The UAE has a diverse population of over 11 million Emirati nationals and foreign residents. Especially, the growing tourism appeal of Dubai is creating the demand for the professional cooking and serving. Therefore, you can use your hoteling and culinary management experience to start a restaurant business in Dubai now.
With a passion for cooking, you can become the next master chef in the UAE. Particularly, Dubai indeed requires the food loving entrepreneurial minds to foster new opportunities. You can choose between casual or fine dining options, depending on your skills, budget, and target audience.
Going through the licensing requirements of a new company setup in the UAE can get a little intimidating. This comprehensive guide will enlighten the investors with the knowledge to enter the food-service industry. Keep reading as with this complete information, you can convert your restaurant dream into a reality in Dubai.
Process to register a restaurant business in Dubai
For venturing into the food-service segment, you have to register your restaurant business in Dubai. It needs vigilant planning and adherence to the regulatory requirements. Following are the key steps of this procedure for entrepreneurs having a craze for culinary investment.
- Choose legal structure of business
- Decide business name
- Get an NOC from Dubai Municipality
- Rent space for restaurant
- Prepare legal documentation
- Valid passports of the owner
- Copies of the visa of all shareholders
- Business plan for the restaurant
- MoA detailing the partnership information
- Ejari/lease agreement of the restaurant space
- Floor plan of the restaurant premises
- Health certificates of food products handlers
- Submit the licensing application to the DED
- Acquire additional regulatory approvals
- Obtain the trade license from the DED
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Considerations while opening a restaurant in Dubai
Here are a few things that you need to know while incorporating a restaurant business in Dubai.
- Formulating clear business plan
- Keeping patience for perseverance
- Bringing the customers
- Securing apt location matters
- Crafting perfect menu
- Staffing wisely for restaurant
- Creating ambiance that guests want to go back to
Now, we briefly discuss these points.
Formulating clear business plan
First and foremost, it is vital that you devise a clear business plan. Because a business plan outlines the restaurant’s concept, and details how are you planning on transforming into a profitable business. As you study and research information for your business plan, you realize that many elements that need meticulous consideration.
For example, financing, location, menu, staffing, and theme of the restaurant to give your business the best chance for success. Regarding the theme of the restaurant, it should be a simple enough, that can be easily understood by the masses. Plus, your concept is pivotal in determining the decor, menu, and the overall look and feel of the restaurant.
Furthermore, doing extensive market research is essential. Learn what financial performance to expect and plan your business plan accordingly. Remember, a business plan is a blueprint for executing your entrepreneurial idea to bring it into reality.
Keeping patience for perseverance
Remember that owning a restaurant is arduous than a full-time job. It means that you must prepare yourself for working most of the time, particularly in the beginning. Restaurant owners need to work round the clock, including during the holidays and on the weekends.
Especially in Dubai, people are looking for a new place to eat out daily. So, you have to capitalize on this opportunity as much as possible by keeping your restaurant open on most days. For that matter, restaurants in Dubai or anywhere else are not a get-rich-quick-scheme.
Rather, they require a great amount of patience, perseverance, and resilience to start generating revenue. Therefore, you must have a sound support system in place. So that you can rely on it, when you dishearten or face demoralization during the crunch situations.
Bringing the customers
The first rule of business is that never, ever assume anything, do your research , get the facts, and then plan accordingly. Likewise, don’t ever expect that the customers will swarm your restaurant once it opens its door. Be prepared for rejection, and having your self-esteem shattered repeatedly.
Opening a restaurant in Dubai is no small feat. Thus, do your research and stick to your guns. Eventually, you can penetrate the market and will successfully make a name for yourself.
Securing apt location matters
An excellent location for a restaurant is a vital contributing factor to the probable success of the establishment. Go for a location where your restaurant is easily accessible and have a large customer footfall. A good rule of thumb to remember while choosing a place for your restaurant is to identify your closest competitors in that area.
Just study their performance to gauge how much potential for growth is possible. Additional factors to consider are visibility, size, cost, and traffic — both pedestrian and by car. When you finalize a place, add the cost of renovations in the contract, that you draw up with your landlord.
Crafting perfect menu
You must create an enticing menu that perfectly aligns with your restaurant concept. Know that making a restaurant menu is more than just hastily slapping together a list of dishes with fancy descriptions. The menu must showcase your restaurant’s concept to target your customers.
Channel your creative energy into crafting an enticing menu that attracts customers to your restaurant in Dubai. Also, it is crucial to understand food costs, and the ways to minimize the expenses, to maximize your profits. Do not attempt any weird combinations in the hopes that it just works.
Staffing wisely for restaurant
Hiring the right chefs and other staff is extremely important for a new restaurant in the UAE. The recruitment of a good head chef is pivotal for the success of your restaurant. However, right selection of junior cooks and waiters/stewards has also much significance.
Therefore, you must consider carefully, weighing all your options, before making any decisions. Moreover, do not forget to train your culinary staff in Dubai. So that they are on top of their game and provide the ultimate service to your customers.
Creating ambiance that guests want to go back to
Develop an ambiance for the restaurant, so that customers want to visit again. Spend adequately to create a fantastic guest experience at your restaurant in Dubai. The money spent building the perfect ambiance is paramount in adding value for the users. Bear in mind, happy clients will spread the necessary buzz about your upcoming restaurant.
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Types of activities for restaurants in Dubai
You can choose from these types of activities for your restaurant in Dubai.
- Restaurant and coffee shop
- Floating/moving restaurant
- Mini store and restaurant
- Multi restaurants center
Kinds of restaurant businesses in Dubai
The United Arab Emirates fosters a multi-dimensional culinary experience. Foreign investors have various options available to get high rewards. These are some kinds of the restaurant businesses in Dubai.
- Full-service restaurants
- Fine dining restaurants
- Casual dining restaurants
- Fast casual restaurants
- Ethnic restaurants
- Theme restaurants
Let’s have a brief overview of these classifications of the restaurant businesses in Dubai, UAE soon.
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Top areas for establishing restaurants in Dubai
Picking a right location is a major factor in the success of your business. People in commercial centers, markets, industrial areas, and residential blocks have a great demand for eateries. You can look into the following areas with high customer footfalls for beginning a restaurant business in Dubai.
- Downtown Dubai
- Jumeirah
- Dubai Marina
- Al Quoz
- Business Bay
Benefits of setting up restaurants in Dubai
These are some of the advantages of launching a restaurant setup in Dubai, UAE.
- The UAE has a diverse food culture that caters to the taste buds of everyone.
- Its diverse cuisine ranges from traditional Arabic dishes to international delicacies.
- Dubai offers numerous opportunities for Emirati and foreign food entrepreneurs.
- It allows expatriate investors to create unique concepts and stand out in a competitive food market.
- Restaurants in Dubai even serve the tourists from the Middle East and North Africa (MENA) region.
- Dubai with a diverse palette, a vibrant culture, and different tastes and cuisines renders a top restaurant business opportunity.
- A proper business plan, adequate funding sources, and creating strategy to tackle challenges make your Dubai restaurant successful.
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Conclusion
As with any business, venturing into the UAE’s food industry is an overwhelming task that requires significant heavy lifting. Especially, it requires an immense attention to detail to establish a restaurant business in Dubai. Also, you have to come up with a menu that showcases your uniqueness and individuality to employing efficient work staff.
All of these, when undergo execution with finesse, result in the success of the eatery. Nevertheless, the idea of owning and running a restaurant is the dream of every foodie and chef. Both food lovers and chefs with knack for entrepreneurship can exhibit their culinary prowess in the UAE.
Dubai offers lucrative opportunities for restaurant businesses, but adhering to legal rules and regulations is crucial. KWS Middle East simplifies the process by offering comprehensive services for seamless registration and approvals. We aim to provide a hassle-free and compliant business setup in Dubai, ensuring a smooth transition into the lucrative F&B industry. Contact us anytime for setting up a hassle-free and successful business venture.
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FAQs about starting a restaurant business in Dubai
These are the answers to common questions on forming restaurant business in Dubai.
The cost of a trade license for a restaurant in Dubai is around AED 15,000. Fee for additional permits like food safety and seating/takeaway are about AED 10,000. NOC from Dubai Municipality and health permit from DHA take the starting licensing expense from AED 25,000 to 35,000.
Yes, the restaurant and food-service industry in Dubai is highly rewarding. With this venture, you get to serve the foodies from across the UAE. On top, frequent travelers from the MENA region can visit your restaurant to fulfill their fine-dining needs.
Normally, the minimum cost of a restaurant begins from AED 150,000. However, the total expenditure depends on the size, scale, and location of the restaurant. Also, the factors like the concept, offerings, seating capacity, and food-service competition decide the restaurant cost.
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