How to open a Restaurant in Dubai?

Dubai has become one of the most preferred tourist destinations for people around the world; in fact, it is one of the top 10 destinations for tourists. In this blog-post we will walk you through the core considerations if you are looking for opening a new restaurant business in Dubai.

 

Why Dubai is an exciting place to open a restaurant business?

• Diverse pool of customers coming to Dubai from every part of the world i.e. Asia, Europe, Africa, America, Middle East and Australia.
Tourism industry is booming.
Utmost focus and commitment of Dubai government towards economy and GDP. The government plays a vital role in success of Dubai, a city that is full of resorts, marvelous buildings, eye-catching sceneries, and hospitality.
Alluring incentives for new business startups for opening a restaurant or cafe in Dubai.

How to open a Restaurant in Dubai?

When Opening a restaurant in Dubai – you must plan each and every step carefully because skipping one step might get you into trouble with the authorities. Let’s see the steps involved in opening up a restaurant in Dubai.

Step 1: Acquiring Food & Trading licenses.

The first step you need to take is to acquire your food and trading licenses from the authorities. For the food license, you need to approach the Department of Food and Safety, whereas the trade license can be obtained from the Department of Economic Development (DED), which might cost you approximately AED 10,000 to AED 12,000, and the Department of Tourism and Commerce Marketing (DTCM).

Step 2: Selecting a location.

 Location is one of the most important considerations while opening a restaurant in Dubai. The first thing would be deciding whether to go to the mainland area or to operate within one of the free zones.

But if you are planning to set up a restaurant in Dubai free zones, then the consent of the corresponding free zone authority should be obtained. Free zone areas will allow you to hold 100% of your shares and might not require a local sponsor but might restrict your area for trade.

For example: Target your consumer -E.g. bachelors or families or tourist? if you have planned for an Indian or Pakistani cuisine then you need to target the right set of customers who prefer this type of cuisine- Residential area like karama, bur Dubai, Deira etc

Tourists will stay at 5 star hotels and opt for more luxurious eating places- business bay, Dubai marina, JLT, HBR ETC; Keep your competitors in mind as the area must not be saturated so much by them which resultant does not leave space for you to grow.

Step 3: Drafting a Business plan

A professional restaurant business plan will require all the necessary factors. Like SWOT analysis, target marketing, preparing a financial plan, preparing a contingency plan for uncertainties, market survey, research, your cash flow projections, break-even analysis, and others. Every single factor will contribute to the growth of your business.

Step 4: Estimating cost and expenditure

The last and most important thing to be considered before starting your restaurant is to have a proper financial plan ready to keep a track as to how much you need to spend.

How much will this type of restaurant cost?

What will be the cost of staffing and pieces of equipment? How much will The license acquire cost? Estimating all the investment and expenditure is a daunting task in a restaurant business.

Other than that, one needs to consider costs like:

  • Local sponsor fee – approximately AED 10,000/year
  • A Trade license fee for DED – approximately AED 10,000 to AED 12,000
  • Labor and immigration registration – up to AED 8,000
  • Rent of the restaurant premises – AED 60,000 and above (varies by location)

 

Architectural Requirements for a New Restaurant Business in Dubai

  • The kitchen must have an area of at least 300 to 380 square feet (if there is a tandoor in the kitchen), or 40% of the total area of the restaurant.
  • There should be a good ventilation facility, and the chimney should 2 meters higher than the nearest building
  • Walls, floor, and roof should be washable, and fireproof
  • There should a basin for washing the utensils, a separate basin for cleaning the vegetables, and a separate one for meat
  • Storage facility for all types of food items is a must
  • The drainage pipe should be at a distance of at least 2 inches from the wall

 

 

Documents Required for Starting a Restaurant in Dubai

Before you begin with your new restaurant or cafeteria business in Dubai, these are 3 main documents required to be submitted to the authorities:

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

Other than these, one can always opt for other permits like:

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

Opening a new restaurant business might seem like a complex procedure, but it is a revenue-generating mine if managed properly. The food industry is an industry which has never faced a downfall in its record. So if you are interested to open a restaurant in Dubai, feel free to contact us, Anuvi Business Solutions at given below details: info@anuvibs.com, +971 50 409 2494. We provide already established running restaurant for sale in Dubai, UAE.

Thank You!