Restaurant Business Setup in Dubai: A how-to Guide

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

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

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

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

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

Restaurant Business Setup in Dubai: 10 Steps to Follow

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

1.      Restaurant License in Dubai Requirements

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

License to trade

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

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

License for Foodservice

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

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

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

2.      A Location must be Selected

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

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

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

3.      Creating a Business Plan

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

4.      Restaurant Opening Costs in Dubai

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

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

5.      Dubai Restaurant Layout Requirements

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

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

6.      The Menu’s Design

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

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

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

7.      Measures to Keep Food Safe

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

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

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

8.      Recruiting Qualified Personnel

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

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

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

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

9.      Required Documents for Opening a Restaurant in Dubai

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

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

Other Permits Include:

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

10.  Additional Permits

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

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

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

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

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

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