Are you planning to start your restaurant business in Dubai but need help figuring out where to start? Join us as we help you in this journey of starting a restaurant in one of the world’s most diverse business hubs.
From understanding licensing and permits to designing a menu that reflects Dubai’s food culture, this blog is your complete resource. Join Shuraa Business Setup as we help you learn the steps, challenges, and creative processes to realise your restaurant's vision in this culinary hotspot.
Expenses Before Opening a Restaurant
Starting a restaurant business necessitates a substantial financial commitment. Hence, planning these expenses before commencing the venture is crucial to prevent overspending and ensure adherence to your budget. Prospective restaurant owners must grasp these financial aspects in advance.
Key expenses encompass licensing fees, property rent or purchase costs, essential permits, staff training programs, operational software, insurance coverage, and working capital. Effective management of these initial investments ensures the success of your restaurant business in Dubai.
Trade License for Opening a Restaurant in Dubai
Starting a restaurant in Dubai requires getting specific licenses to ensure legal compliance and operational efficiency. Here’s a detailed look at the essential permits and steps to get them:
1. Trade License
- Define the type of restaurant operation in the license.
- Costs vary depending on the restaurant type, typically ranging from AED 30,000 to AED 40,000*.
Steps to Get a Trade License
Below are the steps to get a trade license- Determine the nature of the enterprise (commercial, professional, or industrial).
- Designate legal status and register a trade name.
- Apply for initial approval.
- Lease a corporate office.
- Prepare the required documents.
- Submit final approval application to the DED.
2. Get the Food License Approval
- Issued by the Food Safety Department after obtaining the Trade License.
- It requires the submission of specific documents and restaurant layout details.
Documents Required for Food License
- Copy of the trade license.
- Interior design layout blueprint, including:
- Entry and exit passages.
- Food processing and storage areas.
- Windows, ventilation system, and dishwashing spaces.
How to Start a Restaurant in Dubai?
Opening a restaurant in Dubai requires strict compliance with the city’s food code (Food Control Department of Dubai Municipality), which applies to all types of eateries, from upscale restaurants to cosy cafes and bakeries. This code establishes industry standards that are essential for your establishment’s success.
We have compiled a concise yet comprehensive list of essential factors to help you navigate this culinary business. Follow this guide to transform your restaurant dream into reality in Dubai’s vibrant landscape.
1. Defining Your Restaurant’s Idea and Special Appeal
When starting a restaurant in Dubai, creating a unique concept is crucial to differentiate yourself in the city’s busy food scene. A distinctive idea gives you an advantage, helping you to stand out among other restaurants in Dubai.
Your restaurant’s concept includes the style of service, menu choices, and overall atmosphere. Creating a consistent experience that appeals to your target customers is important. Additionally, it's important to identify your restaurant’s Unique Selling Point (USP). Introducing innovative dishes or adopting uncommon themes can attract a large customer base.
2. Choose a location
Dubai’s diverse population of over two hundred nationalities allows restaurant owners to appeal to a wide range of customers, making location a critical determinant of success. Before choosing a spot, thorough research must ensure your restaurant attracts Emirati locals and tourists. When selecting a location, consider these key factors:
- Visibility: Select a spot with high foot traffic and ensure your restaurant sign is easy to spot.
- Accessibility: Opt for an easily reachable area to encourage repeat visits and enhance customer satisfaction.
- Target Audience: Identify your customer base and choose a location that meets their preferences and expectations.
- Affordability: Research rental costs and potential fluctuations to maintain profitability, especially for specific menu items.
- Proximity to Suppliers: Evaluate shipping costs and supplier proximity to optimise raw material procurement and reduce expenses.
- Jumeirah: Perfect for upscale dining venues, benefiting from its affluent reputation.
- Emirates Hills: A prestigious residential enclave drawing upscale clientele.
- Dubai Creek: Blending tradition with modernity, appealing to both tourists and locals.
- Mall of the Emirates: A bustling shopping destination, ideal for attracting shoppers and tourists alike.
- Al Quoz: It is renowned for its vibrant arts and culture scene and is suitable for trendy and artistic restaurant concepts.
3. Strategies for Developing Your Menu
Creating an appealing menu is crucial before your restaurant opens. Thoughtful planning and strategic decisions are key to crafting a menu that attracts customers and ensures profitability. Here’s how to approach menu development- Menu Selection: Choose menu items that are varied and unique to attract customers.
- Strategic Pricing: Price your menu items carefully to cover prime costs, including Cost of Goods Sold and Labor Costs, aligning with your financial goals.
- Profit Maximization: Structure your menu to promote high-profit items. Strategically place these items where they will grab attention and create enticing menu descriptions to attract customers.
- Adaptability: Start with a partially designed menu and refine it based on customer preferences. Focus on popular items and update your offerings to keep your menu fresh and appealing.
4. Planning Your Restaurant Layout
Effective planning is essential to design a layout that aligns with your menu and theme. Follow these guidelines to optimise your restaurant’s layout:- Space Efficiency: Utilize available space efficiently to allow for unrestricted movement. Strategic placement of tables, kitchen equipment, and other elements is crucial for seamless operations.
- Functionality: Analyze and organise every aspect to ensure tables, seating arrangements, and kitchen equipment are positioned for maximum efficiency. This ensures smooth daily tasks.
- Enhanced Guest Experience: Thoughtfully arrange the layout to improve the dining experience. A well-organized space facilitates operations and creates a pleasant atmosphere for diners.
5. Building a Competent Team
Before commencing the hiring process, it’s essential to identify the roles you need to fill within your establishment:- Sous Chef
- Prep Cooks
- Manager
- Servers
- Bartenders (if alcohol service is part of your offerings)
- Host
- Cleaning Staff
Cost of Opening a Restaurant in Dubai
Restaurant expenses can vary significantly depending on the type of establishment. The cost of opening a restaurant in Dubai is typically between AED 20,000 and AED 50,000*.
This includes all operational expenses such as company licensing, rental space, and necessary permissions. Each restaurant has unique financial requirements, so it's important to plan accordingly for a smooth launch and sustained operation.
How to Get a Restaurant License in Dubai?
Here's a guide on how to get a restaurant license in Dubai:Market Research and Concept Development
- Research the local market, target audience, and competitors.
- Develop a unique restaurant concept that resonates with your audience.
Business Plan and Financials
- Create a detailed business plan outlining your concept, target market, budget, and revenue projections.
- Plan your finances, like the startup costs, operational expenses, and contingency funds.
Legal Requirements and Licensing
- Familiarise yourself with Dubai’s restaurant regulations.
- Get necessary licenses from the Department of Economic Development (DED) and Dubai Municipality.
- Register your business and acquire permits like food handling and alcohol licenses if applicable.
Location Selection and Lease Negotiation
- Choose a prime location based on visibility and accessibility.
- Negotiate lease terms ensuring the space meets health and safety standards.
Interior Design and Ambiance
- Design an inviting interior that complements your restaurant's theme.
- Source furniture, decor, and lighting to create a pleasant dining atmosphere.
Menu Development and Suppliers
- Create a diverse menu catering to local and international tastes.
- Get in contact with reliable suppliers for quality ingredients.
Staffing and Training
- Recruit skilled chefs, waitstaff, and managerial staff.
- Provide good training to ensure consistent service and food quality.
Marketing and Promotion
- Develop a marketing strategy using online platforms and local advertising.
- Organise promotional events to generate buzz before opening.
Operations and Quality Control
- Implement efficient operational processes and inventory management.
- Maintain high standards of food quality and customer service.
Compliance and Hygiene
- Adhere to food safety regulations and maintain cleanliness.
- Regular health inspections should be conducted to check hygiene.
Following these steps will help you establish a successful restaurant in Dubai while ensuring compliance with local regulations and meeting customer expectations.
Documents Required for Restaurant Business in Dubai
Here is a list of documents required to start a business in Dubai and get a restaurant license.- Copy of your trade license
- Blueprint/layout of the restaurant (only applicable for certain free zones)
- Additional permits that may have been acquired such as liquor permit
- Passport copy of the investor
- Visa copy of the investor
- 2 coloured passport sized photographs
- Business plan
Get Assistance with the Shuraa Business Setup
At Shuraa Business Setup, we offer full support throughout the establishment of a business or opening of a restaurant in Dubai. Our guide will provide essential insights to start your business successfully. For further details and personalised assistance, don’t hesitate to contact us anytime—we’re here to help.
