. The planning staff recommends that existing mature trees be retained wherever possible if they don't interfere with the proposed building locations.

The staff also recommends a row of evergreen trees be planted along the northern property boundary next to the existing residential lot and house and along the western border with the Sharoff farm since that will likely be next to single-family homes or townhouses that are planned.

When will construction begin?

Apennine Development did not return calls about when construction could start or the names of the restaurant and businesses interested in the development.

Rothwell said the next steps with the town include the preliminary plan and the final plan.

The preliminary plan includes engineering for the stormwater system, utilities, roads, parking and open space.

“There are a few minor tweaks the town staff would have to see,” Rothwell said.

Those include a request for a second entrance/exit because there’s only one access point from Route 13. The second entrance could have removable bollards or posts so regular traffic can’t get through but emergency vehicles could, by removing the posts.

County and state agencies must approve the plan including the Delaware Department of Transportation and State Fire Marshal’s Office .

Rothwell said one concern is temporary ponding on the property after storms throughout the year, likely because of a layer of clay a couple of feet below the surface. The applicant hasn’t included stormwater management ponds in the proposal yet, but those aren’t required for the conceptual plan.

“Presumably, the applicant proposed to place underground bio-retention areas beneath the proposed parking areas for storm water management,” according to the town planning staff’s report. “If soils are not conducive to this, the project may have to be substantially reconfigured and redesigned.”

Reporter Ben Mace covers real estate, development and business news. Reach him at [email protected].