All about Starting a Restaurant Business in Dubai

Dubai, a city that attracts about 4.7 million tourists annually, offers a great place to launch a restaurant business. If done properly, operating a restaurant in Dubai can prove to be incredibly successful. In 2022, the UAE’s food service sector brought in a profit of AED 40.6 billion, or $11.1 billion. Following the COVID-19 pandemic, increased tourist traffic contributed to the food service profit sector’s rise in 2022. The food service profit industry in the United Arab Emirates is expected to grow at a robust rate of more than 7% between 2022 and 2027.

These data clearly indicate the hidden potential of a restaurant business in Dubai. Entities planning to start a restaurant business can dive into this pool of opportunities where they can take their passion and love for cooking delicacies to new heights.

Dubai is quickly becoming one of the top global culinary destinations. Before starting a restaurant business in Dubai, you must meet certain business standards, just like in any other city. This blog will walk you through every step of opening a restaurant in Dubai, UAE.

Why choose Dubai for your restaurant business?

• Strategic location: Dubai is known for its multinational cuisines, and it is also a tourist attraction. Hence, for entrepreneurs, there is no other better location than Dubai to start a restaurant business and get a powerful head start.
• World-class amenities: Dubai provides you with one of the best infrastructure facilities, whether it be transportation, accommodation, entertainment, etc.; hence, your restaurant business can get all the necessary dynamics to get to the next level of prosperity.
• Easy set-up procedures: Starting a business in Dubai is not as complicated as it seems. Even newcomers can start their restaurant businesses easily with the assistance of professional business setup service providers. The entities can get the required services from professionals.
• Tax benefits: Dubai is known for the multiple tax benefits that it provides to business entities. Restaurant business owners can get their businesses set up in mainland or freezones based on their intention to save on tax payments or not.

Things to Consider Before Starting a Restaurant in Dubai

When preparing to open a restaurant, there are a number of factors to consider. We have put together a detailed list of these factors for you to go over. You can open the restaurant of your dreams in the rich city of Dubai with the help of this list.

1. Cost Calculation Before Starting a Restaurant 

Opening a restaurant requires a significant amount of cash, so you should list all of your costs before you open to prevent wasting money on pointless purchases or going over budget. Any restaurant owner worth their salt needs to know, at least roughly, how much they will be spending in advance. Before starting a restaurant, some expenses to take into account are: 

• Licenses 
• Rent or the cost of purchasing a new place for a restaurant 
• Permissions 
• Staff selection and training 
• Applications for day-to-day tasks like billing counters, etc. 
• Insurance for the restaurant 
• Working capital 
• The cost of the restaurant’s furnishings, including tables and chairs.

2. A license is required to open a restaurant in Dubai. 

Obtaining all the required permissions to operate a restaurant should happen even before you decide to reserve a time slot at your preferred location. To open a restaurant in Dubai, you must primarily obtain two types of licenses. 

• Trade License: Dubai’s Department of Tourism and Commerce Marketing is responsible for providing the trade license. The type of restaurant you intend to operate must be specified, as it must be made explicit in the license. To get the trade license, the entity must get approval from the DED after submitting all the relevant documents as per the instructions.
• Food License: In Dubai, the food license is issued by the Food Safety Department. You must obtain this license after obtaining your trade license in order to have your restaurant’s development plan approved.

3. Concept and Cuisine

Imagine you are planning to start a new themed restaurant. But Dubai has a wide variety of restaurants. What makes your idea unique? Is the attention on regional ingredients, a particular cuisine, or a unique dining experience? What would be the design and theme of your restaurant? Is this type of restaurant already present in your area?

There are a lot of questions to answer before jumping into getting your concept ready. To understand your target market, conduct an in-depth study about the competitive environment and current dining trends in Dubai. Create a menu that appeals to your target market and represents your concept. Make sure to include a good mix of crowd-pleasers and unique dishes.

4. Location

Find or buy a location that fits your budget, target market, and concept. Important considerations include visibility, parking alternatives, and accessibility.

Operating on the Dubai mainland entails more expenditures but has a larger reach than operating in a free zone. Free zones may have restrictions on who they serve, but they do provide certain advantages, like tax breaks. So, choose your location wisely.

5. Recruiting Staffs

Start recruiting a group of cooks, waiters, chefs, and kitchen workers. Although there is a wide pool of talent in Dubai, getting a work visa might be difficult. Make an investment in personnel training to guarantee outstanding food quality and service standards.

To stay out of trouble, get knowledgeable about UAE labour rules pertaining to employee visas, pay, and perks. If you are unaware of the rules and regulations, get help from professionals like CDA, who can help you take your burden off your shoulders.

6. Permits and licenses

In addition to trade and food licenses, several other licenses and permits are required to open a restaurant, including.

• Signage Permit: Secure a permit to display your restaurant’s signage outside your establishment.
• Music Licensing: Ensure you have the necessary licenses to play music in your restaurant, adhering to copyright regulations.
• License for the release of food shipment
• A pork permit is required to handle and serve pork products.
• Permit for a vehicle to transport food items.
• License to Serve Liquor (if you intend to serve alcohol in your business)

7. Marketing and Brand Building

Create a brand that speaks to your target market and captures the essence of your restaurant. Think about your website, social media presence, and logo design. To advertise your restaurant, make use of online resources like social media and directories for eateries. Develop collaborations with influencers and food bloggers. Make contact with neighbourhood media sources and plan events to create excitement and draw consumers.

 Document requirements for starting a restaurant business in Dubai

For a Dubai trade license

To get the trade license from the authorities, the entities must maintain the following documents with them:

• Approval letter from the DED
• A final draft of the business plan in detail
• Tenancy contract documents
• The restaurant’s blue prints, along with the floor plan
• MOA

For a food safety license

To get the food safety license from the authorities, the entities will have to maintain the following documents, as listed below:

• Copies of the trade license, the initial approval from DED, or relevant freezone authority
• A blue print of the restaurant premises includes:
• Entry and exit ways
• Food processing area
• Food storage area
• Ventilation and windows
• Food equipment location
• And other areas as instructed by the authority

Conclusion

Although reading this may appear simple, obtaining all of these licenses and opening your dream restaurant is a difficult task. You will be stuck everywhere if you don’t have a proper understanding of the UAE’s license, laws, and regulations. Here’s where we can assist you: At CDA, we have a team of professionals who can assist you at every stage and reduce the amount of work you have to do. 

Click here to find out more about “business set-up services in Dubai.”.

Set up your restaurant business in Dubai with CDA today.

Are you a chef or a food enthusiast who is looking to start a restaurant business or cafeteria in Dubai? Look no further. It might be intimidating to select the best location, get the documents sorted, get the approvals from the authorities, get the license issued by the authorities, get the visa for the employees, etc. for a newcomer who doesn’t have any idea about starting a restaurant business in Dubai. In such a situation, CDA’s business set-up service providers can assist you in getting all the business set-up requirements sorted out without making you anxious about anything.

The team at CDA can get your restaurant business licensing process swiftly done by maintaining all the documents required. Our team of experts is well aware of the demography of Dubai; hence, we can assist you in selecting the best location and getting your business off to a brilliant start. To know more about our services, contact our team now.

Click here to learn more about our licensing procedures.