restaurant business plan dubai

Restaurant Business Plan for Dubai [Sample Template]

By: Author Tony Martins Ajaero

Home » Asia » United Arab Emirates » Start Business in Dubai

Do you want to start a restaurant business in Dubai ? If YES, here is a complete sample restaurant business plan template and free feasibility report for Dubai.

Dubai is one of the topmost destinations for business people and investors in the whole of the Middle East. The government policy and state-of-the-art infrastructures support the growth of small businesses as well as large corporations.

Business opportunities in Dubai are not just open to the citizens of United Arab Emirate, but also to foreign investors as well. As a matter of fact, the foreign investors are wooed into Dubai because the presence of foreign business is a major boost to the economy of the country.

There are many free trade zones in Dubai and that is why commerce and trade is at its peak. People come from far and wide to shop in Dubai because goods are sometimes cheaper there. The bottom line if that when people visit Dubai, they tend to eat in restaurants hence starting a restaurant business in Dubai can prove to be quite profitable.

If you intend starting your restaurant business in Dubai, then you must ensure that you play by the books or else you will lose your investment. Below is a sample restaurant business plan template for Dubai that can help you to successfully write your own.

A Sample Restaurant Business Plan Template for Dubai

1. industry overview.

Dubai restaurant industry is a thriving industry because per capita food spend in the UAE is among the highest in the world, at $3,159 in 2015, 32 percent higher than in the US (excluding alcohol), and about the same as the average person’s spend in Kuwait and Qatar combined.

As spend on food eaten in restaurant moves in line with the economy and population, a portion of the high value spend on food by Emiratis is explained by their high net worth — and by the fact that visiting malls and dining out are the primary sources of entertainment for many in the region.

Although at a population of 10.1 million, the UAE population is small, but with increase in tourists visit, there is always a boom in the restaurant industry.

The distribution of restaurants and people, however, is not even, with a heavy concentration of food service establishments in Dubai causing a high saturation rate in that market. Dubai has close to 260 people per restaurant (compared to 320 people per restaurant in the US).

In spite of the economic challenges brought on by sagging oil prices, many UAE restaurant operators continue to thrive. Consumer foodservice industry is close to $15 billion — and one with an attractive long-term outlook.

Despite the fact that there loads of big, medium and small-scale players in the restaurant industry, there’s still a lot of room for growth among UAE restaurant chains (and those looking to expand into new markets). In the UAE, the share of spend on food away from home (i.e. restaurants) is lower than that of other developed countries.

The US, for instance, is near to a 50 percent-50 percent split between restaurants and groceries. The breakdown in the UAE, meanwhile, is 46.7 percent restaurants, 53.3 percent groceries — but that split is set to weigh heavier for restaurants, and at an accelerated pace, over time.

There’s also potential for the growth of certain cuisines and segments. Chained foodservice, for instance, is under-developed:

While in the US and Canada, the share of chained foodservice has remained stable over the last few years (at around 54 percent of the restaurant industry). In countries like the UAE and KSA, the market potential for the expansion of chains ranges from $4.3 billion to $5.1 billion annually.

In the United Arab Emirates, the full-service restaurants are fragmented in terms of cuisines, formats, and price point, with a diversity of casual and fine dining options. Chained full-service restaurant sales are growing 1.8 times as fast as independents. The share of chains is set to grow to 19 percent in 2023 (from 16 percent in 2016).

It might interest you to know that UAE Restaurants industry has minimal barriers to entry, with minimal startup capital and no specific licensing requirements.

On the other hand, the high level of competition and market saturation in a declining industry can prove challenging to aspiring entrepreneurs who want to start their own restaurants in Dubai. Most players in the restaurant line of business in Dubai are small – to medium – size establishments that cater to the local and international community.

2. Executive Summary

Al Amirah® Restaurant, Inc. is a registered restaurant business that will be located at Dubai Marina – Dubai. We have been able to lease a facility along a major road that is big enough to fit into the kind of classy and intercontinental restaurant that we intend launching and the facility is located in corner – piece property between the Palm Jumeirah and Dubai Marina.

Al Amirah® Restaurant, Inc. will be involved in full-service dining of local and intercontinental delicacies, beverage sales and take-out meals.

We know that that there are several large and small restaurants all around Dubai Marina, which is why we spent time and resources to conduct our feasibility studies and market survey so as to offer much more than our competitors will be offering. We have self – service options for our customers, and our outlet has various payment options.

We are aware of the trend in the restaurant/fast food industry in UAE and we are not only going to operate a system where our customers would have to come to our restaurant to make a purchase, but we will also operate an online service so our customers can place orders online.

Al Amirah® Restaurant, Inc. will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable international business practices wherever possible.

We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.

Our plan is to position our restaurant to become one of the leading brands in the industry in the whole of Dubai, and also to be amongst the top 5 restaurant chains in the United Arab Emirates within the first 10 years of operation.

This might look too tall a dream but we are optimistic that this will surely be realized because we have done our research and feasibility studies and we are confident that Dubai Marina – Dubai is the right place to launch our restaurant.

Al Amirah® Restaurant, Inc. is a family business that is owned by Mrs. Al Amirah and her immediate family members. Mrs. Al Amirah is an intercontinental chef cum food maven, she has a B.Sc. in Hotel Administration, with over 10 years experience in the restaurant and fast food industry.

Although the business is launching out with just one outlet in Dubai Marina – Dubai, but there is a plan to open other outlets all around Dubai Marina and in other key cities in the United Arab Emirate.

3. Our Products and Services

Al Amirah® Restaurant, Inc. is in the Restaurants industry to make profits and we will go all the way to make available well – prepared local and intercontinental delicacies for our clients. We are prepared to make profits from the industry and we will do all that is permitted by the law in the United Arab Emirates to achieve our business goals, aim and ambition.

4. Our Mission and Vision Statement

• Our vision is to become the leading restaurant in Dubai Marina – Dubai and to establish a one stop restaurant in other cities in the United Arab Emirates.
• Our mission is to establish a Restaurant business that will make available varieties of well – prepared Local and intercontinental delicacies at affordable prices.

Our Business Structure

Our intention of starting a restaurant business is to build a standard restaurant in Dubai Marina – Dubai. Although our restaurant might not be as big as that of leading players in the industry, but will ensure that we put the right structures in place that will support the kind of growth that we have in mind.

We will ensure that we hire people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all our stakeholders. As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more.

In view of that, we have decided to hire qualified and competent hands to occupy the following positions;

• Chief Executive Officer (Owner)
• Restaurant Manager
• Human Resources and Admin Manager

Sales and Marketing Manager

Information Technologist

• Accountants / Cashiers
• Waiters / Waitress
• Van Drivers / Deliverers

5. Job Roles and Responsibilities

Chief Executive Officer – CEO (Owner):

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
• Accountable for fixing prices and signing business deals
• Responsible for providing direction for the business
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization

Admin and HR Manager

• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Defines job positions for recruitment, and managing interviewing process
• Carries out induction of new team members
• Accountable for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Oversees the smooth running of the daily office activities.

Restaurant Manager:

• Responsible for managing the daily activities in the restaurant
• Ensures that the restaurant facility is in tip top shape and conducive enough to welcome customers
• Interfaces with third – party providers (vendors)
• Reports to the Chief Executive Officer
• Attends to Customers complains and enquiries
• Prepares budget and reports for the organization
• Any other duty as assigned by the CEO
• Responsible for preparing different Local and intercontinental delicacies as requested by our clients
• Makes lists and budget for cooking supplies
• Oversee the entire cooking process
• Responsible for training new cooks
• Makes sure that quality is maintained at all times
• Responsible for purchasing food ingredients for the organization
• Ensures that the kitchen is kept clean at all times
• Ensures that all kitchen wares are kept at their proper position after use.
• Any other duty as assigned by the Restaurant Manager.
• Manages external research and coordinate all the internal sources of information to retains the organizations’ best customers and attract new ones
• Models demographic information and analyze the volumes of transactional data generated by customer purchases
• Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
• Identifies development opportunities; follows up on development leads and contacts
• Documents all customer contact and information
• Represents the company in strategic meetings
• Helps increase sales and growth for the company
• Manages the organization’s website
• Handles ecommerce aspect of the business
• Responsible for installing and maintenance of computer software and hardware for the organization
• Manages logistics and supply chain software, Web servers, e-commerce software and POS (point of sale) systems
• Manages the organization’s CCTV
• Handles any other technological and IT related duties.

Accountant/Cashier:

• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensuring compliance with taxation legislation
• Handles all financial transactions for the organization
• Serves as internal auditor for the organization

Waiters/Waitress:

• Promptly attends to customers in a friendly and professional manner
• Ensures that un-occupied tables are always set and ready for customers
• Handles any other duty as assigned by the Restaurant manager

Van Drivers:

• Delivers customer’s orders promptly
• Deliver correspondence for the restaurant
• Runs errand for the organization
• Any other duty as assigned by the manager
• Responsible for cleaning the restaurant facility at all times
• Ensures that toiletries and supplies don’t run out of stock
• Handles any other duty as assigned by the restaurant manager.

6. SWOT Analysis

We are quite aware that there are several restaurants in Dubai Marina – Dubai and even in the same location where we intend locating ours, which is why we are following the due process of establishing a business. We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be equipped to confront our threats.

Al Amirah® Restaurant, Inc. employed the services of an expert HR and Business Analyst with bias in the restaurant business to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives. Here is the summary of the SWOT analysis that was conducted for Al Amirah® Restaurant, Inc.;

The location of our business, the business model we will be operating on, varieties of payment options, wide varieties of local and intercontinental delicacies, our excellent customer service culture, etc. will definitely count as a strong strength for Al Amirah® Restaurant, Inc. Also, we have a lot of professional intercontinental chefs under our pay role and a management team that has what it takes to grow a new business to profitability within record time.

For a business like ours, a major weakness that we will be dealing with is the normal teething stages that a new business goes through.

• Opportunities:

Dubai a city with a huge number of tourists, and lovers of local and intercontinental delicacies provide us with vast opportunities. Restaurant operators’ top line is significantly impacted by tourism (both in terms of number of tourists and their composition) and we are positioned to leverage on this.

Aside from high staff attrition and labor cost, steady increase in rent is one major threat that we are likely going to face. The average cost of opening a small, independent restaurant in Dubai ranges from AED 500,000 to AED 1.25 million depending on the size and format.

Even these figures are based on restaurant space ranging from 500 sqm to 1,200 sqm only. Moreover, 78 percent of money outflow of the restaurant business comprises of capital costs, rent and working capital. Thus, high rentals are the biggest and the most upfront challenge that we will face in the restaurant industry in Dubai.

7. MARKET ANALYSIS

• Market Trends

A recent trend in the restaurant industry in Dubai shows that the several new malls, hotels, airports and neighborhood expansions as well as theme parks and sports stadiums all offer local restaurant operators the opportunity to enter new markets or explore franchise opportunities.

Despite the fact that competition remains fierce all across Dubai, restaurateurs looking to expand in this market should take steps to develop their brands with strong product differentiation and invest in technologies that keep costs low and attract new customers.

While continued domestic investments are likely to cushion the UAE restaurant industry from any major shifts in oil prices or the geopolitical landscape, the market will nevertheless remain challenging for operators in the near future.

To withstand this oversaturation, restaurant operators are advised to focus their efforts on building a strong brand and identifying their unique position. Strategic advertisements, both physical and digital, can help attract new customers and that is the current trend in Dubai.

8. Our Target Market

We are aware of the fast-growing patronage of local and intercontinental delicacies in the United Arab Emirates and this trend is not going to abate anytime soon and loads of entrepreneurs are leveraging on this.

In view of that, we have positioned our restaurants to service the residence of Dubai Marina – Dubai and every other location where our chains of restaurants will be located in key cities all over the United Arab Emirates. We have conducted our market research and we have ideas of what our target market would be expecting from us. We are in business to retail our local and intercontinental delicacies to the following groups of people;

• Corporate Organizations
• Corporate Executives
• Business People
• Sports Men and Women

Our competitive advantage

Dubai and the United Arab Emirates in general is not just one of the most lucrative markets for the restaurant industry in the world; it is also one of the most competitive markets. The bright side to this is that since the market is saturating, service providers are coming up with more sophisticated ideas, different trends are being born and consumers have no shortage of choice.

The unwelcoming side is that the restaurant industry in Dubai, Abu Dhabi and the rest of the UAE is also confronted with challenges, now more than ever before.

Our ability to control stock on hand and come up with unique meals at short – notice, our ability to quickly adopt new technology and of course our easy access to multi – skilled and flexible workforce are part of the competitive advantage that we will be bringing to the table.

Al Amirah® Restaurant, Inc. is launching a classy intercontinental restaurant that will indeed become the preferred choice of residents and visitors to Dubai Marina. Our restaurant is located in a corner piece property on a busy road directly opposite one of the largest shopping malls in Dubai Marina. We have enough parking space that can accommodate over 25 cars per time.

One thing is certain, we will ensure that we have wide varieties of local and intercontinental delicacies, beverages and coffee et al available in our restaurant at all times. Our excellent customer service culture, online store, various payment options and highly secured facility will serve as a competitive advantage for us.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the restaurant/fast food industry in Dubai, meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.

9. SALES AND MARKETING STRATEG

• Sources of Income

Al Amirah® Restaurant, Inc. is in business to retail a wide variety of local and intercontinental delicacies, coffee, non-alcoholic drink and water to the residence and visitors of Dubai Marina-Dubai and that is exactly our sources of incomes.

10. Sales Forecast

One thing is certain when it comes to restaurants, if your restaurant is centrally positioned, you will always attract customers cum sales and that will sure translate to increase in revenue generation for the business.

We are well-positioned to take on the available market in Dubai Marina – Dubai and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six month of operation and grow the business and our clientele base.

We have been able to examine the Restaurants industry, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to startups in Dubai Marina.

• First Fiscal Year: 920,000 AED
• Second Fiscal Year:  1.8 Million AED
• Third Fiscal Year:  3.3 Million AED

N.B : This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

Prior to choosing a location for Al Amirah® Restaurant, Inc., we conducted a thorough market survey and feasibility studies in order for us to penetrate the available market.

We hired experts who have good understanding of the restaurant industry in Dubai to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the population. In a nutshell, Al Amirah® Restaurant, Inc. will adopt the following sales and marketing approach to win customers over;

• Open our restaurant in a grand style with a party for all.
• Introduce our restaurant business by sending introductory letters alongside our brochure to corporate organizations, travel and tour companies, households and key stake holders in and around Dubai Marina
• Ensure that we make wide varieties of local and intercontinental delicacies in our restaurant at all times.
• Make use of attractive hand bills to create awareness and also to give direction to our restaurant
• Position our signage/flexi banners at strategic places around Dubai Marina – Dubai and Palm Jumeirah
• Create a loyalty plan that will enable us reward our regular customers

11. Publicity and Advertising Strategy

Regardless of the fact that our restaurant is well located, we will still go ahead to intensify publicity for the business.

Al Amirah® Restaurant, Inc. has a long – term plan of opening chains of classy restaurants in various locations all around Dubai and key cities in the United Arab Emirates which is why we will deliberately build our brand to be well accepted in Dubai Marina before venturing out.

Here are the platforms we intend leveraging on to promote and advertise Al Amirah® Restaurant, Inc.;

• Place adverts on community – based newspapers, radio and TV stations.
• Encourage the use of word of mouth publicity from our loyal customers
• Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook, Twitter, LinkedIn, Snapchat, Google+ and other platforms to promote our business.
• Ensure that our we position our banners and billboards in strategic positions all around Dubai Marina – Dubai
• Distribute our fliers and handbills in target areas in and around Dubai Marina and Palm Jumeirah
• Advertise Al Amirah® Restaurant, Inc. business in our official website and employ strategies that will help us pull traffic to the site
• Brand all our official cars and delivery vans and ensure that all our staff members wear our branded shirt or cap at regular intervals.

12. Our Pricing Strategy

Our pricing system is going to be based on what is obtainable in the restaurant industry in Dubai, we don’t intend to charge more and we don’t intend to charge less than what our competitors are charging per meal. Be that as it may, we have put plans in place to offer discounts once in a while and also to reward our loyal customers especially when they come in as a group.

We are aware that there are contracts to supply local and intercontinental meals at events organized by government, corporate organizations or international communities; we will ensure that we abide by the bidding pricing template when we bid for such contracts.

• Payment Options

The payment policy adopted by Al Amirah® Restaurant, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United Arab Emirates.

Here are the payment options that Al Amirah® Restaurant, Inc. will make available to her clients;

• Payment via bank transfer
• Payment with cash
• Payment via credit cards
• Payment via online bank transfer
• Payment via check
• Payment via mobile money transfer

In view of the above, we have chosen banking platforms that will enable our client make payment for meals and drinks purchase without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.

13. Startup Expenditure (Budget)

From our market survey and feasibility studies, we have been able to come up with a detailed budget of establishing a standard and world class Restaurant. These are the areas we are looking towards spending our startup capital on;

• The total fee for registering the business in the United Arab Emirates (Free Trade Zone) – 17,500 AED.
• Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – 15,200 AED.
• Marketing promotion expenses for the grand opening of Al Amirah® Restaurant , Inc. LLC in the amount of 14,000 AED and as well as flyer printing (2,000 flyers at 0.19 AED per copy) for the total amount of – 12,000 AED.
• The cost for hiring business consultant – 10,000 AED.
• The cost for insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – 9,600 AED.
• The cost for payment of rent for 12 months at per square feet in the total amount of 1.2 million AED
• The cost for construction of a standard Restaurant and kitchen – 500,000 AED
• Other start-up expenses including stationery ( 2,000 AED ) and phone and utility deposits ( 10,000 AED ).
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – 400,000 AED
• The cost for start-up inventory (cooking ingredients, alcoholic drinks, soft drinks, beverages, coffee and serving wares et al) – 320,000 AED
• Storage hardware (bins, rack, shelves, food case) – 16,000 AED
• The cost for counter area equipment (counter top, sink, ice machine, etc.) – 33,500 AED
• The cost for store equipment (cash register, security, ventilation, signage) – 52,300 AED
• The cost of purchase of delivery vans – 215,000 AED
• The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – 16,450 AED.
• The cost of launching a website – 2,400 AED
• The cost for our opening party – 40,000 AED
• Miscellaneous – 50,000 AED

We would need an estimate of 3.2 million AED to successfully set up our Restaurant in the United Arab Emirates.

Generating Startup Capital for Al Amirah® Restaurant, Inc.

Al Amirah® Restaurant, Inc. is a private business that is solely owned and financed by Mrs. Al Amirah and her immediate family members. They do not intend to welcome any external business partners which is why she has decided to restrict the sourcing of the startup capital to 3 major sources.

These are the areas we intend generating our startup capital;

• Generate part of the startup capital from personal savings
• Source for soft loans from family members and friends
• Apply for loan from the bank

N.B: We have been able to generate about 1.2 million AED (Personal savings 1 million AED and soft loan from family members 200,000 AED ) and we are at the final stages of obtaining a loan facility of 2 million AED from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

The survival and viability of any business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and the business structure. If all of these factors are missing from a business, then it won’t be too long before the business closes shop.

One of our major goals of starting Al Amirah® Restaurant, Inc. is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to retail our Local and intercontinental delicacies a little bit cheaper than what is obtainable in the market and we are prepared to survive on lower profit margin for a while.

Al Amirah® Restaurant, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.

We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

• Business Name Availability Check : Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Leasing of facility and remodeling the facility to fit into a standard Restaurant: In Progress
• Conducting Feasibility Studies: Completed
• Generating capital from family members: Completed
• Applications for Loan from the bank: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Printing of Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Purchase of the needed furniture, kitchen appliances, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business both online and around the community: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Opening party planning: In Progress
• Compilation of our list of products that will be available in our shop: Completed
• Establishing business relationship with vendors – suppliers of cooking ingredients, coffees, and soft drinks – In Progress.

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How to Open a Restaurant in Dubai or UAE (Updated 2023 Guide)

• April 7, 2023

Although this guide is centered on how to open a restaurant in Dubai, you can, however, apply some of the core concepts to setting up your establishment in other parts of the world.

You see, the rules and regulations on how to open a restaurant vary in terms of demographics, but the basic idea and strategies almost remain the same. In fact, take it as a double-quoted “almost” because this guide will not only help you to figure out the best way on how to open a restaurant, but you might as well learn a thing or two from it.

The question is, why are we recommending Dubai, Abu Dhabi, and other areas for opening a restaurant, and not some other fancy-schmancy place?

As it turns out, each year, Dubai sprawls with millions of tourists from all over the world. To be more precise, the tourist count is up north of 4.7 million folks according to ‘Arabian Business’ insiders. In other words, beyond the glitz and glam, Dubai is a go-to hub for people who love to take a dab into the luxuries of the modern world.

For business folks, that translates to 4.7 million opportunities to make a dime. If done correctly, you could be making a whopping percentage on your yearly revenue. That’s all the more reason to set up shop in Dubai, UAE, Abu Dhabi, and other vicinities.

However, as much as these lucrative business opportunities are waiting to be explored, there’s a sense of high cut-throat competition. Dubai, like, many other famous places aren’t cheap for customers.

There’s a specific bracket where you need to line up the shots to see how your restaurant business pans out.

Secondly, without a proper plan on how to open a restaurant in Dubai, your chances are akin to last over a few months. Top it all off with a side of looming healthcare institute policies in the aftermath of the COVID-19 pandemic, the business strategy on opening a restaurant in Dubai has to be laser-sharp and personalized to your upcoming startup.

Here’s how you should get started. Read on…

Dubai & Abu Dhabi Restaurant Startup Mistakes to Avoid

If you don’t have time to skim through the entire post, here’s what you need to know about ‘how to open a restaurant in Dubai’ on the get-go.

a.      Get Your Restaurant License In Dubai on Top Priority:

Before incepting, it is extremely important to get your restaurant license in Dubai right away!

This part is detailed later down in this post, but for reference, you should know that the food code is strictly applicable to any type of food business establishment in Dubai, Abu Dhabi, and the UAE.

If you are looking to start a food business in Dubai under the following categories, it is imperative to get the appropriate business license for it.

• Restaurants
• Food Factories
• Food Processing
• Food Catering Services
• Food Packing

All of the aforementioned niches belong to different categories of food businesses in Dubai. However, to obtain a restaurant license in Dubai, you need to get a trade license from the Department of Tourism and Commerce Marketing in Dubai , and a Food License from the Food Safety Department in Dubai.

Read our guide below to find out more details about how to get a restaurant license in Dubai and the restaurant license cost in Abu Dhabi. It’ll help you a lot.

b.      Have a Stellar Restaurant Business Plan on How to Open a Business In Dubai:

Whether you are looking to start a restaurant business in Dubai, or anywhere in the UAE, a food business plan is fundamentally essential. It elaborates on structural content, such as the location for your restaurant in Dubai, marketing expenses, remote food delivery through Dubai food ordering apps, and various other operations.

Since COVID, many food startups have had to rework their business plan to include new models that would help the business to scale. It is wise to adapt to new market trends and reshape your Dubai restaurant’s launch strategy accordingly.

c.      Your Dubai Restaurant Will Not Start Earning Profit Right Away!

Profits are good, but having the notion that your Dubai restaurant will start turning over “easy money” is a false belief.

Our best advice to start a long-lasting restaurant business in Dubai is to set aside funds for scalability purposes. Since many new food business startups are focused on investing too much in ambiance and structure and other things related to the restaurant, they have all the chips bargained for making a profit with your restaurant starting from day 1.

Aspiring restaurateurs are meticulous. Especially, for new food business owners in Dubai, the cost of doing business is pretty high. Rentals break through the roof if the establishment is set up in a posh location. Likewise, raw material cost, utility bills, and staff member payroll are some of the factors that make it harder to break even.

Start small; take baby steps, and focus on building your restaurant’s credibility in Dubai. We can guarantee that profits will eventually start rolling in.

Do You Have a Business Plan on How to Open a Restaurant in Dubai?

Like any other business, Dubai also requires a few requirements that have to be met. However, before we delve into that, the most important thing is having a business plan on how to open a restaurant.

Business plans are important because they roughly lay down the groundwork as far as how everything is supposed to go.

Besides providing an expense estimate, such plans are effective as they highlight the pros and cons of how to open a restaurant in a specific location. For instance, some places in Dubai attract relatively more customers, but the rentals are equally high. The prime hotspots for high-stake restaurant customers with an equally high percentage of walk-ins are for these locations in Dubai:

• Dubai Creek
• The Mall of Emirates
• Emirates Hills

According to ‘The Restaurant Times’ online magazine, an ideal location for a restaurant is an often ignored fact that is not accounted for when new startup owners are working on how to open a restaurant in Dubai or any other place for that matter.

Now, speaking of having a rock-solid business plan to start with, we wrote an extensive guide on How to Write a Restaurant Food Business Plan that Actually Works .

The main takeaway from that post is highlighted below:

• Identifying your name-brand restaurant’s available opportunities and weaknesses
• Competitor analysis on how to open a restaurant in Abu Dhabi and Dubai before getting started
• The big Do’s and Don’ts of startup restaurant servicing protocols
• Running and managing marketing campaigns effectively for any restaurant operating at a small level
• Creating your very first menu
• Surveying the market in terms of how other restaurants in the Middle East are operating amidst COVID-19

… so on and so forth. The above highlights are just the main focus areas that help to alleviate pain points for any potential business in Dubai, especially if it’s food-related.

However, we need to divert your attention to adapting healthcare policies in the wake of the COVID-19 pandemic situation.

That sounds like a fancy idea, and ideally, it’s pretty much the next logical move as soon as the business plan for the restaurant is created.

Quite naturally, since it’s a startup, business owners are strapped for cash. They need all the extra help to get started. That’s where angel investors come in. Speaking of that, yes, there’s a detailed guide on whether you should involve an angel investor from the get-go during a restaurant inception frenzy.

While angel investors sound like a great idea, to begin with, many potential startup business owners considering how to open a restaurant fall for the honey trap. These individuals don’t pay a high degree of attention to the actual agreement between the investor/stakeholder and the restaurant ownership party.

Here’s what you need to know about involving angel investors in your food business startup:

• Pay attention to the APR percentages in your agreement with the investor:

APR otherwise means an annual percentage rate that accounts for additional money off of profits over any fiscal period. Since angel investors expect high returns, food business owners in Dubai are often crushed by heavy payments to the stakeholder party.

The business buckles down under such strenuous agreements and both parties stand to a halt without any indication of moving forward. If you think that this was the worst-case scenario on how to open a restaurant in Dubai or Abu Dhabi by partnering up with an investor, here’s the fun part. Read on…

• Always Detail Loss Equity for Both Partners:

Investors care about how their money should be protected in case the restaurant business plan goes awry within a few months. That’s why, they tend to sneak in clauses that state down that in case of business failure, the investor gets to have all his money back without any share in the loss percentages on the business owners’ part.

In such instance, you’d have to return all the principal amount despite suffering a loss on your brand-new food restaurant business in Dubai, the Middle East, or any other part of the world.

Therefore, consult with a lawyer and have him go through the draft policies on how to start a restaurant that you either made yourself or asked someone to do it. Either way, any level of expert insight is better before signing off right away.

Food Trading License in Dubai

Here’s the fun part.

As soon as you have finalized your business plan on how to open a restaurant, it’s time to shift gears. The next step is to obtain a license from competent authorities in Dubai.

Speaking of which, there are two main categories of licenses that you need to go for. Procure them both on priority, and everything’s hunky-dory from the UAE government’s approval side. Well, at least for now, it is.

• Trade License for Setting Up ‘Shop’ in Dubai
• Food Trading License in Dubai for Restaurants

Both licenses incur a nominal fee that is mandated by the UAE government.

For a food trading license in Dubai regarding your next step on how to open a restaurant in Dubai, contact the authorities from the ‘ Department of Tourism and Commerce Marketing ’. The pre-approval application from your side clearly needs to mention the kind of restaurant you’d be founding in Dubai.

As far as cost goes, a Trade license can be obtained for anywhere between AED 40,000 to AED 30,000 . This cost also factors in the type of restaurant that you’re going to own and operate within the next few months.

Fun Fact: Greasing a few palms will help you to get a food trading license for opening a restaurant in Dubai, Abu Dhabi, or other regions relatively fast. However, you’d have to pay a small extra fee that depends on the number of palms you’d be lathering up to escalate your license approval and grant process.

Therefore, if you’re short on cash, we recommend going the usual way and wait for your approval to be sanctioned.

Main Steps to Obtaining a Trade License for Opening a Restaurant in Dubai:

• Identify the corporate activities that the restaurant is going to be engaged in. The government allows up to 10 different activities per license.
• Identify the nature of the industry your restaurant will be operating in. The main industry categories are Professional, Industrial, and Commercial.
• Outline the legal status of your restaurant enterprise business in the United Arab Emirates.
• Come up with an attractive trade name for your restaurant. Please note that it’s not important for your trade name to be as same as your brand name. You can maintain different brands under a trade name easily.
• Submit your Trade License application and get an office on lease meanwhile.
• You will be contacted for additional documents if deemed necessary.
• Fulfill the extra requirements and submit those through reference DED letter to the Department of Tourism and Commerce Marketing in Dubai.

Restaurant License in Dubai, Abu Dhabi, Middle East Etc.

As far as a restaurant license in Dubai goes during your how to open a restaurant in Dubai pre-rituals, you need to approach the ‘Food Safety Department’ for a Food License . This part comes after you have successfully obtained a Trade License because the food license granting authority will ask you to procure a Trade License and submit its copy during the approval process.

The food safety department will ask you to submit the following documents. Depending on the nature of your restaurant’s operational category, you may or may not be asked for additional documentation. As far as the general gist goes, here’s what you need to know:

• A valid copy of your Trade License. As mentioned earlier, this license has to be obtained before applying for a Food License.
• Detailed insight on the interior design and layout of your restaurant.

In other words, it’s the blueprint for your restaurant license in Dubai . If you devised a robust business plan on how to start a restaurant anywhere in the Middle East, the blueprint requirements should have been followed by now. Procure and present the blueprint before Food Licensing authorities in Dubai to help them identify:

• Entry and Exit points of your physical name-brand restaurant.
• A dedicated space where you will be processing food.
• Dedicated space for storing processed and/or raw food.
• Ventilation system and installation of other facilities in adherence to general public health guidelines.
• Dedicated space highlighting kitchen area, maintenance area (if any), equipment storage facility, etc.

That was the easy part on how to open a restaurant in Dubai. The next step is considered more of an additional requirement that may or may not be applicable to your food business establishment.

These licenses might be needed in addition to Food and Trade licenses.

• License/ Permit for Pork-based food items.

You don’t have to have a pork permit in Dubai for your restaurant if you’re looking to serve customers with Halal food only !

• Vehicle permit for delivering or transporting food-related products.
• Liquor Permit

Once again, just like the optional pork permit, a liquor permit is not entirely needed if you have decided to go with the Halal food menu for your restaurant in the Middle East.

If you require a liquor license, you can contact the authorities at Al Tamimi and Company for obtaining a liquor license in Dubai for your restaurant. There are other companies too, but Tamimi Co. happens to be a well-known entity in helping owners with such predicaments.

Blink is your #1 Online Ordering Platform for Restaurants

How to open a restaurant in Dubai with a unique concept

Speaking of uniqueness, this whole process is outlined as the potential USPs for your restaurant.

What exactly is a USP for business? In layman terms, it’s the ‘Unique Selling Point’ for your food business that goes parallel to driving the competition away.

Since USPs are a strong part of opening a restaurant in Dubai or any other part of the world, they are crucial to help you gain an upper hand. The industry is already way too competitive by now, and it doesn’t take long for new food business startups to diminish within a few months.

• Restaurant Ambiance
• Overall Servicing Protocols

The above three categories will help you to come up with your own unique style, available food choices to your customers, and how fast you are able to service them.

The most important thing in this entire debacle is the cost factor associated with all of the above scenarios. Ambiance comes with architecture that’s tied to the amount of cash you are looking to spend on how to open a restaurant in Dubai.

Likewise, servicing is related to hiring and training staff and upkeep maintenance expenses for your Dubai-based food business. Placing such lucrative servicing modules effectively isn’t that a big deal if it weren’t for a high feasibility factor to account for.

What if You Had a Simple Centralized Solution for Reducing Your Dubai Restaurant Cost to an All-Time Low?

For startups, it is not easier to figure out opening a restaurant in Dubai without overspending on all the extra things that may be deemed unnecessary in hindsight.

For instance, servicing is the kind of area that can be managed effectively without breaking the bank. And so are other aspects if you have made the initial investment in the right type of technology when considering how to open a restaurant the right way.

Blink: A Centralized Online Ordering System for Restaurants in Dubai or UAE

Stop dealing with the hassles of running your restaurant. Get everything in one place thanks to Blink’s cloud-based online ordering system that provides a branded mobile app and website for maximum exposure, along with built-in fleet management technology! With all this information at hand you’ll never have trouble keeping track or managing orders – just set it up so customers can place them through their favorite devices whenever they want from anywhere there is data service available. Grow your restaurant business with the one system that has it all! With Blink, you get a cloud-based online ordering and management platform for restaurants along with CRM tools to help manages orders efficiently.

Start your digital journey with Blink. Whether you’re an established business or in early stages of operations, we do the heavy lifting while giving YOU full control over managing and growing YOUR company! With our branded online restaurant ordering mobile app (available on Apple & Android devices), comprehensive merchant portal including payments options for both credit cards AND cashless reloads at any time – plus access to ALL orders delivered by drivers through one easy interface.

This type of agreement will help you to double down on your hard-earned pennies without leaking cash on fulfillment to commission-based order percentages.

• Robust reporting system to highlight real-time restaurant customer activities ranging from rush hour ordering times to marketing tools for maintaining a higher business presence in the Dubai restaurant industry.
• Fleet management app and rider-specific app interface with GPS tracking to effectively manage your order delivery system.
• Lightning-Fast Menu Creation system for setting up your very first food menu without having to be tech-savvy for that matter.

 … and about a bazillion other perks are waiting to be explored at Blink for Restaurant platform.

There’s Always Room for Starting a Restaurant Business in Dubai Up!

At the end of the day, despite high competition and millions of people going to old restaurants, the Gulf continues to present opportunities to new startup owners. It’s all about being patient, resilient, and developing a thick skin to withstand adversity.

Speaking of tolerance to adversity and adapting to rapid shifts in how to open a restaurant in Dubai quantum, you will be overwhelmed with complex decisions. The best way of maintaining a steadfast approach to such instances is through patience and commitment. Both of these virtues serve as a baseline model for any business that is ideally expected to last for several decades on end.

Having said that, it’s better to launch your restaurant today, instead of waiting for the perfect moment. Of course, where there are challenges, startup business owners require mentorship and an occasional nudge in the right direction. That’s why we encourage you to share your concerns in the comments section below. Alternatively, you can also write to us with your ‘how to open a restaurant business’ related queries at [email protected]

What are the key highlights of how to start a business in Dubai for first-timers?

Opening a restaurant in Dubai requires careful planning and dedication, as any small-scale business in UAE advice goes. 

The first step is to research the area and determine the target market.  Doing so will help you to decide what kind of small-scale business in UAE you are supposed to open, such as if it should serve a particular type of cuisine or offer different cuisines. 

It is also important to consider local customs, regulations, and requirements surrounding food service businesses. 

The next step is to secure financing for your venture by researching available grants, loans, or other sources of funding as a preliminary step on how to start a business in Dubai , or the UAE. 

In that order, a major consideration is securing an appropriate location for your restaurant, which means looking at zoning restrictions, size requirements, and rental costs. 

Additionally, some business plans may require additional materials such as architectural plans or health inspectors’ reports so be sure these are all ready before the next steps can start moving forward. 

The same concept applies to regulations concerning small business license costs in Dubai.

Before the opening day arrives make sure all necessary licenses are obtained from both federal and state levels , federal business tax ID numbers are secured as well as licensing requirements from the Dubai Municipality Food Control Department (FMCD). Securing this info and getting your documents in order is essential to the etiquette of small business license costs in Dubai.

These processes can take several months so proper planning ahead of time will help expedite this process when it comes time to verify documents like trade license certificates etc. 

In addition to that, as far as the small business license cost in Dubai is concerned, it requires an insurance policy to cover any potential liability associated with food handling or serving alcohol if applicable.

As rules associated with small-scale businesses in the UAE, and how to start a business in UAE go, the alcohol regulations vary across different locations within the city itself. Consulting a professional food inspector may be necessary before continuing onwards in this process.  

After all these steps have been completed, feel free to work on the menu for your restaurant alongside the pricing structure. 

Last, but not least, once everything else has been taken care of concerning creating a marketing strategy including social media platforms – make sure you have a dazzling website for your food business, so that people can continue to share your digital footprint in online communities.To further amplify your online presence, consider partnering with a  social media agency in Dubai that specializes in promoting restaurants and enhancing their digital footprint.

What is a big red flag that most people don’t contemplate on how to start a business in Dubai?

One of the biggest red flags when opening a restaurant in Dubai or a small-scale business in UAE is the cost aspect. 

Solopreneurs who are oblivious to the ins and outs of how to start a small business in Dubai aren’t fully aware of renting and purchasing space policies. 

The same goes for pricing structure. 

Dubai real estate charges for small businesses can be quite costly. 

In addition to that, there are specific regulations that must be followed to open a restaurant, including obtaining permits from the municipality and food safety certifications. These costs add up significantly and must be taken into account before entering into such an endeavor. 

Another major red flag regarding how to start a small business in Dubai is that potential restaurateurs should consider the competition. 

As Dubai has an already heavily saturated market with restaurants of many different types and styles, opening another eatery may not just prove difficult because of cost but also because of competition as well. 

Prospective owners would need to do ample research on their competitors before launching their venture to stand out among them. 

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Home > Business Setup > How to Start a Restaurant Business in Dubai

How to Start a Restaurant Business in Dubai

Nov 30, 2023 | Business Setup , UAE Company Setup

Embarking on the journey of how to start a restaurant business in Dubai presents a thrilling opportunity to enter one of the world’s most dynamic culinary landscapes. With the city’s reputation as a melting pot of cultures and flavours, a strategic approach to launching a restaurant can lead to delectable success. From researching current food trends to understanding the nuances of the local market and navigating Dubai’s legal landscape, it’s a venture that demands creativity, precision, and a well-crafted business plan .

We’ll walk you through the essential steps to conceptualise, develop, and open a restaurant in Dubai, ensuring you’re equipped to satisfy the palates of a diverse and discerning international clientele in this bustling gastronomic hub.

Table of Contents

The Dubai Restaurant Market

Researching current food trends.

Dubai has evolved into a global culinary hub, boasting a diverse food and beverage industry. The city is home to over 13,000 eateries, serving a melting pot of more than 200 nationalities. This makes it a vibrant scene for any new restaurant venture. You’ll need to understand and embrace current food trends to stand out in this competitive market. Chefs like Reif Othman , who is at the forefront of culinary innovation, emphasise the importance of creativity and wit alongside quality and consistency.

Asian cuisine, particularly Japanese and sushi, has become increasingly popular, and this trend is expected to continue. Additionally, there’s a growing emphasis on sustainability, with chefs like Andy Toh of Hakkasan focusing on locally grown and organic produce. This shift towards sustainability isn’t just a passing trend but a movement that’s becoming integral to economic development and the food industry in Dubai.

Entertainment is becoming more intertwined with dining experiences . Carlos Des Los Mozos of Addmind Hospitality has noted the increasing demand for a combination of food, drinks, interiors, and ambience. This is shaping the future of restaurant concepts. The rise of homegrown restaurants is also notable, with chef Soleman Haddad of Moonrise stating that they’re gaining traction. They resonate with the local market and adapt global trends to regional preferences.

Identifying Your Target Audience

The success of a restaurant in Dubai relies heavily on identifying and catering to the right target audience. This requires a thorough understanding of potential customers’ demographics, psychographics, and behaviours. By getting to know these factors, restaurateurs can tailor their business plans , menus, and marketing strategies to attract and retain their ideal clientele.

The target audience for a restaurant is a specific segment within the larger dining market. It’s characterised by various attributes such as age, gender, income, and personal preferences. For instance, the ambience of a restaurant should match the tastes of the target market . Additionally, the location should be convenient for where they live, work, or socialise.

Creating a mission statement that resonates with all the restaurants’ target audience is crucial. It’ll be reflected in all marketing and internal materials. The menu and services offered are the primary reasons the target market will patronise a restaurant. Therefore, it’s vital to align them with the customers’ preferences. The target market will also influence which trends the restaurant adopts and which it avoids.

Analysing Competitor Success Stories

Understanding the competition is key to establishing a niche in a city with a high density of restaurants. Dubai alone has 9,189 restaurants, making the industry extremely competitive. This includes various players such as supermarkets, cloud kitchens, and food trucks. By analysing successful competitors, restaurateurs can gain valuable insights into effective business practices, unique selling propositions, and pricing strategies.

Competitive pricing is critical and must reflect the value perceived by customers without leading to losses. Considerations such as food costs, market price fluctuations, and other operational expenses like labour and rent must be taken into account when setting menu prices. Restaurants must also manage the cost of imported ingredients, which can significantly affect pricing due to the UAE’s reliance on food imports.

Identifying a unique selling point is essential to stand out from the competition. This could be an exclusive menu item, a distinctive dining experience, or community engagement through local events and partnerships. Leveraging technology and online marketing can extend a restaurant’s reach, attracting new customers and encouraging them to visit.

Navigating Dubai’s Legal Landscape

Acquiring necessary licences and permits.

Understanding the legal prerequisites is essential to initiate a restaurant or food licence in Dubai. Compliance with the ‘Food Code’ is mandatory for ensuring food safety from the point of production to the moment it reaches the consumer, thereby upholding the industry’s high standards.

Before opening your restaurant, however, it’s imperative to have a team of trained professionals to manage your establishment according to local regulations. This is crucial for your business’s smooth operation and avoiding legal complications.

Two primary licences are required: a food licence from the Food Safety Department and a trade licence , which necessitates various documents, including a No Objection Certificate for the foodstuff establishment trade licence and a trade licence for conducting business activities. Should you decide to include alcohol in your offerings, additional licensing is required.

The process for obtaining a liquor licence is stringent, with a 30% tax imposed on alcohol sales. Additional fees are also applicable for liquor permits for importing and selling alcoholic beverages. The application for this licence involves specific procedures with the licensing authorities.

Understanding Local Food Safety Regulations

The infrastructure of your restaurant must adhere to stringent guidelines. Kitchens must occupy a significant portion of the total space. If featuring a tandoor, they should measure within certain specified dimensions. Adequate ventilation systems are required to prevent smoke accumulation, with chimneys extending beyond the height of adjacent structures.

It’s also necessary to have the food control department ensure that the interior surfaces are designed for cleanliness and safety . The establishment must include designated areas for various food preparation processes and sufficient storage for different food categories.

Regulations also dictate the installation of drainage systems, which must maintain a specified clearance from walls to prevent contamination.

Considering Partnership with a Local Sponsor

For foreign entrepreneurs, selecting the right location is crucial. While some free zones and trade zones offer full ownership without the need for a local sponsor, they confine your business to specific areas. On the mainland , where restaurants often thrive, a local sponsor who holds a majority share is required by UAE commercial law.

A local sponsor can be a service agent or a silent partner, providing valuable insights into the legal framework and facilitating networking within the country.

Securing a dependable local sponsor can be challenging, and the prospect of sharing a majority stake can be daunting. Engaging in a business setup consultancy can assist in finding a trustworthy sponsor, allowing you to maintain operational control while benefiting from their expertise.

Crafting a Business Plan

A comprehensive business plan is the backbone of any successful restaurant venture, especially in a competitive market like Dubai. It acts as a detailed blueprint, outlining every aspect of restaurant management and operations, from the initial concept to the financial projections. This plan not only helps turn your ideas into a tangible reality but also convinces potential investors of the viability of your restaurant.

Outlining Your Restaurant Concept

The first step in crafting your business plan is to define the restaurant concept. This includes the type of restaurant you envision, the service style, and the atmosphere you’re aiming to create. Whether you’re leaning towards a luxurious fine-dining establishment or a casual eatery, the concept should reflect your personal interests or experiences and resonate with the target demographic .

You’ll need to research the local market and competition to ensure your restaurant offers a unique dining experience that fills a niche in Dubai’s culinary scene. Your restaurant’s identity, shaped by the cuisine and the overall execution, is key in setting it apart from competitors. The executive summary of your business plan should encapsulate this identity, summarising the proposed concept development, cuisine selection, and the anticipated costs and returns on investment.

Creating a Financial Projection

Financial analysis is the most critical component of your business plan. It should provide a clear picture of the initial investment, ongoing operational costs, and projected revenue . This section must be meticulously detailed, offering investors a sense of security in the financial viability of your restaurant.

It’s important to consider all potential expenses, from the cost of ingredients to staff salaries and rent for your chosen location. Analysing neighbourhood demographics is crucial to ascertain whether the local population will be receptive to your restaurant’s concept and cuisine.

The design of your restaurant should also be included in the business plan, showcasing your vision for the space and how it complements the dining experience you’re aiming to provide.

Setting Short and Long-Term Goals

Establishing clear short and long-term goals is crucial for the strategic growth of your restaurant . Short-term goals typically span 12 months and include immediate steps such as launching the restaurant, building a customer base, and establishing operational efficiency. Long-term goals, on the other hand, are more strategic and may take several years to achieve.

These could involve expanding the business, diversifying the menu, or opening additional locations in Dubai. Goals should be SMART – Specific, Measurable, Attainable, Relevant, and Time-related – to ensure they’re realistic and achievable. Breaking down long-term goals into smaller, actionable steps can help maintain focus and momentum.

It’s also important to prioritise these goals to help organise resources effectively. As the market evolves, you’ll need to regularly review and update your goals to stay aligned with the changing dynamics of Dubai’s restaurant industry.

Choosing the Perfect Location

Factors to consider when picking a site.

The decision of where to establish your restaurant is pivotal and can significantly impact its success. With high-calibre establishments such as Trèsind Studio and Il Ristorante – Niko Romito setting benchmarks, your choice of location needs to be strategic.

Consideration of your intended clientele is paramount in this decision, as it directly influences the potential for profit. The ease of access to your venue, whether by public transportation or parking availability, is also a critical factor that can influence customer turnout .

Proximity to vendors can affect operational costs and the quality of your offerings. An area’s food and safety department and crime statistics can influence public perception and their likelihood to patronise your establishment. Compliance with local business regulations, including zoning and health codes, is also a non-negotiable factor that varies by location.

Ensuring that the chosen site aligns with your financial constraints is essential, balancing cost-effectiveness with the necessary attributes for a successful operation.

Renting vs. Buying Property

The choice between leasing and purchasing a space for your restaurant hinges on your financial capacity and strategic vision. Leasing may offer greater adaptability and reduced initial expenditures, which can appeal to industry newcomers. Conversely, ownership could lead to cost savings over time and provide a stable venue .

Considering shared spaces such as food courts or food truck parks may present more economic opportunities and a platform to cultivate a following with less capital required. The premises must also accommodate the requisite kitchen equipment storage facility and dimensions, adhering to the standard space allocation for patrons.

Proximity to Suppliers and Traffic Flow

Establishing a location near your suppliers can streamline operations and minimise expenses, a critical consideration in Dubai’s competitive landscape. Forging partnerships with local vendors can ensure a steady stream of fresh products, a cornerstone for many of Dubai’s successful dining spots.

Understanding the patterns of pedestrian and vehicular flow is essential for selecting a location. High footfall areas can enhance visibility and naturally attract patrons, while congested zones may deter potential customers. Analysing these patterns can inform optimal space utilisation and enhance the patron experience.

Employing technologies for monitoring and analysing traffic data can provide insights into customer behaviours and preferences. These tools can assist in determining the most advantageous positioning for your restaurant and optimising its layout to accommodate customer flow efficiently.

Launching Your Restaurant

Hiring skilled staff and training.

The hospitality sector in the UAE is renowned for its abundant job opportunities, ranking third worldwide. Building a dedicated team is crucial for a restaurant’s success, particularly in a market known for its high staff turnover. Careful evaluation of staffing requirements is necessary, involving department heads to ensure alignment with both budget and operational needs.

Diverse recruitment channels, including social media, job portals, and hospitality schools, can attract a broad range of applicants. The selection process is vital to find individuals whose ambitions are in sync with the restaurant’s direction. A transparent hiring approach can lead to a more committed workforce. Introducing a cloud-based POS system can aid in managing staff performance and establishing a reward system to incentivise excellence.

Marketing and Promotion Strategies

With a significant number of restaurant transactions in the UAE occurring online , it’s imperative for establishments to have a presence on food apps, which have seen a steady increase in delivery services. A cloud-based POS system can optimise order management and enhance customer satisfaction by streamlining service.

Innovative marketing efforts should utilise the latest technologies and tap into prevailing health trends to attract a diverse clientele. Introducing unique offerings and creating a distinctive environment can also contribute to a restaurant’s popularity. Engaging social media platforms, such as Instagram, with shareable content can help in creating viral moments that attract customers.

Planning a Memorable Grand Opening

The initial launch can be instrumental in shaping a restaurant’s trajectory. A soft opening allows for operational fine-tuning, while the subsequent grand opening should be an event that generates buzz and excitement.

Engaging local influencers and media can amplify the restaurant’s presence. Collaborating with community organisations can strengthen local connections and enhance the establishment’s image . Offering incentives and leveraging social media for promotions can increase attendance and the restaurant owners’ visibility.

Allocating resources wisely for the grand opening, including marketing, food, and entertainment, is essential for a successful launch. The aim is to leave a strong impression that celebrates the opening and sets the stage for long-term success.

Ready to Make Your Mark?

Embarking on your restaurant journey in Dubai’s bustling culinary landscape requires gusto and discernment. From pinpointing the right trends to tapping into the diverse tastes of a global audience, success lies in the detail.

But remember, the city’s towering skyline started with a blueprint — your meticulous business plan is no different. As Dubai continues to unfold new pages in its gastronomic story, it’s prime time to etch your signature dish onto this vast menu of opportunities.

With your finger on the pulse of legal nuances, a perfect locale, and a grand opening strategy set to dazzle, you are now equipped to turn the emirate’s diners into your loyal patrons. Unleash your culinary vision; Dubai is waiting to savour your flavour. Bon appétit and best of luck on your exciting new venture!

How much does it cost to open a restaurant in Dubai?

• Opening a restaurant in Dubai requires significant financial resources. The costs vary greatly depending on several factors but include fixed startup costs like fit-out contractor fees (flooring, AC, signage, wall modifications), kitchen equipment, furniture, fixtures, equipment, and coffee, juice, bar, and buffet equipment. Operational startup costs include licences and government approvals, rent and occupancy costs, employee registration and accommodation costs, salaries, initial inventory budget, and advertising and marketing budget. An estimated budget for opening a restaurant in Dubai is around AED 790,000-800,000​​​​​​​​.

How can I start a small food business in Dubai?

• Deciding on the business activities and company structure (LLC, sole proprietorship, etc.).
• Reserving a trade name that complies with regulations.
• Registering the company with the relevant authority.
• Obtaining the necessary licences and additional business permissions.
• Creating an attractive and user-friendly website.
• Choosing the right platform for customer engagement.
• Planning logistics for food storage and delivery.
• Implementing effective digital e-commerce marketing​​​​​​​​​​​​​​.

Do I need a licence to sell food in Dubai?

• Yes, obtaining a food licence is mandatory for anyone looking to start a food business in Dubai. This involves registering the company and then applying for a food licence from the Dubai Municipality. The application requires documents such as a trade licence, food safety plan, and health card. The food business must also have a genuine trade licence from the government authorities before establishment​​​​​​​​.

Do I need a sponsor to open a restaurant in Dubai?

• The need for a local sponsor in Dubai depends on the location of your restaurant. Suppose you choose to open your restaurant in the mainland area. In that case, you will need a local sponsor or Local Service Agent (LSA) who is a UAE national. This sponsor represents your company in dealings with the government, and you must allocate 51% of your company to them. However, suppose you opt to open your restaurant in a free zone. In that case, you can own 100% of the company without requiring a local sponsor​​​​​​.

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Restaurant Business Setup Guide in Dubai, UAE

Dubai, a global business hub with over 200 nationalities, offers ideal conditions for launching a restaurant in the UAE. The international foodservice market, valued at USD 3tn, remains robust, with the UAE's restaurant sector estimated at USD 3.3bn. Dubai residents dine out approximately 6.75 times weekly, making it a prime market for restaurant entrepreneurs. If you're considering starting a restaurant in Dubai, seize this opportune moment in a thriving industry.

Why Starting a Restaurant Business in Dubai?

Fueled by the global 'foodie' movement, Dubai and whole UAE emerge as enticing destinations for aspiring restaurateurs. With around 4.7 million annual tourists, Dubai is an ideal hub for restaurant ventures. As Dubai gains recognition as a culinary hotspot, opening a restaurant here holds significant profit potential when executed correctly.

• A diverse consumer base from Asia, Europe, the Americas, and the Middle East.
• Expanding tourism industry .
• Government commitment to economic growth.
• Incentives for food and beverage businesses.

However, before launching your restaurant or cafeteria in Dubai, UAE, several challenges must be addressed. This includes obtaining the necessary licenses and considering setup costs tailored to your specific business type.

Types of Restaurant License in Dubai, UAE

Before obtaining a license, it's important to familiarize yourself with the available options. In Dubai, you can choose from different restaurant licenses:

Floating Restaurant License

This license is suitable for those planning to operate a restaurant or coffee shop for tourists, particularly on yachts, ships, or boats. It permits the serving of food and beverages to tourists during their leisure trips or while the yacht is anchored.

Restaurant and Coffee Shop License

If you intend to establish a larger coffee shop or restaurant in Dubai, you'll require a restaurant and coffee shop license. This license grants permission for a well-equipped kitchen and seating arrangements, both indoors and outdoors. It also allows you to serve a variety of beverages.

Mini Store and Restaurant License

This commercial license is ideal for running a compact restaurant or coffee shop. It authorizes the preparation and serving of food and snacks in an indoor setting. Moreover, it offers the flexibility to sell consumer goods like newspapers, canned food, bakery items, dairy products, and more.

Advantages of Establishing a Restaurant Business in Dubai

Dubai is a popular destination for tourists and expatriates from all over the world. This makes it a great place to start a restaurant business. Here are some of the advantages of establishing a restaurant business in Dubai:

• High demand for food: Dubai has a diverse population with a wide range of culinary preferences. This means that there is a high demand for food from all over the emirate.
• Thriving tourism industry: Dubai is a major tourist destination, with over 17.2 million international tourists visiting the city in 2022. This provides a large potential customer base for restaurant businesses.
• Favorable business environment: Dubai has a business-friendly environment with low taxes and minimal bureaucracy. This makes it easy to start and operate a restaurant business in the city.
• World-class infrastructure: Dubai has world-class infrastructure, including roads, airports, and ports. This makes it easy to transport and import food and supplies.
• Skilled workforce: Dubai has a large pool of skilled workers, including chefs, waiters, and managers. This makes it easy to find qualified staff for your restaurant business.
• High disposable incomes: Dubai has a high population with disposable incomes. This means that people are willing to spend money on dining out.
• Government support: The Dubai government is supportive of the restaurant industry. It has introduced a number of initiatives to promote the industry, such as the Dubai Food Festival.
• Vibrant social scene: Dubai has a vibrant social scene with a wide range of restaurants, bars, and clubs. This makes it a popular destination for people to eat out and socialize.

Suitable Location for Restaurant Business in Dubai, UAE

When deciding where to establish your restaurant, you have two options:

• 1. Free Zone: Many expatriate entrepreneurs favor Free Zone as they enable full ownership (100%) of the company without the need for a local sponsor.
• 2. Mainland Area: Mainland setup requires allocating 51% of your company to a local Emirati sponsor. Interestingly, for restaurants, the preferred choice is often the mainland. This is because, in Free Zones, your restaurant operations are limited to that specific zone. In contrast, the mainland allows you the flexibility to expand your restaurant business across the entire country, making it ideal for those planning to open multiple branches.

Consider factors like your restaurant operations, target market, and long-term goals when selecting a structure, consult legal and business experts for guidance.

Step-by-Step Guide to Get a Restaurant License in Dubai, UAE

If you're an entrepreneur looking to tap into the thriving food industry, follow these steps to secure your license and establish a successful restaurant business.

Step 1: Jurisdiction Selection

Begin by choosing the economic zone in Dubai, be it a free zone or mainland. Seek advice from business setup experts for guidance on selecting the right jurisdiction.

Step 2: Develop a Business Plan

Craft a comprehensive business plan considering your business vision, financial viability, brand management, and contingency plans. Submit this plan to the relevant authorities.

Step 3: Obtain Licenses and Permits

Apply for the necessary business and food licenses from the Food Safety Department and the Department of Tourism, Commerce, or relevant free zone authority. If you plan to open a cafeteria, a cafeteria license is also required.

Step 4: Adhere to Food Regulations

Comply with Dubai's food code, ensuring the highest food safety standards for residents and visitors.

Step 5: Financial Planning

Create a solid financial plan that covers initial investments, equipment, staffing, and licensing costs. For best estimation of capital requirements contact with professional business setup consultants in dubai, UAE like Smart Zones ® UAE .

Step 6: Invest in Technology

Stay competitive by investing in cutting-edge technology for cooking, billing, and other operational aspects of your restaurant.

Step 7: Hire Skilled Staff

Recruit qualified and skilled staff to represent your restaurant and contribute to its success. A well-organized team is essential for achieving business goals, as untrained employees may fall short of expectations.

Remember that the process may vary depending on your chosen jurisdiction and types of operations. Consulting legal and business experts familiar with Dubai's restaurant business landscape is highly recommended.

Operating since 2013, Smart Zones ® UAE provides on-going support to obtain Business Services License in Dubai, UAE incuding Restaurant Business.

Looking for a seamless business setup experience? Trust Smart Zones ® Dubai to pave the way.

Required documents for starting a restaurant in UAE or Dubai.

• A copy of your trade license
• Architectural blueprint or restaurant layout (required in specific free zones)
• Any additional permits, such as a liquor license, if applicable
• A copy of the investor's passport
• A copy of the investor's visa
• Two passport-sized colored photographs
• A comprehensive business plan

Additional documents might be necessary based on your chosen location and type of restaurant.

Cost of Establishing a Restaurant in Dubai, UAE

The Cost associated with establishing a restaurant business in Dubai can vary based on several factors. These include the restaurant's size, location, cuisine type, and the quality of its furnishings. Dubai Economic Development (DED) offers support for obtaining a restaurant license, which can be registered as a sole proprietorship, allowing foreign nationals to own 100% of the restaurant. The approximate cost for a restaurant license in Dubai is AED 18,260. For a detailed and precise breakdown of the licensing costs, it is advisable to reach out to Smart Zones ® UAE , reputable business setup consultants in Dubai, UAE.

Frequently Asked Questions (FAQs)

Why should i consider starting a restaurant business in dubai.

Dubai's diverse consumer base and thriving tourism industry make it a prime market for restaurant entrepreneurs.

What types of restaurant licenses are available in Dubai, UAE?

Dubai offers various licenses, including Floating Restaurant, Restaurant and Coffee Shop, and Mini Store and Restaurant licenses.

What are the advantages of establishing a restaurant business in Dubai?

Advantages include high demand for food, a thriving tourism industry, a favorable business environment, world-class infrastructure, and a skilled workforce.

Where should I establish my restaurant in Dubai, UAE?

You can choose between a Free Zone, which allows 100% ownership, or the Mainland, which often provides more flexibility for restaurant expansion.

What is the step-by-step process to get a restaurant license in Dubai, UAE?

The process involves jurisdiction selection, business plan development, obtaining licenses and permits, adhering to food regulations, financial planning, technology investment, and hiring skilled staff.

What documents are required to start a restaurant in Dubai, UAE?

Required documents typically include a trade license, restaurant layout, investor's passport and visa copies, business plan, and other permits as needed.

What is the approximate cost of obtaining a restaurant license in Dubai, UAE?

The cost can vary based on factors like restaurant size, location, and cuisine type, but an approximate cost for a restaurant license in Dubai is AED 18,260. For a precise breakdown, consult experts like Smart Zones® UAE.

Get in Touch

Want to know more , talk to Smart Zones ® Dubai advisory team they will be happy to help . Ready to invest in your future ?

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How To Open A Restaurant In Dubai [2024 Guide]

• February 22, 2024
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Dubai, famous for its luxury and diverse people, is a great place for food lovers and business-minded individuals. The city’s exciting and varied food culture offers a perfect opportunity for new business owners to open a restaurant in Dubai. By opening a restaurant, you are doing more than just opening a business, you are creating a unique dining experience in a city known for its international flavors.

Why set up a restaurant business in Dubai?

Here are five compelling reasons to start a restaurant business in Dubai.

1. Rapid Growth of Dubai Culinary Scene

Dubai stands as an important hub in the Middle East for the food and beverage industry, making it the second-largest sector in the UAE. A report highlights Dubai’s competitive edge in the global food and beverage landscape, underscoring its expansive restaurant network.

2. Rising Population and Tourist Flow in Dubai

Dubai’s dynamic lifestyle often leads residents and tourists alike to frequent restaurants. This trend greatly supports the expansion of restaurant businesses in the city. Tourists, whether exploring Dubai’s rich cultural heritage or enjoying the beaches at Jumeirah, eventually depend on local restaurants for their daily meals.

3. World-Class Infrastructure

Dubai boasts infrastructure that meets international standards, including modern facilities and architectural marvels. Key attractions like the Dubai Mall, the world’s largest shopping center, and City Walk Mall in Jumeirah, famous for its Michelin-starred dining options, are prime examples. The city offers numerous ideal locations for establishing a restaurant.

4. Simplified Licensing Procedures

Obtaining a restaurant license in Dubai is straightforward. While acquiring an alcohol license involves a specific process and additional fees, it remains accessible.

5. Effortless Business Setup Process in Dubai

Establishing a business in the UAE, particularly in Dubai, is a streamlined and efficient process when following the correct procedures. A variety of business types are available for selection.

How to get a License for a Restaurant in Dubai?

Here is the simple process to get a license for a restaurant in Dubai:

Step 1 : Choose Business Activity

Clearly define your restaurant’s business activities, including the type of cuisine, dining experience (fine dining, casual, fast food), and any additional services like delivery or catering. This step is important for obtaining the right licenses and permits. Ensure your chosen activities align with Dubai regulations and market demands.

Step 2 : Select Jurisdiction

The next thing to do when starting your restaurant is to pick the jurisdiction (Mainland or Free Zone) where you want to set it up. You should choose the one that allows the activities that are best for your business.

Step 3 : Select a name for the Restaurant

Choosing a name for your restaurant is an important step as it reflects your brand identity and cuisine style. Ensure the name is unique, culturally sensitive, and aligns with Dubai naming agreements. Avoid names that could be considered offensive or that resemble existing.

Step 4 : Document Preparation and Submission

Fill out the application form for a new business with accuracy, providing all required personal and business details. Attach all necessary documents, such as your business plan if applicable and passport copies of shareholders. RFZ Corporate Service Provider will submit all the documents and await their initial approval before proceeding to the next steps.

Step 5 : Obtain License and Approval

Next, you need to get your business license issued by the authority depending on your selected jurisdiction. After that, you will need to get approval by the Dubai Municipality department to start your restaurant in Dubai.

Documents required to open a restaurant in Dubai

To obtain a Restaurant License, you need to provide the following documents:

• A copy of primary approval from the Department of Economic Development (DED) .
• If applicable, an interior design layout of the restaurant premises.
• Passport copy of the investor
• Visa copy of the investor
• 2  passport sized photographs

Cost of opening a restaurant in Dubai

To open a restaurant in Dubai can be a considerable financial undertaking, but the restaurant license cost in Dubai varies widely depending on several factors. Securing the necessary licenses and permits, particularly from the Dubai Municipality and the Food Safety Department, is another financial aspect to consider. This process involves various fees, depending on the type of license and permissions required.

One of the primary expenses is the rental cost for the space, which can differ based on the area and the size of the property. Additionally, the interior design and kitchen setup, which encompasses both the dining area and the kitchen equipment, represent a considerable portion of the initial investment.

Moreover, staffing costs, which include salaries, training, and uniforms, form a significant part of the operating budget. Marketing and advertising expenses to launch and maintain the restaurant’s presence in Dubai competitive dining scene should also be considered.

Key Considerations Before Starting a Restaurant in Dubai

Here is what you should consider when starting a food business in Dubai.

• Conduct Thorough Research
• Develop a proper Business Plan
• Consider the Costs
• Decide on the Theme and USP
• Hire Skilled Staff
• Focus on Eye-Catching Interior Design
• Implement Regular Audits

FAQ’s

Q1. what is the food code in dubai.

Ans: The food code in Dubai is a comprehensive set of standards and regulations established by the Dubai Municipality to ensure food safety and hygiene. It covers a wide range of practices, from food handling and storage to staff hygiene and facility maintenance. Compliance with this code is mandatory for all food-related businesses, including restaurants.

Q2. What Type of Certificate Is Required to Open a Restaurant in Dubai?

Ans: To open a restaurant in Dubai, you need to obtain a Food License from the Dubai Municipality, along with a Trade License from the Department of Economic Development. Additionally, all staff handling food must have valid Food Safety Training certificates, ensuring they understand the local food hygiene and safety regulations.

Q3. What are the costs to consider before opening a restaurant in Dubai?

Ans: Opening a restaurant in Dubai requires considering costs such as rental expenses, which can vary greatly depending on location, licensing and legal fees, and the cost of kitchen equipment and interior décor. Staff salaries, utility bills, and marketing expenses also form significant parts of the budget. It is essential to factor in the high cost of living and operating a business in Dubai.

Q4. What are some of Dubai’s best places to set up a restaurant?

Ans: Popular areas for setting up a restaurant in Dubai include Downtown Dubai, known for its high foot traffic and proximity to landmarks like the Burj Khalifa. Jumeirah and Dubai Marina are also desirable due to their affluent demographics and scenic views.

Starting a restaurant in Dubai is a great opportunity for food and business enthusiasts. With its cultural diversity, Dubai is perfect for introducing new eateries. To succeed, focus on getting the right licenses, designing a standout menu, and understanding the local market. It is a competitive but rewarding venture.

Apply Your Restaurant Business License in Dubai With RFZ

If you are planning to open a restaurant in Dubai or obtain a license, a trusted Corporate Service Provider, RFZ is the best choice!

Our experienced team. We will give you trustworthy advice at every step of your business journey in the UAE. Are you ready to make your business dreams a reality? Partner with RFZ , and let us do it together.

For a free consultation, contact us at +971 4 589 0815. You can also send us a WhatsApp message at  +971 4 589 0815  or email your questions to [email protected]. We are here to assist you!

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Introduction: A Restaurant Business in Dubai

Dubai, with its thriving economy, multicultural society, and constant influx of tourists, stands as an ideal destination for aspiring restaurateurs. If you’re passionate about food and dream of owning a restaurant in this dynamic city, you’re in the right place. This comprehensive guide will walk you through the essential steps and insights on how to set up a restaurant business in Dubai.

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Read Article: Top 25 Business Ideas in Dubai for 2023: Your Roadmap to Success

Understanding the Dubai Restaurant Landscape

Before you embark on your culinary journey, it’s crucial to understand the Dubai restaurant landscape. Dubai offers a diverse dining scene, catering to various tastes and preferences. From upscale fine dining establishments to bustling street food stalls, there’s room for all types of restaurants.

Read Article: Why Choose UAE for Your Dream Business?

Market Research

Start by conducting thorough market research. Identify your target audience, study your competition, and pinpoint the gap in the market that your restaurant can fill. This research will help you choose the right cuisine, location, and pricing strategy for your restaurant.

Legal Requirements and Licensing

Setting up a restaurant in Dubai involves several legal and licensing requirements. To operate your restaurant legally, you need to navigate through the following steps:

1. Business Licensing

• Trade License : Register your restaurant under the legal boundaries set by the Department of Economic Development (DED) .
• Food License : Sign an agreement with the Food Safety Department to obtain your food license. This is essential for ensuring the safety and hygiene of your food preparation and service.
• Liquor License : If you plan to serve alcohol, you will require a liquor license. Make sure to follow the specific regulations surrounding the sale of alcoholic beverages.

2. Location and Ambiance

Selecting the right location and creating an inviting ambiance are crucial to attracting customers. Dubai offers two primary options for restaurant locations: free zones and the mainland area. Free zones allow for 100% ownership without local sponsorship, while the mainland area requires approval from the DED authorities.

3. Architectural Rules

Compliance with architectural rules is vital. The Dubai Municipality has specific guidelines for restaurant kitchens, ventilation systems, fireproofing, dishwashing facilities, food storage areas, and more. Ensure your restaurant’s layout adheres to these rules.

Read Article: Steps to Obtaining Your Trade License in Dubai, UAE

Documents needed for starting a restaurant in the UAE or Dubai

• Duplicate of your trade license
• Restaurant blueprint or layout (relevant for specific free zones)
• Any extra permits obtained, such as a liquor permit
• Investor’s passport copy
• Investor’s visa copy
• Two coloured passport-sized photos
• A comprehensive business plan

Financial Planning

The cost of opening a restaurant in Dubai varies based on several factors, including location, size, menu, staffing, and permits. Generally, the cost can range from AED 200,000 to AED 350,000 or more, covering expenses such as company licenses and space rental.

Calculate your restaurant cost today!

Types of Restaurants and Their Costs

• Full-Service Restaurants : These typically demand larger spaces and a higher initial investment, ranging from AED 300,000 to over AED 500,000.
• Delivery Restaurants : A more cost-efficient option with costs ranging from AED 100,000 to AED 160,000, as they don’t require a dine-in area.
• The Hole-in-the-Wall Restaurant : A small-scale option, with an average size of 1,000 square feet and capital ranging from AED 50,000 to AED 80,000, ideal for small-scale production and delivery.

Restaurant Business Plan

A solid business plan is the foundation of your restaurant’s success. It should include:

• Market Analysis : Understanding your target market and competition.
• Menu Development : Creating an appealing and well-priced menu.
• Marketing Strategies : Developing plans for marketing and promotions.
• Operational Plan : Detailing how your restaurant will operate.
• Financial Projections : Estimating your expenses, income, and profitability.

Involving Investors

If you require additional funding for your restaurant, consider involving investors. However, be cautious when drafting agreements with them to avoid potential pitfalls:

• APR Percentages : Pay attention to the annual percentage rate (APR) in your agreement with investors, as high APRs can lead to significant financial burdens.
• Loss Equity : Clearly define the distribution of losses between you and your investors in case of business failure.

Obtaining Licenses

Once your restaurant business plan is ready, it’s time to obtain the necessary licenses:

1. Trade License

• Identify your business activities and nature (commercial or professional).
• Register a trading name for your company.
• Complete the application form with the DED department.
• Provide all required documents.
• Submit the information to the DED for approval.

2. Food License

• Ensure you have your trade license approved first.
• Present a blueprint of your restaurant’s layout to authorities.
• Obtain approval for food safety measures from the Food Control Department.
• Accommodate specific areas in your blueprint, such as food storage, washing areas, and ventilation systems.
• Submit all necessary information to obtain your food license.

Read Article: Difference Between Professional and Commercial Trade Licenses in Dubai, UAE

Unique Selling Points (USPs)

Differentiating your restaurant is crucial. Consider your USPs:

• Restaurant Ambiance : Create a unique and inviting atmosphere.
• Food Menu : Develop a diverse and appealing menu.
• Overall Servicing Protocols : Ensure excellent customer service.

Alfazone: Your Restaurant Setup Partner in Dubai

Navigating the intricacies of setting up a restaurant business in Dubai can be challenging. That’s where Alfazone Businessmen Services comes in. We offer expert guidance and support throughout the process, from obtaining licenses to financial planning and beyond. Let us help you turn your dream of owning a restaurant in Dubai into a reality.

In conclusion, setting up a restaurant business in Dubai is a rewarding endeavour, but it requires careful planning, compliance with regulations, and a well-thought-out business plan. With the right preparation and the support of experienced professionals like Alfazone, you can embark on your culinary journey with confidence.

Calculate your restaurant business setup cost in Dubai

Determining the startup costs for your restaurant business in Dubai is a crucial step towards your culinary venture’s success. Our expert’s calculator simplifies this process, considering various factors such as location, size, permits, and more. With our tool, you can get a precise estimate of what it will take to establish your restaurant in Dubai, helping you plan your budget effectively and make informed decisions. Take the guesswork out of your business setup cost calculations and embark on your culinary journey in Dubai with confidence.

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Overview Of Starting Restaurant Business In Dubai

Embarking on the venture of starting a restaurant business in Dubai is a thrilling journey brimming with opportunities and challenges. As a vibrant hub of diverse cultures and a global culinary destination, Dubai offers a fertile ground for culinary entrepreneurs seeking to establish their presence in the thriving food industry. This article serves as your […]

Embarking on the venture of starting a restaurant business in Dubai is a thrilling journey brimming with opportunities and challenges. As a vibrant hub of diverse cultures and a global culinary destination, Dubai offers a fertile ground for culinary entrepreneurs seeking to establish their presence in the thriving food industry.

This article serves as your compass, providing a comprehensive overview of the essential steps and insights involved in opening a restaurant in Dubai. From navigating licensing procedures to understanding the local market dynamics, join us on this expedition as we unravel the intricacies of turning your restaurant dream into a flavorful reality in the heart of Dubai.

What to Consider Before Starting a Restaurant Business in Dubai?

As you embark on the exciting journey of establishing a restaurant business in Dubai, a comprehensive understanding of key considerations becomes paramount for your venture’s success.

Firstly, navigating the labyrinth of licensing requirements is a pivotal step. The restaurant license cost in Dubai varies based on the type of license, location, and other specifics. This intricacy underscores the importance of thoroughly researching and budgeting for the various permits and approvals required to operate legally within the city.

Simultaneously, the process of restaurant setup in Dubai involves a myriad of factors. Choosing the right location is not just about foot traffic; it entails aligning with your target audience and complying with zoning regulations. This strategic decision lays the groundwork for your restaurant’s visibility and accessibility.

Delving into the local market dynamics is another critical consideration. Understanding the culinary preferences, dining habits, and demographics of your target audience helps fine-tune your restaurant concept. Conducting a thorough feasibility study aids in identifying gaps in the market and tailoring your offerings to meet specific needs.

Financial preparedness is key to a sustainable restaurant venture. Anticipating operational costs, including staffing, procurement, and marketing, ensures a realistic budget. Developing a comprehensive business plan is instrumental in outlining your financial projections, marketing strategies, and contingency plans.

By examining these considerations in detail, we aim to provide aspiring restaurateurs with practical insights and actionable advice. Whether you are navigating the intricacies of licensing or strategically selecting your restaurant’s location, each aspect plays a crucial role in shaping the success of your culinary enterprise in the dynamic and diverse landscape of Dubai.

Make Customers Happier with Better Service

Enhancing customer satisfaction is a cornerstone of success when venturing into the restaurant business in Dubai. Elevating your service quality not only fosters customer loyalty but also contributes to the overall reputation and success of your establishment. As you delve into the intricacies of how to open a restaurant in Dubai, prioritizing exceptional service is a strategic move that pays dividends.

Firstly, personalized service goes a long way in creating memorable dining experiences. Train your staff to actively engage with customers, understand their preferences, and cater to individual needs. This personalized touch establishes a connection that extends beyond the dining table.

Efficient communication is another vital aspect. Clear and concise communication, both within your team and with customers, ensures smooth operations. From order accuracy to addressing inquiries, effective communication actively contributes to a positive customer experience.

Timeliness is key in the fast-paced world of dining. Streamlining your processes, from order taking to food delivery, ensures prompt service. Implementing technology solutions, such as efficient POS systems, actively contributes to quicker turnaround times.

Quality control is non-negotiable. Consistently delivering high-quality food and beverages is a fundamental part of customer satisfaction. Regularly assess and refine your menu offerings, ensuring that each dish meets the standards that your customers expect.

Feedback mechanisms actively encourage customer engagement and provide valuable insights. Implementing customer feedback systems, whether through surveys or online platforms, allows you to actively gauge satisfaction levels and make data-driven improvements.

Businesses Must Obtain a License to Operate Legally

Within the bustling environment of the restaurant business in Dubai, obtaining the requisite licenses stands as a pivotal undertaking for fast-food establishments seeking both legal adherence and operational smoothness. As an integral facet of the city’s regulatory framework, businesses, particularly fast-food restaurants, must actively secure the appropriate licenses to ensure alignment with Dubai’s stringent laws and regulations.

Embarking on this regulatory journey demands a nuanced comprehension of the specific requisites tailored for fast-food restaurants Dubai. This entails a thorough examination of the type of license necessitated. It factors in considerations like the restaurant’s geographical location, scale, and the array of services it aims to provide.

The procedural aspect of obtaining licenses entails a series of active steps, demanding meticulous adherence to stipulated guidelines. Entrepreneurs in the fast-food sector need to proactively engage in the submission of all requisite documents, adhere rigorously to health and safety standards, and ensure seamless compliance with zoning regulations. The precision and timeliness of these steps become imperative not only for acquiring approvals but also for averting potential legal entanglements.

Collaboration with pertinent authorities emerges as a key strategy in expediting the licensing process. Establishing robust communication channels and actively seeking guidance from regulatory bodies represent proactive measures that ensure your fast-food restaurant harmoniously aligns with the city’s legal framework. This proactive stance not only streamlines the process but also mitigates the likelihood of encountering obstacles along the licensing journey.

Choosing The Right Place

Selecting the optimal location is a critical aspect of establishing a successful restaurant business in Dubai. This strategic decision involves a series of proactive considerations to ensure that the chosen site aligns seamlessly with the unique dynamics of the city’s culinary landscape.

First and foremost, entrepreneurs must actively assess the demographic profile of the area. Understanding the target audience, their preferences, and dining habits is instrumental in tailoring the restaurant’s concept to meet local demands. Conducting thorough market research actively contributes to informed decision-making, allowing for a strategic match between the restaurant’s offerings and the preferences of the surrounding community.

On the other hand, accessibility is another key factor that should be actively factored into the decision-making process. Choosing a location that is easily reachable and well-connected enhances the potential customer base. Proximity to popular landmarks, public transportation, and other businesses actively contributes to the convenience and visibility of the restaurant.

Moreover, considering the competitive landscape is imperative for the sustained success of a restaurant in Dubai. Entrepreneurs must actively analyze the presence of similar establishments in the vicinity and identify opportunities to differentiate their offering. This proactive approach enables the crafting of a unique value proposition that stands out in a crowded market.

Furthermore, understanding the zoning regulations and obtaining clarity on licensing requirements specific to the chosen location is a proactive step that ensures legal compliance. Collaborating with local authorities and actively seeking guidance on regulatory aspects safeguards the business from potential challenges in the future.

Equipment Cost is Important for Starting a Business

In the landscape of launching a restaurant business in Dubai, considering equipment costs is a cornerstone of the planning process. This imperative step requires a thorough and proactive approach, as the decisions made in this realm impact the overall budget. They also impact on the operational efficiency and long-term viability of the establishment.

Entrepreneurs initiating this journey must embark with a stance by compiling a list of the required equipment for their restaurant. This comprehensive inventory encompasses not only kitchen appliances but also extends to furniture, point-of-sale systems, and various other indispensable items. Through this detailing process, business owners can construct a precise budget, minimizing oversights and unexpected expenses during the setup phase.

Furthermore, engaging in research and obtaining multiple quotes from diverse suppliers becomes a strategic move to ensure cost-effectiveness. Entrepreneurs are encouraged to actively connect with suppliers, negotiate prices, and explore potential discounts or package deals. This approach not only contributes to immediate cost savings but also empowers entrepreneurs to make well-informed decisions.

Moreover, the consideration of equipment durability and quality is paramount for long-term success. Entrepreneurs must actively assess the expected lifespan of equipment, scrutinize warranty terms, and evaluate the reputation of suppliers. This ensures that the investment in equipment is cost-effective and aligns with the durability required for sustained and efficient operations.

On the other hand, actoring in maintenance costs represents another critical facet of this strategic consideration. Proactive planning for routine maintenance and potential repairs ensures the longevity and continual efficiency of the equipment. This helps preventing unforeseen expenses that may disrupt operations in the future.

If you are looking for more information about this and other related topics, do not hesitate to stop by our insights section

What is the Ideal Budget for a Dubai Restaurant in Business?

Crafting the ideal budget for a restaurant business in Dubai necessitates a meticulous strategy. The dynamic nature of the culinary landscape in this vibrant city requires it. Entrepreneurs venturing into the realm of restaurant ownership must consider various factors to ensure their financial plan aligns with the unique demands of Dubai’s competitive market.

Starting with a proactive stance, comprehensive market research becomes paramount. By delving into prevailing cost structures within the local restaurant industry, entrepreneurs gain invaluable insights. This helps enabling them to set a budget that reflects industry norms and anticipates potential challenges.

Moreover, counting for location-specific variables is a fundamental step in this process. Dubai’s diverse neighborhoods may present varying rental costs, utility expenses, and operational overheads. Entrepreneurs must actively assess and adapt to the specific demands and nuances of their chosen location. This ensures that their budget is finely tuned to the unique dynamics of the area.

Furthermore, the type and scale of the restaurant must be considered. Fine-dining establishments may have distinct budgetary requirements compared to casual or fast-food ventures. Contemplating the target audience, conceptual positioning, and scale of the restaurant informs decisions related to interior design and menu offerings.

On the other hand, engaging with suppliers and negotiating prices are integral components of developing an achievable budget. Entrepreneurs should adopt a good approach by exploring potential partnerships, seeking out discounts, and leveraging package deals. It helps contributing to cost efficiency. This strategic engagement with suppliers enables entrepreneurs to optimize their financial resources, ensuring prudent allocation across various operational aspects.

By following this steps, entrepreneurs can formulate a realistic and effective budget. This approach positions their establishment for not only financial stability but also success in navigating the dynamic and competitive culinary landscape of Dubai.

How to Choose the Right Location for Restaurant Business in Dubai?

Choosing the right location for a restaurant business in Dubai is a crucial decision that requires a strategic and proactive approach. Entrepreneurs entering the dynamic culinary scene of Dubai must consider several factors to ensure the success and visibility of their establishment.

First and foremost, entrepreneurs should assess the target market and demographics of the desired location. Understanding the preferences, habits, and behaviors of the local population enables a proactive selection of a location that aligns with the target audience, increasing the chances of success.

Moreover, researching foot traffic patterns is another key consideration. Entrepreneurs must analyze the flow of people in potential locations to identify areas with high footfall, ensuring visibility and accessibility for their restaurant. Proactively selecting a location with bustling pedestrian activity can significantly contribute to the success of the business.

Additionally, entrepreneurs should evaluate the competition in the chosen area. A thorough assessment of nearby restaurants, their offerings, and popularity enables entrepreneurs to make informed decisions about their restaurant’s positioning and unique selling points. This analysis helps avoid saturation in a particular market and allows for strategic differentiation.

On the other hand, considering the cost implications of the chosen location is essential. Entrepreneurs must evaluate rental prices, utility costs, and other overheads associated with specific areas. Striking a balance between a desirable location and budget constraints ensures a financially sustainable choice.

Furthermore, engaging with local authorities and understanding regulatory requirements is vital. Entrepreneurs should navigate through licensing procedures, zoning regulations, and other legal considerations to ensure compliance and the seamless operation of their restaurant.

In case you want to know more about our services and how we can help you, just head to our contact section and reach out to us today.

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