Restaurant formation in Dubai The first is a trade license. This can be applied for either via the Dubai Department of Economic Development (DED), or via a free zone. Next, you must get your restaurant plans approved by the food control department. Once this stage is completed, you can then apply for your food license.
How much does it cost to open a restaurant in Dubai?
break down the costs of opening three types of restaurants in Dubai within profitable budgets. Restaurant investors can expect to spend an average Capex of $500,000 upwards for a full service restaurant, a minimum of $100,000 for a dark kitchen model, and $250,000 onwards for a hole in the wall, focused concept.
Is restaurant profitable in Dubai?
Dubai is a hotbed of tourists and expats. Dubai Statistics Center (DSC) released data that showed that restaurants produce services worth nearly 20 billion dirhams, making it one of the most lucrative businesses.
How much money do I need to open a small restaurant?
The average restaurant startup cost is $275,000 or $3,046 per seat for a leased building. Bump that up to $425,000 or $3,734 per seat—if you want to own the building. Our restaurant startup cost checklist breaks down all the costs you’ll need to consider to make your dream a reality.
How do I get a restaurant license in Dubai?
For Restaurants to sell food items in Dubai, they have to apply for a trade license from the Dubai Department of Economic Development (DED) and get the approval of the Department of Tourism, and Commerce Marketing. Now the owner can apply for the Food License through Food & Safety Department.
Why do so many restaurants fail?
Around 60 percent of new restaurants fail within the first year. And nearly 80 percent shutter before their fifth anniversary. Often, the No. 1 reason is simply location — and the general lack of self-awareness that you have no business actually being in that location.
How can a foreigner open a restaurant in Dubai?
Restaurant formation in Dubai The first is a trade license. This can be applied for either via the Dubai Department of Economic Development (DED), or via a free zone. Next, you must get your restaurant plans approved by the food control department. Once this stage is completed, you can then apply for your food license.
How expensive is food in Dubai?
How much does a meal cost in Dubai? The main dish in Dubai restaurants usually cost around 40 – 100 AED (10-25 EUR). Sandwiches and burgers cost 35 – 55 AED (9-14 EUR). Appetizers and desserts cost around 20-40 AED (5-10 EUR).
What is the best business in Dubai?
What are the top 5 industries for new businesses in Dubai?
- Import & Export. Import and export business in Dubai is such a lucrative sector and is, of course, #1 on our list.
- Real Estate.
- Information Technology.
How much does it cost to open a cafe in UAE?
On average the approximate cost to open the cafeteria is between 150,000 AED to 200,000 where’s the major cost is the rent of place, interior fit-outs and hiring staff.
Is restaurant a good business?
Yes, restaurants are profitable, but they have low profit margins. Profitability depends on many factors including the size and type of restaurant, as well as economic ones. It takes an average of two years for a new restaurant to turn a profit. Unfortunately, there is a very high restaurant failure rate.
What is the most profitable business?
The Most Profitable Business by Sector:
- Accounting = 18.4%
- Lessors of Real Estate = 17.9%
- Legal Services = 17.4%
- Management of Companies = 16%
- Activities Related to Real Estate = 14.9%
- Office of Dentists = 14.8%
- Offices of Real Estate Agents = 14.3%
- Non-Metalic Mineral and Mining = 13.2%
How hard is it to start a restaurant?
A hard reality is that many restaurants fail during their first year, frequently due to a lack of planning. But that doesn’t mean your food-service business has to be an extremely complex operation. It’s a lucrative business. But there are a thousand moving parts, and you need to be knowledgeable of all of them.”
Can I sell homemade food in Dubai?
Homemade food businesses are required to apply for business license before they can operate in the UAE. Homemade food businesses are regularly monitored by inspectors, an official from the Sharjah Municipality added. Homemade food sold in grocery stores must also bear product label.
What are the requirements to start a restaurant?
What Do You Need to Open a Restaurant?
- Business License. Step one: a business license.
- Employer Identification Number (EIN)
- Certificate of Occupancy.
- Food Service License.
- Sign Permit.
- Music License.
- Resale Permit.
- Building Health Permit.
How many restaurants are in Dubai?
DUBAI, 6th February, 2019 (WAM) — The total number of operational restaurants and cafes in the emirate of Dubai reached 11,813 at the end of 2018, according to a report issued by the Business Registration & Licensing (BRL) sector in the Department of Economic Development (DED), Dubai.
Opening A Restaurant In Dubai? Here’s What You Need To Know
Dubai, a city that receives around 4.7 million visitors every year, is an ideal opportunity for entrepreneurs looking to launch a restaurant company. The city of Dubai is rapidly emerging as one of the world’s premier food destinations, and establishing a restaurant in Dubai can prove to be extremely profitable if done properly. Before starting a restaurant company in Dubai, you must meet certain business standards, just as you would in any other city. This article will walk you through every step of the process of opening a restaurant on the Persian Gulf Coast of the United Arab Emirates.
How To Open A Restaurant In Dubai
Every eatery in Dubai, whether it is a fine dining restaurant, a café, or a bakery, must adhere to a stringent food code that is enforced. This food code is intended to assist the person in charge of running the restaurant in operating the establishment in accordance with the regulations. When preparing to start a restaurant, there are a variety of factors to consider, and we have compiled a complete list of those factors for your convenience. This list will assist you in establishing the restaurant of your dreams in the opulent metropolis of Dubai.
1. Costs To Consider Before Opening A Restaurant
When starting a restaurant company, a significant amount of money is required; consequently, you should make a list of your costs before proceeding with the venture in order to prevent squandering money on superfluous items or going overboard and spending more money than is really necessary. It is critical for any restaurant owner to have a rough concept of the expenditures that they will have to face in advance of opening their establishment. Some of the expenses to factor in when operating a restaurant are as follows:
- When starting a restaurant company, a significant amount of money is required
- Consequently, you should make a list of the expenditures you will incur in order to prevent squandering money on unneeded items or going overboard and spending more than is necessary. A rough estimate of the expenditures that a restaurant owner will have to face in advance is critical for any restaurant owner. Prior to operating a restaurant, it is necessary to factor in the following costs:
The following are some of the early costs associated with establishing a restaurant business:
2. Obtaining A license For Opening A Restaurant In Dubai
Even before you decide to reserve a time slot at your preferred location, you must first secure all of the essential licenses that would allow you to start a restaurant in that area. For a restaurant to operate in Dubai, you must get one of the following two types of licenses: a business license and a hospitality license.
(i) Trade License
The Trade License is issued by Dubai’s Department of Tourism and Commerce Marketing, which is responsible for issuing it. You are necessary to specify the type of restaurant you want to operate, as this information must be included in the application for a license. It is possible that a Trade License will cost you between AED30,000 and AED40,000, based on a variety of circumstances, such as the sort of restaurant you own and manage. The following are the steps to take in order to obtain a Trade License for the purpose of starting a restaurant in Dubai:
- Determining what kind of business it is – whether it is commercial, professional, or industrial. Identify the corporate activities in which the firm is involved (a maximum of ten activities per license are permitted)
- Establish a legal standing for your company in the United Arab Emirates
- Choose and register a business name for your organization
- Submit a request for preliminary approval of your application. Rent a corporate office space
- Prepare all of the necessary documentation
- Submit a second application to the Department of Environmental Defense for final approval
(ii) Food License
In Dubai, the Food Safety Department is in charge of issuing the Food License to customers. After you have obtained your Trade License, you will need to submit an application for approval of your restaurant’s building plan in order to acquire approval. The following documents must be presented to the food safety department in order to be granted a Food License by the department. Copies of the trade license or principal approval from an authority that issues trade licenses are required.
It may be necessary to incorporate an interior design plan into your business facilities. This is, in essence, a blueprint for your restaurant’s design. The following elements must be included in this restaurant blueprint:
- The corridors leading into and out of the building
- Space for the preparation of food
- A place to keep food in storage Windows and the ventilation system are important considerations. a description of the location of the food preparation equipment that will be utilized to prepare the cuisine
- Washing machines, dishwashers, and related equipment
Additionally, the restaurant is necessary to secure the following licenses in addition to the previously mentioned:
- Consignment release license
- Pig permission for handling and selling pork goods
- Vehicle permit for moving food items
- Liquor license (if you want to offer alcoholic beverages at your establishment)
- And other permits and licenses.
3. Determining Your Restaurant’s Concept And USP
When starting a restaurant, you need to have a distinct idea in mind, something that will help you stand out from the crowd and compete against your competitors. This will provide you a competitive advantage in Dubai’s highly competitive restaurant market. The service style of your restaurant, the cuisine you provide, and the environment of your restaurant are all part of your restaurant’s conceptualization process. Another thing to think about is what your restaurant’s unique selling proposition (USP) is.
Because of this, do something that has never been attempted before!
4. Deciding A Location
Because Dubai is home to more than two hundred different nationalities, restaurant owners have a broader range of options and are able to cater to a variety of customers based on the sort of restaurant they operate. Before you select a site, be sure to do some research on that area and its demographics. You should also determine whether or not that location has adequate foot traffic to support your restaurant’s operations. The location of your restaurant is extremely important in determining whether or not your restaurant will be a hit or a miss with the Emiratis and visitors.
- Visibility– Choosing a prominent location for your business is really important. Make sure there is a lot of foot traffic and that your business sign is visible. Accessibility– Having your business located in an easily accessible location makes a significant impact. People that can easily get to your restaurant are more likely to return to your establishment as a result of the simple accessibility feature. Customer Base– It is critical to first define your target audience before proceeding to choose the most appropriate venue for that audience base. Affordability– If the rent is too expensive, it may be difficult to turn a profit on specific food items. If the preceding pattern holds true, do your study to determine if there are any prospects of the lease increasing in value. Proximity to Suppliers– The transportation charges can often be more expensive than the initial cost of the raw materials, hence proximity to suppliers is important. The location of your restaurant’s supplier, as well as the distance between your restaurant and the supplier, are important considerations.
Some of the most desirable sites in Dubai to launch a restaurant include:
- Emirates Hills
- Dubai Creek
- Mall of the Emirates
- And Al Quoz are just a few of the neighborhoods that make up the Jumeirah neighborhood.
If you want to open a specific style of restaurant, you may choose a location from a list of available options. For example, if you are planning to operate a fine dining restaurant, Jumeirah Beach Road would be a good site for you because it is a wealthy neighborhood.
5. Creating The Menu
In order to successfully open your restaurant’s doors, you must first curate the menu and determine what will be included on it. It’s also important to construct your menu in the proper manner, as well as pick and price the menu items effectively, in order to cover yourPrime Cost, which comprises both your cost of goods sold and your labor costs. In addition, you must carefully create your menu such that your clients are more likely to purchase the high-profit products on the menu. This may be accomplished by strategically placing high-profit goods in prominent locations that attract the greatest attention, as well as by crafting enticing menu descriptions.
As you learn more about which foods sell well and which do not, you may gradually make adjustments to your menu as needed.
6. Designing The Restaurant Layout
Creating a restaurant layout may be a daunting task, but it is an essential stage in the process of opening a restaurant. The way your restaurant is planned up has a huge influence on the way it operates on a day-to-day basis. It will assist in the daily operations of your restaurant by offering a sufficient amount of room to move around freely, as well as assisting in the creation of a positive impression on your customers by ensuring that all activities are completed quickly and efficiently.
Make effective use of the given space and arrange all of the pieces in a strategic manner.
After you’ve defined the fundamental plan of your dining room, you can begin designing and decorating it.
7. Investing In The Right Technology
In today’s technologically advanced world, it is impossible to ignore the significance of technology. Investing in an effective point-of-sale system is critical when beginning a restaurant since it will assist you to operate more efficiently in the long term. When you are a restaurant owner, you are supposed to be everywhere at once, managing multiple departments. However, this is a very physically demanding and practically impossible work. The use of technology becomes increasingly necessary if you want to keep an eye on the day-to-day activities.
- Billing: A well-designed POS system can handle billing processes with ease. If you own a restaurant, billing is one of the most important tasks you have to perform. As a result, you can completely rely on the system to minimize any errors. It can also assist you in determining the preferred way of payment for a consumer and developing offers based on that preference. Pushing Orders: POS systems help you push the orders straight to the kitchen which removes any delays and misunderstandings
- Stock Inventory Management: Using a POS, you can easily manage your inventory levels. You can find out how much raw material is required or how much is currently available by checking the website. Inventory management correctly can assist you in managing your money sensibly and preventing any losses, which is extremely important for anyone just starting out in the restaurant sector. Accurate Reports: Using a POS system, you can generate real-time reports and evaluate them on the fly, eliminating the need to be physically present at all times. Marketing: A POS system not only allows you to manage your restaurant’s operations, but it also allows you to reach out to your consumers and help promote your restaurant to them by sending them emails, SMS, and other forms of communication. A POS system can also be used to manage customer loyalty programs.
All of these features will assist you in managing the day-to-day operations at your restaurant in a flawless manner, which is essential if you want to build a name for yourself in Dubai’s food and beverage market.
8. Hiring Qualified Staff
A reputable restaurant with excellent service is clearly shown by having excellent personnel; consequently, it is critical to hire the greatest possible employees for your restaurant’s success. The restaurant sector in the Gulf area has a high turnover rate, making it critical to hire employees who will stick around and contribute to the growth of your company. Before you begin hiring, you should think about the various positions for which you would like to hire people.
- Cooks for the preparations
- A manager
- Bartenders (if you intend to sell alcoholic beverages)
- A host
- And cleaning personnel
Some of the most fundamental common staff needs for all restaurants are listed here, and you will need to fill these positions before your restaurant can officially open its doors. You can begin with the bare minimum of staff and progressively increase the number of employees as and when the demand arises. Although starting a restaurant might appear to be a time-consuming endeavor, it can be extremely lucrative if done right. Dubai is a fantastic platform for young entrepreneurs and is full of exciting prospects to grow their businesses.
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Open a Restaurant in Dubai
Foreign investors who come to Dubai in order to establish their own enterprises have a plethora of possibilities to choose from. The food industry is one of the most successful economic sectors in Dubai, and individuals looking to start a business in this field may select from a broad variety of different sorts of enterprises. Opening a restaurant in Dubai, for example, may be a highly profitable business venture, especially given the huge earnings that can be realized relatively rapidly. For international businesspeople, establishing a restaurant in Dubai might be a highly profitable financial option.
Our local consultants have years of expertise in company creation in Dubai and are here to answer any questions you may have about starting a restaurant business in the Emirate.
Contact us now for more information. Furthermore, you may count on us to assist you with the registration of your firm with the appropriate government agencies.
The Food Code in Dubai
The Food Code contains the majority of the rules and regulations that apply to the establishment of restaurants in Dubai. Restaurant owners and operators can benefit from the Food Code, which was established to give principles for food safety and laws that must be adhered to while operating a food outlet in Dubai. The Food Code was developed in accordance with other food regulations in nations such as the United States and Australia. The Dubai Food Code also incorporates the laws and regulations established by the Food Control Department in the United Arab Emirates.
The regulations of the Dubai Food Code apply to the following types of food enterprises in the city:
- A variety of restaurants and cafés, hospital and school canteens, bakeries, supermarkets and grocery shops, catering units, and food manufacturing facilities
Choosing the right business form for the Dubai restaurant
If you want to start a restaurant or any other form of food business in Dubai, the first step is to determine the type of business structure that will be utilized for the organization. The limited liability corporation (LLC) is the most ideal business structure for a restaurant since it is the most straightforward to establish. The business owner must next determine whether the firm will be registered on the Dubai mainland or in one of the city’s free zones. Regardless of whether option is selected, the restaurant will be subject to the same registration and licensing procedures.
Obtaining a license for a restaurant in Dubai
If you want to start a restaurant or any other form of food business in Dubai, the first step is to decide on the type of business structure to utilize. The limited liability corporation (LLC) is the most appropriate entity for a restaurant since it is the most straightforward to establish. After that, the business owner must determine whether the firm will be registered on Dubai’s mainland or in one of the city’s special economic zones. Any restaurant, regardless of the option made, must comply with the same registration and licensing criteria.
- Storage and preparation areas for food
- Hygienic spaces such as toilets
- Windows and ventilation system
- Position of equipment used in food preparation
- Entry and exit passageways
- And location of washing machines are all important considerations.
In addition, it is critical to understand that the restaurant must be located at least 30 meters away from trash disposal sites that might potentially cause contamination, and that at least 10 meters of the area surrounding the restaurant must be maintained clean at all times. You can also learn about the basic prerequisites for starting a restaurant in Dubai by watching the video below:
Types of licenses for opening a restaurant in Dubai
When opening a restaurant in Dubai, there are a number of permits that must be secured. These are some examples:
- It is necessary to obtain the following licenses: a trade license, which is issued upon company registration
- A food license, which grants the business permission to process and handle food
- A construction license, if the owner wishes to operate the restaurant in a new building
- A liquor license, which necessitates special attention and must be obtained from the police department
- And a no objection letter from the Dubai municipality.
Other specialized licenses that may be obtained include a food truck license, which is provided for delivery services; however, most of the time, this license is necessary for catering restaurants and other food-related businesses. In Dubai, a pork permission can be obtained for the purpose of serving pork meat, as well as a Ramadan license.
We would like to remind investors that these are not required licenses. We can provide you with complete information on the licensing requirements for opening a restaurant in the Emirate of Dubai, provided by our business registration advisers in Dubai.
Documents required to obtain a food license in Dubai
For the purpose of establishing a restaurant in the Emirate of Dubai, the Food Safety Department needs the submission of the following documents:
- The Department of Economic Development provided its initial permission
- This was the first time this had happened. the arrangement of the premises
- If the restaurant is located outside of a retail area, it must obtain clearance from the Planning Department.
A variety of other specialized permits will be necessary, depending on the nature of the establishment.
Food safety requirements in Dubai
In Dubai, all restaurants are mandated to hire competent employees as soon as they open their doors for business. The Person in Charge of Training will be responsible for carrying out this work, and he or she will be required to complete an authorized training course. In order to assure food safety, the restaurant must additionally secure the following permits from the government:
- A food consignment release license
- A pork permission for the handling and serving of pork products
- A vehicle permit for the transportation of food products
- And a food handling and serving permit.
Moreover, the Food Code of Dubai establishes certain requirements for the import and export of food goods.
Obtaining a liquor license for a restaurant in Dubai
Those who wish to offer alcoholic drinks in their restaurants in Dubai must apply for a liquor license, which is subject to specific requirements and restrictions. The applicant must be a non-Muslim who is at least 21 years old, hold a Dubairesidence permit, and earn at least 3,000 Dh per month in order to be considered. The last condition, which is connected to the minimum wage, applies to individuals who sell alcoholic drinks in a free zone in Dubai, and it is as follows: When applying for a liquor license, the police station officers will demand a trade license from businesses such as restaurants in order to process the application.
- A fire safety certificate
- An estimate of the costs associated with selling alcohol in a restaurant
- Personal information about the applicant that complies with the above-mentioned requirements
- The layout of the premises where alcoholic beverages will be sold
- Information about the location where the alcohol is stored
The standards for selling alcoholic beverages for operating a restaurant in Dubai are quite strict; yet, this is one of the few emirates that allows the serving of alcoholic beverages in approved venues. The facility where alcoholic beverages are stored must receive special attention because it must be subjected to stringent controls. The liquor license has a one-year expiration date and can be renewed once.
Requirements for the construction of a restaurant in Dubai
As a first step, the location for a restaurant must meet all of the requirements for a food facility, as well as provide sufficient and adequate space for the equipment required for this sort of operation. The structure must allow for easy cleaning and removal of debris and smoke, as well as the ability to leave the area quickly. Pests must not be able to enter the structure through any openings. The food must only flow in one direction at all times. The utensils that are used to create the meal must be kept in an enclosed place so that they do not become contaminated.
For the development of a new restaurant company in Dubai, the following standards must be adhered to:
- A good ventilation system with a 2-meter-high chimney is required
- The walls, ceiling, and floor of the kitchen are required to be fireproof and washable
- The kitchen must have separate basins for washing utensils, vegetables, and meat
- The drainage pipe must be located a safe distance away from the kitchen
- And the drainage pipe must be located a safe distance away from the restaurant.
Other criteria may also be applicable, which is why it is essential to thoroughly review the applicable legislation in this context.
Contact our company formation agents in Dubai for further information on all of the regulations of the Food Code as well as the stages involved in forming a business. In order to start a restaurant in Dubai, you will need assistance with the business incorporation process.
Restaurant License in Dubai
Dubai has risen to become one of the most popular tourist destinations for people all over the globe; in fact, it is now ranked among the top ten tourist destinations in the world. With resorts, magnificent structures, eye-catching scenery, and a welcoming atmosphere, Dubai has achieved widespread success. The government has played an important part in this achievement. These are the causes that drive individuals to migrate to Dubai in quest of employment and business opportunities. A significant amount of expansion has occurred in the food & beverage sector in Dubai and Abu Dhabi.
Dubai’s restaurant industry has benefited from the contributions of chefs from Asia, Europe, Australia, and America, among other places.
How to open a restaurant business in Dubai?
Opening a restaurant in Dubai might be a difficult endeavor for a first-time entrepreneur. As a result, you must meticulously plan each and every action, as failing to do so might result in you getting into difficulty with the authorities. See what it takes to start a restaurant in Dubai by going through the process step by step.
Step 1: Acquiring FoodTrading licenses
In order to start your business, you must first obtain your food and commerce permits from the appropriate authorities. You must contact the Department of Food and Safety for a food license, whereas a trade license may be acquired through the Department of Economic Development (DED), which would cost you roughly AED10,000 to AED12,000, as well as the Department of Tourism and Commerce Marketing (DTCM).
Step 2: Selecting a location
Following that, deciding on the ideal site in Dubai would be the next big step. One of the first considerations would be determining whether to operate on the mainland or within one of the free zones. It is important to obtain clearance from the DED authorities in order to operate a restaurant in the mainland area (where a company can be founded with the assistance of a local sponsor). The mainland region may provide you with the opportunity to trade, but the sponsor will retain 51 percent of your shares, with the remaining 49 percent staying in the possession of the proprietor.
Free zone zones will enable you to own 100 percent of your shares and may not need you to have a local sponsor, but they may limit the amount of trade you may do in your region.
For example, if you intend to provide Indian or Pakistani food, you must identify and target the appropriate group of clients who are interested in this style of cuisine in advance.
So, in order to gain an understanding of some of Dubai’s most well-known neighborhoods, you’ll need to seek professional counsel or engage in business consultancy in Dubai.
Step 3: Drafting a business plan
Developing a professional restaurant business plan will necessitate the inclusion of all necessary elements such as SWOT analysis, target marketing, financial planning, developing a contingency plan for unexpected events, market research, your cash flow projections, break-even analysis, and other considerations as well. All of the factors will lead to the expansion of your company.
Step 4: Estimating cost and expenditure
The final and most crucial item to consider before opening your restaurant is to have a comprehensive financial plan in place so that you can keep track of how much money you will need to spend on the venture. What is the expected cost of this sort of restaurant? Is it possible to estimate the cost of personnel and pieces of equipment? What will be the cost of acquiring a license? In the restaurant industry, estimating all of the investment and spending may be a difficult process to do. Aside from that, one must consider expenses such as:
- Approximately AED10,000 per year for a local sponsor charge. An annual trade license charge of roughly AED10,000 to AED12,000 for the DED
- A maximum of AED8,000 for labor and immigration registration
- The rent for the restaurant premises ranges from AED60,000 to AED200,000 (depending on the location)
Architectural Requirements for a New Restaurant Business in Dubai
- The kitchen must be at least 300 to 380 square feet in size (if there is a tandoor in the kitchen), or 40 percent of the total floor space of the restaurant
- A tandoor in the kitchen is required. There should be adequate ventilation, and the chimney should be at least two stories above the next structure. All of the materials used on the walls, floor, and roof should be washable, non-absorbent, and fireproof.
- Washing utensils should be done in one basin
- Vegetables should be washed in another, and meat should be washed in a third
- It is necessary to have a facility for storing various sorts of food goods. The drainage pipe should be at a distance of at least 2 inches from the wall
Documents Required for Starting a Restaurant in Dubai
There should be a sink for washing the utensils, a separate sink for cleaning the veggies, and a separate sink for cleaning the meat; and It is necessary to have a facility for storing various sorts of food products. The drainage pipe should be at least 2 inches away from the wall; otherwise, it will cause flooding.
- The following documents are required: a trading license
- A food and safety license
- A Non-Objection Certificate (NOC) from the Dubai Municipality
Aside from these, there are a variety of other options available, including: It is necessary for every existing and new restaurant company in Dubai to have all of the aforementioned paperwork in order to conduct its operations without intervention or closure by the government.
Even while starting a new restaurant business may appear to be a difficult undertaking, it can be a goldmine of cash if done properly. The food business is a sector that has never seen a downturn in its historical performance. So, if you are interested in starting a business in this field, please contact us to take the first step in establishing your enterprise.
Opening a Restaurant in Dubai? We have all the Answers
Food and beverage businesses in the Middle East are extremely profitable, as the region is known for having a wide variety of delectable culinary treats to offer. In addition to local cuisines, one may discover cuisines from other parts of the world, since individuals from all over the world travel to the UAE and bring with them the food culture of their home country, as well as cuisines from other regions of the world. One of the primary reasons why individuals come to areas in the United Arab Emirates such as Dubai is to sample international cuisine and broaden their travel experiences overall.
In the last one and a half years, about 2000 new eateries have opened their doors in Dubai alone.
Food and Beverage Industry in Dubai
There is something known as the ‘Food Code’ in Dubai that must be followed when starting a restaurant company there. It is the Food Control Department of Dubai Municipality’s endeavor to assure food safety from the point of food production all the way to the point of consumption that has resulted in the establishment of the Food Code. Basically, it’s a program that aims to guide the primary point of contact at a restaurant while also attempting to instill food safety standards throughout the business.
The food code described above applies to the following categories of commercial establishments in Dubai:
- Restaurants, hotels, cafeterias, and cafés
- Institutions that provide foodservice in schools and hospitals
- Butcheries Supermarkets, grocery stores, and department stores are examples of this. Food processing plants and storage
- Catering services, supplies for the cruise ship, desert camps, events, and canteens are some of the services offered. Kiosks, temporary and permanent food events, and mobile vending operations are examples of businesses that produce and supply food packaging materials.
Catering businesses such as restaurants, hotels, cafeterias, and cafés, as well as bakeries and butcheries, as well as foodservice operations in schools and hospitals Food stores including supermarkets and grocery stores, as well as department stores; facilities and warehouses dedicated to the production of food Catering services, supplies for the cruise ship, desert camps, events, and canteens are some of the services we provide.
Kiosks, temporary and permanent food events, and mobile vending operations are all examples of businesses that deal with food packaging materials.
Restaurant License in Dubai
Restaurants, hotels, cafeterias, and coffee shops; bakeries; butcheries; foodservice operations in schools and hospitals; and other foodservice establishments. Supermarkets, supermarket chains, and department shops; Food manufacturing plants and warehouses; Catering services, supplies for cruise ships, desert camps, events, and canteens are all available. Manufacturers and suppliers of food packaging materials; kiosks, temporary and permanent food events, and mobile vending operations;
A trade license is provided by the Department of Tourism and Commerce Marketing for the establishment of a business in Dubai. The sort of food institution in which you intend to operate must be suited for your business. Important since it will be stated in the license that you will be able to obtain. Following completion of this phase, you must submit your building plans to the Dubai Food Control Department for review and approval, following which you will be issued a trade license.
The Food Safety Department in Dubai is responsible for issuing food licenses. This license will assist the company in its dealings with food goods in the United Arab Emirates. There are a number of papers that must be submitted in order to receive this type of license. The following papers must be shown to the food safety department in order to receive a cafeteria license or to operate any type of food company in the Emirate of Dubai.
- The original or a copy of the trade license or principal approval from the authority that issued the trade license
- If necessary, the interior design plan of the property should be included. This is essentially a plan for your restaurant, and it must have the following elements in order for it to be successful:
- The original or a copy of the trade license or principal approval from the authority that grants the trade license If relevant, the layout of the interior design of the building. A plan for your restaurant that must have the following elements in order for it to be successful:
- It is also necessary to obtain clearance from the planning department in the event that the restaurant is located outside of the commercial center
You must also submit an application to the Food Safety Department for a Notice of Compliance on Food Establishment Trade License. This service will allow you to complete the procedure for granting a trade license for a food activity or facility that is offered by the Department of Economic Development (DED), such as the Jebel Ali free zone, Dubai investments park, and so on. The amount for a food establishment permit is 10,000 AED plus service charges.
In addition, you must submit an application to the Food Safety Department for a Notice of Compliance on Food Establishment Trade License. This service will allow you to complete the procedure for granting a trade license for a food activity or facility that is offered by the Department of Economic Development (DED), such as the Jebel Ali free zone, Dubai investments park, and so on. Fee for a permit to operate a food restaurant is 10,000 AED each service.
- Application form
- A photocopy of the passport
- An application fee
- And two photographs
It is important to note that the government of Dubai levies a 30 percent tax on the sale of alcoholic beverages, in addition to various costs that must be paid in connection with the sale of alcoholic beverages, such as a charge for importing alcoholic beverages and a fee for selling alcoholic beverages.
To get more information about licenses and pricing, you may get in touch with the Commitbiz Business Consultants.
Cost of Opening a Restaurant in Dubai
The planning, development, and compliance with government regulations are all necessary for establishing a restaurant business in Dubai, which means you must set aside a budget for your company’s start-up. The costs associated with establishing a cafeteria in Dubai might vary based on a variety of criteria such as the location, commercial space available, number of employees, and other considerations. Aside from planning the company and developing menus and pricing points, it is also necessary to include in the costs of government regulations and approvals.
Food Safety Measures
When a restaurant first opens its doors, it needs hire qualified employees to run the establishment. As the person in charge of training for the restaurant, he or she will pick this individual who will be accountable for the overall running of the establishment. This individual must also receive specific training in order to be able to carry out the business tasks in a straightforward and error-free method. The following are examples of other special permits:
- When a restaurant first opens its doors, it needs employ competent employees. As the person in charge of training for the restaurant, he or she will pick this individual who will be accountable for the overall management of the firm. Moreover, this individual must have specific training in order to be able to carry out commercial duties in a simple and error-free manner. The following are examples of other special permissions :
The new Dubai food code, which went into force in 2013, establishes distinct standards for the import and export of food goods. When it comes to business creation in the food and beverage industry in Dubai, this information may be useful.
Key Factors for Dubai Restaurant Construction
In order to start a restaurant company in the United Arab Emirates, there are several considerations that must be taken into consideration. Before any work can begin, it is necessary to obtain clearance from the food control division. The suggested kitchen design/layout plans and equipment information must be given by a registered engineering office in three copies in order to receive permission from the building department. Here is an example of a set of rules for setting up a restaurant.
- It is necessary for the walls, the floor, and the ceiling to be washable and absorbent as well as fireproof and softly colored, and there must be no cracks
- It is necessary to have appropriate ventilation and illumination. The kitchen must have a total space of 300 square feet or 40 percent of the overall restaurant’s total area, whichever is greater. Food commodities such as dry, cold, and frozen should be kept in separate storage areas. 380 square feet should be the bare minimum if a tandoor is to be installed in the kitchen. There must be washing facilities with both hot and cold water available.
It is critical to receive a letter of approval from the Dubai Municipality’s Public Health Department prior to starting any construction work in the city. If businesspeople do not cooperate, they may face more severe consequences. Entrepreneurs who want to start a Food and Beverage business in the free zone may expect to make a lot of money. The firm may take use of the numerous features of the free zone, as well as the various incentives offered in the food and beverage industry, to grow its operations.
With perks like as 100 percent ownership and tax-free company operations available in the Dubai Free Zone, establishing a business in Dubai is a fantastic opportunity that should not be missed.
So go ahead and start your own restaurant in Dubai right now! Please get in touch with us if you require further information. We will be happy to be of support to you. FAQs
Q. Can you open a Restaurant in Dubai?
In Dubai, it is possible to operate a restaurant; however, you must submit all of the necessary paperwork in order to do so.
How to Open a Restaurant in Dubai
Posted at 16:32:32 a.m. Dubai’s business environment With one of the fastest-growing economies in the world, a thriving infrastructure, and a stunning natural environment, Dubai is poised to become one of the most popular tourist destinations in the United Arab Emirates. International visitors come to Dubai to sample the city’s world-class food and to appreciate its specialties, which are renowned across the world. Entrepreneurs that seek to operate a restaurant in Dubai are attracted by the possibilities of the city.
How to Open a Restaurant Business in Dubai?
If you want to start a restaurant company in Dubai, you must carefully plan every stage of the process before making any financial investments. An overview of how to get started with your restaurant in Dubai is provided below.
1. Food Code and Licensing
To establish a restaurant company in Dubai, you must carefully consider each step before making any financial commitments. An overview of how to get started with your restaurant in Dubai may be seen below.
The Department of Tourism and Commerce is responsible for issuing and administering the trade licenses for all commercial activity in Dubai. You may obtain a restaurant license in Dubai by registering your restaurant company within the legal parameters established by the Department of Economic Development (DED).
Every business in Dubai is governed by the Department of Tourism and Commerce, which is in charge of issuing the trading licenses. By registering your restaurant company inside the DED’s legal borders, you will be able to get a Dubai restaurant license.
If you intend to serve alcoholic beverages and/or provide liquor services in your restaurant, you will need to get a liquor license.
2. Location and Ambiance
Another crucial consideration while planning ideas for your restaurant in Dubai is securing a prestigious site and creating an enticing environment. In Dubai, there are two possibilities for residential areas: the free zone and the Mainland. Free zone locations will allow you to own 100 percent of your shares without the need for a local sponsor to assist you. If you want to build a restaurant on the mainland, getting approval from the Department of Economic Development (DED) is critical. The sponsor will also receive 51 percent of your shares in the company’s mainland operations in addition to this.
3. Cost of Opening a Restaurant Business in Dubai
The costs associated with starting a restaurant company in Dubai will vary based on the location, the area utilized, the number of employees, the government procedure, the creation of menus, maintenance, and other expenditures made in the business. Approximately how much it is worth may be determined at the conclusion of this blog post.
How to Get a Restaurant License in Dubai
If you wish to open a restaurant company in Dubai, you will need to obtain two types of permits in order to do so.
Steps to Obtain a Trade License
Step 1: Determine the nature of your company’s operations (commercial, professional, or industrial). Describe the required corporate conduct of your organization in Step 2. Step 3: Identify the legal status of your company in the United Arab Emirates. Step 4: Create a trading name for your firm and register it. Step 5: Submit the application form to the Department of Environmental Defense. Step 6: Designate your business headquarters and complete the necessary registration paperwork. 7th step: Gather together all of the relevant paperwork.
Steps to Obtain a Food License.
The first step is to get your trade license authorized before submitting an application for a food license. In the second step, you must provide the blueprint of your ambience to the appropriate authorities. To complete Step 3, you, as the proprietor of your restaurant, must obtain clearance from the Food Control Department of Dubai for the Food Code you have created. Step 4: It is vital for you to include in your plan the location of your restaurant, food storage places, washing facilities, a chimney, and a separate basin.
What are the Documents Required for Starting a Restaurant in Dubai
A list of the paperwork you will need if you want to open a restaurant company in Dubai and obtain a restaurant license in Dubai may be found below.
- Certificate of registration with Ejari
- Food license
- Non-Objection Certificate (NOC) granted by the municipality of Dubai
- Typed BR/1 form
- Registration Certificate with Ejari a photocopy of the trading license that has been issued
- Passport-size photo
- Confirmation report of P.O box
- Memorandum of Association (MOA)
- DED letter authorizing your restaurant name
- Tenancy agreement form
- UAE ID Number
- Proof of payment
- And other documents as required.
What are the Architectural Rules for Opening a Restaurant Business in Dubai
To be able to operate in Dubai, every restaurant must conform to a number of significant architectural regulations. Listed below are a handful of the most essential rules:
- At a minimum, the cooking area must be three hundred square feet, or forty percent of the entire floor space of the restaurant. In order for the restaurant to function properly, it must have adequate ventilation and an exhaust system. The chimney should be taller than the nearest structure (at least two meters above ground)
- All of the walls in the restaurant should be washable as well as fireproof to a hundred percent. The same holds true for the roof and the floor. For washing dishes, vegetables, and fruits, you must have a separate basin (with both hot and cold water choices) and a separate washing place for meat. Food items that need to be stored dry, cold, or frozen require distinct storage facilities. Inspect the drainage pipe to ensure that it is at least two inches from the walls.
What is the Cost of Opening a Restaurant in Dubai
Not to mention that managing your funds effectively is critical to the success of your company’s operations. Because no two restaurants are the identical, the expenditures associated with running a restaurant are also different for each one. AED 200,000 to AED 350,000 is the average cost of launching a restaurant in Dubai, depending on the kind of establishment. This cost covers all of the necessary operating expenses, such as business license, renting of premises, and permits.
1. Full-Service Restaurants
A full-service restaurant, being one of the most well-known types of eating establishment, needs extensive dining areas as well as vast storage and kitchen areas, among other things. An AED 300,000 to more than AED 500,000 investment is required to manage a full-service restaurant.
2. Delivery Restaurant
A delivery restaurant is a far more cost-effective alternative. These delivery restaurants, sometimes known as dark restaurants, are expanding at a rapid pace, necessitating the elimination of the requirement for eating area. Everything is as simple as setting up your kitchen and starting to roll out dishes. The expense of managing these eateries is between AED 100,000 and AED 162,000 per month.
3. The Hole-in-the-wall Restaurant
Using a delivery service is a far more cost-effective choice. These delivery restaurants, often known as dark restaurants, are expanding at a rapid pace, necessitating the elimination of eating area.
Everything is as simple as setting up your kitchen and beginning to roll out dishes. The cost of running these eateries is between AED 100,000 and AED 162,000 each month.
Seek Professional Help to Open Restaurant in Dubai
Now that you are aware with the steps involved in opening a restaurant company in Dubai, you can begin making plans for your ideal restaurant in the city of lights. Though the process of starting a restaurant company in Dubai is straightforward, it is recommended that you get assistance from qualified individuals. The business advisors at ShuraaBusiness Setup can offer you with appropriate direction and assistance in developing a business plan for your restaurant venture. Just contact us with your specifications, and we’ll take care of the rest.
Want to open a restaurant in Dubai? Five tips for success
With an understanding of the process of opening a restaurant company in Dubai, you can begin making plans for your ideal restaurant in the city. Although establishing a restaurant company in Dubai is a straightforward procedure, seeking assistance from qualified specialists is recommended. Having adequate direction and assistance in developing a business plan for your restaurant is available from the business consultants at ShuraaBusiness Setup, Inc. You only need to get in touch with us and let us know what you need, and we will take care of the rest.
1. Constantly re-engineering menus
It’s critical to keep up with the latest cuisine trends and to change your menu accordingly. EPADubai’s population are fickle, and the restaurant sector reflects their insatiable appetite for the latest fashions and culinary trends. Menus must be re-engineered every three to six months, according to Gabrielle Mather, the chief executive and creator of UAE food consultant Restaurant Secrets. To be able to draw inspiration from all across the world, restaurant owners must bring on the proper people, such as Michelin-starred chefs and innovative mixologists, according to Ms Mather.
“Having regular activations and partnerships with other businesses is an efficient strategy of maintaining your brand’s popularity.
2. Budget for staff training
It’s critical to keep up with the latest cuisine trends and to change your menu as appropriate. EPADubai’s population are fickle, and the restaurant sector reflects their insatiable appetite for the latest fashions and cuisine. Gabrielle Mather, chief executive and creator of UAE food consultant Restaurant Secrets, believes that menus must be re-engineered every three to six months if they are to remain relevant in the marketplace. To be able to draw inspiration from all across the world, restaurant owners must bring in the necessary people, such as Michelin-starred chefs and innovative mixologists, according to Ms Mather.
“Regular activations and partnerships with other businesses are an excellent way to maintain the popularity of your brand.
3. Take waste management seriously
Food that is left over after a hotel buffet is usually thrown away. Robertson, Antonie, and The National. When it comes to per capita garbage creation, the United Arab Emirates is one of the worst countries in the world. According to Dubai Carbon, over 38 percent of the food made every day in Dubai ends up in the trash, with this percentage increasing to almost 60 percent during Ramadan in previous years. Decomposing food releases methane gas, which is 25 times more harmful to the environment than carbon dioxide, according to some estimates.
“If you recruit specialists, they will believe in your brand and will experience a feeling of belonging to your organization.
In order to prevent pricey steak from ending up in the trash, it is vital to have a firm grasp on inventory control.
4. Invest in Instagram marketing
When it comes to marketing your new restaurant, social media is critical. Getty A good reason why the phrases “Dubai” and “Instagram” are synonymous is because marketing on the social media platform is more effective in the emirate than it is practically anyplace else in the globe. Managing a restaurant’s social media accounts is critical for presenting the brand and connecting with consumers, according to Ms Mather, and it should be treated with respect. “This is why allocating a budget for a social media specialist with the necessary abilities is critical,” she explained.
Many people choose where to dine while browsing through their social media feeds, so make sure your establishment stands out.”
5. Choose your kitchen and contractors very, very carefully
Ms Mather said that any restaurateur seeking to operate a high-quality restaurant on time should expect to pay a premium for their services. When it comes to projects, she says that cutting expenses by hiring a less expensive contractor would just end up costing the client more money down the road. Despite the fact that delayed openings are not unusual in Dubai, delays may be prevented by bidding out the construction contract and requesting references. Restaurant owners should double-check their contractor’s prior work before hiring them, because the fit-out of food and beverage units might differ significantly from other types of construction.