Food has always been a profitable business industry and taking into considerations; the Middle East is the center not only for the trading of commodities; but also for delicious delights from all over the world with genuine cultural cuisines. Dubai is popular for tourism and one of the main reasons why people travel to Dubai; is to get familiar the world’s finest cuisines and develop their taste along with enriched traveling experience. According to the study from Euro monitor International, by the year 2019; it is expected that additional 19,000 outlets will come in with the Food and Beverage Sector in Dubai.
Opening a Restaurant in sharjah or in Dubai? Then in view of the numerical figures in the Middle East; the UAE without any doubt is one of the biggest and fastest rising economies. The restaurant sector mainly in Dubai, over the past few years, has seen huge growth.
With people ready to try newer cuisines from different geographical areas; the focus on businessmen all around the world are eyeing towards opening a restaurant in Dubai. As we recognize one of the most relevant factors of traveling to an overseas country; is to treat in their Local and International available cuisines; there is a massive scope of the restaurant business in Dubai.
Why starting a restaurant in Dubai is difficult and how you can succeed?
- Selection of location – Some of the important factors that may classify the score of your restaurant; will be accessibility, parking space, profitable and resident properties nearby.
- High rent – As per the particulars and studies we suggest that your restaurant rent should not go beyond 10% of you expected income annually.
- Unidentified Standard Operating Systems (SOP’s) – Not having accurate SOP’s may cause in bad services and reviews.
- Picking of Menu and Restaurant Concept – The restaurant should not be based on your own taste and personal likes, generally; the restaurant is to serve customers that what accurately will boom the restaurant in customers view.
- Restaurant Staff – The concept of restaurant runs on food and service, the staff is the ambassadors of your business.
How to get restaurant license in Dubai
According to the authority in Dubai, the minimum size of restaurant should be of 750 sq.ft. A register Interior Fit out Contractors will take over the project; and follow the checklist from the DM and will get the approvals from Dubai Municipality. The initial approval can be taken from DED; however the final trade license in Dubai to open the gates of the restaurant will depend on Fit out Contractor.
To make it simple that to understand the flow and the process of starting a restaurant in Dubai; here is a brief summary of the process;
Step 1. Get your Business Plan and Feasibility developed by a professional.
Step 2. Take on the services of a Consultant who will make easy; and take care of all kinds of approvals from the Dubai Economic Department
Step 3. Identify and hire an approved Interior Fit out Contractor and complete project.
Step4. After proper inspection and all others are ok you are officially allowed to open doors.
Restaurant license cost in DUBAI
We have some existing clients who are successfully running restaurants, cafeteria, and mini restaurant shops; it will not be tough for us to tell you restaurant license cost in Dubai. But you need to know that the restaurant license cost in Dubai; totally depend on the licensing authorities and lease value; the average charges to set up a decent independent restaurant ranges from AED 100,000. The basic requirements for leasing out space as per the authority are minimum 750 Sq/m.
A legal procedure, in order to start a restaurant business in Dubai does not take more than a week; opening a restaurant in Dubai May lead in very good investment opportunity for businessmen around the globe.
Also note down that the type of a restaurant license in Dubai as per the DED are as following:
- Restaurant and Coffee Shops
- Floating Restaurant
- Restaurant and Mini Store
- Multi Restaurants Center
Expert Tips for how to get restaurant license in Dubai
Unlike any commercial setup, opening a restaurant in Dubai; also requires successful business planning. However the question “Which location should I open my Restaurant in?” plays a very important role in the success ratio.
According to our study and existing clientele; I also have made an assessment to highlights the Do’s and the Don’ts for the reference.
The Location When starting a restaurant in Dubai
Dubai is an emirate which is known home to more than 200 nationalities with distinctive cultures. What site or place is suitable for opening a restaurant in Dubai; depends on what target group are you trying to serve.
Dubai has a variety of zones which have an impact on the target viewers. There are Business zones such as Media City, Education City or Business Bay; where the majority of the Western Expats will be found. Tourist areas such as Jumeirah Road and Dubai Marina will have a mix of Western and Asian people. From our experience, the Hot spots for opening a restaurant in Dubai are Business Bay; Jumeirah Beach Road, and JBR Dubai Marina; but yet again as said it entirely depends on what cuisine you will be serving; what is the niche and demand of market.
What are the Dos While starting a restaurant in Dubai?
- To begin the first step with proper business feasibility; and planning to have a clear understanding of your market and future forecast on ROIs.
- Do create a pricing policy with a competitive analysis in order to bear out the cost and expenses.
- Do organize a detailed marketing plan and use suitable online platforms which result in more than average percentage of sales.
- You need to Do SWOT analysis with help of experts about competition around; and what strategies could be used.
- Do take essential approval and NOC from relevant authorities.
What are the Don’ts???
- Don’t try of opening a restaurant in Dubai, or in fact anywhere, if you don’t have relevant experience. It is best to take guidance or hire relevant and experienced professionals.
- Be Realistic-Don’t overcharge your offerings on the menu
- Don’t develop a menu that you personally desire, go with the taste of customers.
FOOD CODE for Restaurant Business in Dubai
Food Control Department of Dubai Municipality ensures each and every restaurant in starts have to follow FOOD CODE; in order to obtain the final trade license; initially from the start of food production to end of food consumption.
You have to to get the food safety department approval in Dubai; before getting the final trade license from Dubai Economic Department for all kind of restaurant or cafeteria license in Dubai. You will require the below mention documents to get the Food Clearance from DM.
- Trade license copy or primary approval from authority that issues trade license
- Interior design layout of the premises by registered DM Interior Designer; this is basically a blueprint of your restaurant.
We advise to look for assistant of Business Consultant; who will help and assist you till the end of all formalities and approvals. There are also permits, requires for restaurant business which I can assist you from start to end process.
How to get restaurant license in Dubai
Looking at the options it may look that opening a Restaurant in Dubai Free zone; will charge you less as compare to setting up in Dubai main land. However the strict rules and regulations in the Free Zone make it difficult to go with this option. So the most effective option for restaurant formation is the main land option.
As per the authorize structure as well as commercial law in the United Arab Emirates; main land option allow a foreign investor to hold only 49% of share; while 51% of the share will be with local sponsor. I suggest opting for trusted Sponsor rather than an ordinary Local sponsor which will eliminate the risk; we will make sure our sponsor will give you full control over operations, profits, and management. We as a company provide local sponsor with full sign MOU.
As you have almost certainly guess by now; getting a license as well as approvals is a crucial part of the process. It is important to perform each step on time; so that you can start opening the doors to your restaurant or cafeteria as soon as possible.
Our consultants have skill and also experience in setting various restaurants; they also have knowledge of the authority and know how to get restaurant license in Dubai.
In my opinion, I highly recommend to get help from business consultant like us; so if you think that you need to get a right kick start; into getting your café restaurant or food business in Dubai; then I would love inviting you for coffee and giving you extra free tips on doing it just right.