However, the average cost of opening a small, independent, restaurant ranges from AED500,000 to AED1. 25mn depending on the size of the restaurant and lease costs. This is based on restaurant space ranging from 500sqm to 1,200sqm. Capital costs, rent, and working capital comprise 78 percent of total money outflow.
How much does a restaurant cost in Dubai?
The full-service restaurant According to consultancy Restaurant Secrets, the average rents for a prime location from Downtown Dubai to Jumeirah can cost anywhere are currently between $70 to $275 per square foot.
How can I start a small 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.
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 does it cost to open a small restaurant?
The cost of starting a restaurant can be anywhere between ₹5 lakhs to ₹2 crores. Higher the budget, higher the profits – but if you are a new restaurateur, it’s safer to start a small restaurant/fast food business. Use consultants & chefs to create a menu.
Is food expensive 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 a business license cost in Dubai?
From small and medium enterprises to multinational companies – all types of businesses need to be licensed to operate legally. If you are wondering how much a small business license cost in Dubai, then the quick answer to that is minimum AED 8000 to AED 10000 (approx.).
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.
How can I open Indian restaurant in Dubai?
How To Open A Restaurant In Dubai
- Costs To Consider Before Opening A Restaurant.
- Obtaining A license For Opening A Restaurant In Dubai.
- Determining Your Restaurant’s Concept And USP.
- Deciding A Location.
- Creating The Menu.
- Designing The Restaurant Layout.
- Investing In The Right Technology.
- Hiring Qualified Staff.
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.
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.
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.
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 successfully run a restaurant?
Stellar Tips On How To Run A Successful Restaurant Business
- It’s All About the USP.
- Choose Your Location Wisely.
- Keep Your Restaurant Costs In Check.
- Keep An Eye On Your Stock & Inventory.
- Train Your Staff And Keep Them Happy Too.
- Leverage Restaurant Technology For Operational Efficiency.
- Remember, The Customer Is King.
How much does it cost to open a restaurant in Dubai?
It’s reasonable to assume that, at some time in their lives, almost everyone has fantasized of launching their own restaurant business. Some of us are brave enough to take the risk, but not everyone is cut out for success in the competitive world of the restauranteur. Let’s presume, though, that you’re reading this because you have a fantastic concept and the determination to see it through to completion. You do, however, have one vital issue on your mind: how much does it cost to operate a restaurant in Dubai, and how long does it take?
This is the most popular sort of restaurant since it provides full-service dining as well as delivery.
According to the consultancy Restaurant Secrets, the typical rent for a great location in Dubai, from Downtown to Jumeirah, may cost anywhere between $70 and $275 per square foot at the moment, depending on the location.
The cost of designing and building your restaurant will range from $150 to $600 per square foot, but larger units will often have a higher operational cost due to the additional labor, maintenance, utilities, and seats required to generate sufficient rent.
- It’s a balancing act.
- Running a restaurant is all about the average expenditure per person vs the number of people served per day.
- The average cost to establish a business in a great location in Dubai is often approximately $500,000 or higher, including all expenses.
- According to Restaurant Secrets, delivery is booming, and dark kitchens are far more economical than they used to be, as you only need a kitchen of roughly 19 to 21 square metres to get started in most cases.
- Keep in mind, though, that you’ll need to be located within a certain radius in order to optimize delivery in the immediate area, so being too far away from the action may not be advantageous.
- In addition, you would not be need to pay for service employees, and you will be able to theoretically operate various brand ideas from the same kitchen.
- These have flourished as a result of the pandemic period, and for good reason.
- Although you’ll need to keep things modest and focused, the sky’s the limit if you do it well, the possibilities are endless.
- The location must be in a livable residential or business neighborhood, and delivery will almost certainly be required.
- Starting a business costs an average of $250,000 if you have the correct location, product, packaging, web presence, brand building, and can hire a strong team.
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Opinion: How much money do you need to open a restaurant in Dubai?
Restaurant Secrets Inc., a UAE-based restaurant consulting firm, breaks down the expenses of launching three types of restaurants in Dubai within successful budgets. Gabrielle F. Mather, CEOFounder, Restaurant Secrets Inc.UAE-based restaurant consultants, Restaurant Secrets Inc. The typical capital expenditure (Capex) for a full-service restaurant is from $500,000 to $1,000,000, with a minimum of $100,000 for a dark kitchen model and a range of $250,000 to $250,000 for a hole in the wall, concentrated concept.
- (RSI), followed by questions about the expenses of a business plan and how to find a suitable site for a restaurant.
- “In this article, we look at three main types of restaurants that have been most relevant and in demand since the pandemic began, and we share our insights based on hundreds of restaurants that Restaurant Secrets Inc.
- Mather, CEO and Founder, Restaurant Secrets Inc.
- This is the most common sort of food service business, and it is based on providing a complete eating, service, and delivery experience.
- The typical rent for a great location in Dubai, from Downtown Dubai to Jumeirah, can range from USD 70 to $275 per square foot, depending on the area.
- The yearly rentals for such units might range from USD 70,000 to more than $1,000,000 per unit.
- The larger the unit, the greater the unit’s running costs, which include labor, maintenance, utilities, and the number of seats required to turn over the rent.
In F B, it is all about the average spend of a person rather than the number of individuals served on a daily basis.
The average capital expenditure (Capex) is from $500,000 to $1,000,000 for a premium location, Instagrammable interiors, a fantastic product, and an overall excellent brand, including marketing and personnel costs.
With many dark kitchens providing low rental costs, this is now the fastest-growing industry in F B, with the typical size of a dark kitchen being 19-21 square metres.
It would be necessary for the area to be within a large delivery radius that is densely inhabited in order to assure profitability.
Two advantages of using a dark kitchen model are that you can run different brands from a single kitchen and that there is no need for a service crew.
Model 3: the hole in the wall, an idea with a clear emphasis Since the outbreak of the epidemic, the hole in the wall restaurant format, which has an average size of 1,000 square feet, has grown increasingly popular.
It is necessary to have a short, concentrated menu, and any cuisine may be employed if the pricing and portioning are done correctly.
To be successful, a hole in the wall venue must have a viable residential and business mix in addition to a well-thought-out delivery plan.
An average capital expenditure (Capex) of $250,000 and more is necessary for a feasible location, outstanding product and packaging, an internet presence, as well as an overall excellent brand, including marketing and personnel costs.
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 rising as one of the world’s premier cuisine destinations, and establishing a restaurant in Dubai might prove to be incredibly 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:
- Rental fees or the cost of purchasing a new home are additional expenses. Permissions, a staff training program, software for everyday operations, insurance, and working cash are all important considerations. The cost of setting up the restaurant – including equipment, tables, seats, and other furnishings
The following are some of the early costs associated with establishing a restaurant business:
2. Obtaining A license For Opening A Restaurant In Dubai
These are some of the early expenses you’ll have to deal with while starting a restaurant.
(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.
Emirates Hills; Dubai Creek; Mall of the Emirates; and Al Quoz are just a few of the neighborhoods that make up the Jumeirah neighborhood in Abu Dhabi.
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. Making Orders Available to the Kitchen: With POS systems, you can send orders immediately to the kitchen, eliminating 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.
- A reputable restaurant with excellent service is clearly shown by having excellent personnel
- Consequently, it is critical to hire the best possible employees for your restaurant’s operations. Since there is a significant turnover rate in the restaurant sector in the Gulf area, it is critical to hire employees who will stay and contribute to the growth of your company. Consider the numerous jobs for which you intend to employ people before you begin the hiring process.
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.
From 11 votes, the average rating is 4.4 out of 5.
Requirements, procedure and cost of opening a restaurant / cafeteria in Dubai
Opening a cafeteria in Dubai, United Arab Emirates, represents an excellent business opportunity, given the city’s high concentration of professionals from all over the world. Many of them are keen to sample new cuisine, despite the fact that the bulk of them are craving meals from their home nations. In addition, the hectic pace of the city leaves many people with little time to prepare meals. Dubai is located in the center of one of the fastest-growing middle-eastern economies, which is attracting the attention of foreign investors.
As a result, beginning a food business is not a simple undertaking, especially in an environment of intense competition.
If you want to build a cafeteria in Dubai, you must first get the necessary trade license from the Department of Economic Development (DED). However, in order to lawfully open a cafeteria in Dubai, it is necessary to get specific food and safety permissions from the Dubai Municipality.
Requirements for opening a cafeteria in Dubai
In order to assure food safety, your cafeteria must receive the following certifications:
- A license for the release of food consignments
- A permit for each and every vehicle that will be utilized for the transportation of food items
- A permission to handle and serve pork, or any of its by-products, in any capacity
The space chosen for the establishment of a café should satisfy the following specifications:
- Ideally, the location chosen for the café should match the following criteria:
Documents required to obtain a cafeteria license in Dubai
- Interior room for food preparation and storage
- Windows and ventilation system
- Entrance and departure routes
- Washrooms and other sanitary facilities
- The location of the washing facilities
- The location of the equipment that will be utilized to make the food
For food safety department-approved food license:
- The Department of Economic Development (DED) has given preliminary permission. The design of the building’s interior
- If the cafeteria will be placed outside of a retail center, approval from the planning department is required.
For trade license approval from the Department of Tourism and Commerce Marketing:
- A written application signed by the company’s management
- It is necessary to have a Memorandum of Association (MOA). DED permission letter for the company name, which has been attested. All of the company partners’ passport copies are required
Process of getting a cafeteria license in Dubai
- Decide on a name for the cafeteria and submit it to the DED for consideration
- For commercial collaboration, look for a local sponsor or service agent in your area. Maintain adherence to the food safety department’s recommendations
- For those looking to rent commercial space in Dubai to start a cafeteria, be sure to choose a location that adheres to the department’s requirements. Obtain the Ejari (tenancy agreement) for the rental property
- Submit all of the necessary documentation to the DED. Inquire about obtaining a No Objection Certificate (NOC) from the Food Safety Department as well as clearance from the Dubai Municipality
- Submit all of your documentation to the Department of Economic Development (DED) and obtain your cafeteria license in Dubai.
What is the cost of opening a cafeteria in Dubai?
Starting a cafeteria business in Dubai entails a lot of planning, growth, and compliance with government regulations. This means that you must put aside a budget for the creation of your organization. It is critical to understand that evaluating the cost of your company setup is dependent on a number of different elements. The establishment of a cafeteria in Dubai necessitates a significant commitment of both time and money. The costs associated with establishing a cafeteria in Dubai will vary based on the location, commercial space available, number of employees, and other aspects to be taken into consideration.
There are several factors that add to the cost of opening a cafeteria in Dubai. Given below is a breakdown of the various fees you can expect to incur:
- Reservation of trade names
- Tasheel costs for name reservation – AED 620
- Tasheel fees for first approval – AED 115
- Notarization fees for the Ministry of Agriculture
- Ejarifees (Tenancy Contract Attestation)
- And other expenses. AED 6,000 for the issue of a trade license
- AED 2,000 for the registration of an international trade name
- AED 100 for a company stamp
- AED 1,000 for the registration of an immigration card (establishment card).
Additional expenses include:
- The following charges are not included in the base price:
Start with Shuraa
Several customized company setup packages have been developed by Shuraa, taking into consideration all of the significant expenditures that you will pay during the first phases of launching your cafeteria business in Dubai. In addition to covering all of your trade license-related expenses, our comprehensive and reasonable packages also include other services such as investor visa renewals. In addition to the prices listed above, you will need to make investments in appropriate interiors, a kitchen, equipment, inventory, and other related items.
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The real cost of opening a restaurant in Dubai
Gabrielle F. Mather, CEO and founder of Dubai-basedRestaurant Secrets Inc. (RSI), a specialist food and beverage organization, breaks down the expenses of launching three distinct food and beverage companies in the United Arab Emirates. Model 1 is the FSR (First-Second-Rate) (full-service restaurant) This is the most common sort of food service business, and it is based on the whole eating, service, and delivery experience. It takes the greatest amount of resources to open and run. In a prime location, from Downtown Dubai to Jumeirah, the average rent ranges between USD 70 and USD 275 per square foot, depending on the building.
- Annual rentals might range from USD 70,000 to more than USD 1,000,000.
- Even while larger units have higher operating expenses, they can accommodate a greater number of passengers.
- It is critical to have a compelling concept, a fantastic product, and to adhere to industry standards in operational control in order to realize financial returns on investment.
- If you add marketing and staff expenditures in your calculations, the average capital expenditure (capex) ranges from USD 500,000 to USD 1,000,000 for a good location, Instagram-friendly décor, a wonderful product, and an overall excellent brand.
- This is the fastest developing industry in F B at the moment, with several dark kitchens available for rent at reasonable rates.
- A place without equipment may be rented for USD 2,000 to 2,200 per month, but a space with culinary equipment can be rented for USD 4,700 per month.
- Kitchen equipment can cost anywhere from USD 30,000 to USD 100,000 for a retail business, depending on the type of equipment required.
The most economical capital expenditure for a dark kitchen begins at USD 100,000 per square foot.
Since the outbreak of the pandemic, the hole-in-the-wall restaurant type, which has an average size of 1,000 square feet, has grown increasingly popular.
With proper pricing and portion planning, any cuisine may be employed with a modest and concentrated menu.
Given the restricted amount of available space, rents can be as low as USD 30 per square foot depending on location, and expenditures for employees and interior design will be kept as low as possible.
This approach is quite scalable, and it may be explored for growth as well as franchising opportunities in the future.
A clever location, outstanding product and packaging, an internet presence, as well as strong marketing and human resource budgets, all demand an average capital expenditure of USD 250,000.
Opening A Restaurant In Dubai? Here’s How Much It Will Cost You
Raise your hand if you’ve ever fantasized about starting your own restaurant. Have you ever given consideration to how much it costs? Friends, I’ll tell you what I’m thinking right now. It is not inexpensive. Cuisine from all over the world is available in Dubai, ranging from street food to fine dining, and a slew of gastronomic centers and haunts are popping up all over the place. When it comes to food, there is no better place to be, and if you have ever considered starting your own restaurant, you are not alone.
There are several information provided on distinct business models in order to provide a well-rounded picture of the costs associated with starting a restaurant in this area.
Want to open a hole-in-the-wall, a full-service restaurant, or invest in a dark kitchen? Here are the costs
Choosing the full-service business model is the best option for you if you want to manage a restaurant and provide your customers with a complete dining experience, including service and delivery. According to the survey, the full-service restaurant guide necessitates the most investment of time and money in terms of management, financial control, and location sourcing. In Downtown to Jumeirah, rents can range between $70 and $275 per square foot, with the typical leasing area ranging between 1,500 and up to 5,000 square feet.
The greater the size of your area, the greater your turnover, and other aspects that contribute to seeing financial returns include developing a solid concept, offering a superior product, and adhering to industry standards for operational management.
The dark kitchen
This business model is ideal for those who wish to manage a restaurant where they can provide their customers with a complete eating experience, including service and delivery. According to the survey, the full-service restaurant guide necessitates the most investment of time and money in terms of operation, financial control, and site selection. Rents in Downtown to Jumeirah may range between $70 and $275 per square foot, with the average leasing area ranging from 1,500 and up to 5,000 square feet in size.
The greater the size of your space, the greater your turnover, and other aspects that contribute to seeing financial returns include developing a solid concept, offering a superior product, and adhering to industry standards in operational control and management.
They estimate that the typical capital investment for restaurants that have a premium location, ‘Instagramable’ décor, superb product, and overall brand and marketing is $500,000 or more per restaurant.
Some of the most well-known concepts in the city began in small spaces and scaled up owing to loyal customers and word of mouth, while some of the most renowned concepts began in small spaces and scaled up thanks to loyal guests and word of mouth A limited menu, fewer employees, and minimal interior design all assist to keep costs down for this concept; nevertheless, you should still strive for a prominent location, a strong product, an internet presence, as well as factoring in additional marketing funds while developing this concept.
According to the article, the cost of a hole-in-the-wall would run you $250,000, which is very surprising.
When you see your dream of opening a coffee shop going down the toilet
Some of the most well-known concepts in the city began in tiny locations and scaled up owing to repeat customers and word of mouth, while some of the most renowned concepts began in small spaces and scaled up thanks to repeat customers and word of mouth However, you should still strive to have a prominent location, a strong product, an internet presence, as well as factoring in additional marketing costs for this concept.
This may be accomplished by having a modest menu, fewer employees, and minimal interior design.
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.
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 least 2 inches away from the wall
- Else, it will cause flooding.
Documents Required for Starting a Restaurant in Dubai
Several documents must be filed to the authorities before you can start your new restaurant or cafeteria company in Dubai. The following are the three most important paperwork that must be presented to the authorities:
- 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.
10 Most Common Reasons Why Restaurants Fail in Dubai
Failure to make a profit means that a restaurant is not worth the time and effort of the owner, and as a result, it will not be there for lengthy periods of time. But why do eateries fail in the first place? Yes, the restaurant industry is a highly competitive one. However, this is not the primary reason why eateries close their doors in the first place. The most common reason for a restaurant to fail is due to the fact that inexperienced owners and investors make several mistakes that might have been avoided.
- Just like that, the problem is solved.
- Why would it be logically easier to manage several units yet it would be more difficult to maintain the viability of a single unit?
- Therefore, a franchise brings “Operating and Financial Systems” that have been proved through time to the table.
- Cooking wonderful cuisine and selling it is not a viable business model!
- To generate money and be successful in the food company, you’ll need a lot more than just delicious meals.
- Small company owners, rather than giant organizations, are the ones that require systems and operations manuals, as well as standard operating procedures (SOPs).
- In the event that you do not choose to be a part of a franchise, developing and launching your own concept might be highly lucrative.
The good news is that you are capable of doing this task on your own.
Make a good plan!
Take a look at the ten most prevalent reasons why independent restaurants in Dubai fail to succeed.
These are important elements to consider when evaluating a location; if the location scores poorly on any of these factors, you should be prepared to decline whatever ‘amazing deal’ you believe you are being offered.
Ten percent or less of your annual sales turnover should be set aside for rent!
3.An inadequately prepared restaurant leasing agreement – Take the time to thoroughly study and comprehend the tenancy agreements you are going to sign!
The three reasons listed above are at the top of the list.
This is one of my personal favorites: Inadequate or inconsistent food and service as a result of a lack of SOPs (Standard Operating Systems).
What exactly are Standard Operating Procedures (SOPs)?
Daily chores are codified into protocols, ensuring that the kitchen continues to function efficiently no matter how many times a chef leaves!
It is presented with the same number of fries and cola at the same temperature, each and every time it is served.
Customers come back for consistency and efficiency in both product and service, and this is what they expect.
It indicates that your restaurant is functioning well as a result of systems rather than human mistake.
When developing your restaurant idea, don’t base it on your personal preferences or eating habits, but rather on market research.
To do so, develop a product that is most likely to be appreciated and patronized by customers, fill a market segment that is currently unfilled, and then design your menu to offer just that!
Become an expert in the market that your concept serves, and deliver those items in the appropriate size, packaging, and pricing range.
Combining beauty and utility is a winning combination!
In that particular sequence.
Too many restaurant owners become so engrossed in the design of the dining room that they spend much-needed cash that could have been put to better use in the kitchen or manufacturing area instead.
7.Undercapitalization and a lack of working capital – Make certain that you have sufficient cash and working capital set aside as contingency funds in your restaurant start-up and company plans before proceeding.
Believing that revenues would start flowing on the first day of operation — A new restaurant, like any other business, has a time-frame within which it must operate before it begins to generate profits.
After six months in operation, a well-executed food business might begin to see signs of progress toward financial viability.
Lack of a well-organized and implemented restaurant accounting system – This is the ninth reason for failure.
A well-organized and well-implemented accounting system may be incredibly simple to use while still being extremely effective.
This includes everyone from the man who cleans dirty dishes in a corner of your busy successful restaurant to the man who cleans dirty dishes in a corner of your busy successful restaurant every day of the week.
It is possible that your biggest asset is a well-motivated crew that receives frequent training and development chances.
Investing in staff training only during the pre-opening stage is a common mistake made by new restaurant owners.
With daily briefings, monthly training sessions, and frequent assessments, you can keep your employees highly engaged and well-trained.
After learning some of the most common causes for restaurant failure, you should have a better understanding of the research, analysis, and planning that must be done in order to realize your goal of running a successful restaurant or coffee shop in Dubai, UAE, or anywhere else in the globe!
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.
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
A trade license from the Department of Tourism and Commerce Marketing is necessary in order to start a restaurant in Dubai. It is also necessary for the restaurant owner to choose the proper sort of business that is acceptable for the type of food institution that he or she wishes to start, as the license will clearly identify the type of activity that the restaurant will engage in. Obtaining permission for the building designs, which must adhere to certain requirements, will be the second stage in the process.
The Food Control Department in Dubai is in charge of developing these requirements. The following information must be included in the architectural plans for the restaurants:
- 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:
- When establishing a restaurant in Dubai, a number of permits and licenses are required. They include, for example,
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:
- For the purpose of operating a restaurant in Dubai, the Food Safety Department mandates that the following documentation be submitted:
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 drinks are housed must get special care since 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.