In the last couple of years, Dubai has become a global hub for opportunities- both from tourism and business perspectives. Hence it’s only natural that entrepreneurs who share avid interest and passion in the culinary avenue harbour ambitions for setting up a restaurant business in the gulf city. As per the latest numbers, Dubai hosts a rough 3000 restaurant, café, and pubs per, million residents. And quite expectedly, they are making good money.
Industry reports and studies claim that the restaurant industry in the UAE will reach $29.5 billion in earnings around 2020. Here’s a detailed breakdown of steps that will help you to set up your restaurant, along with the appropriate licensing in Dubai.
How to Get a Restaurant License in Dubai?
There is always an easy and convenient route of professional assistance that will help you to penetrate the restaurant industry in Dubai. However, it’s only necessary for you to have a detailed understanding of all the significant steps first-hand to make well-informed decisions when necessary.
- You must arrange for all the necessary licenses to run the business lawfully.
- Decide if you want to setup the restaurant in the Dubai mainland or a free zone.
- Next, you must forge up a business plan for submission to the relevant authorities.
- It would help if you estimated cost and expenditure.
Step 1: Acquiring Food &Trading Licenses
At the very beginning, you must look to earn all the necessary licenses from the authorities. You must acquire both food and trading licenses from the Department of Food and Safety and the Department of Economic Development (DED), respectively. This will help you to start your plan on the right footing. It is necessary to mention;you will have to spend a rough AED 10,000 to AED 12,000 to complete the whole licensing process.
Step 2: Selecting a Location
Your immediate next step after getting the licenses will be choosing your restaurant’s potential location in Dubai city. Its bet suggested making up mind whether to go to the mainland area or operate within one of the free zones.
You must understand that setting up a restaurant in Dubai’s mainland area will require approvals from the DED authorities. Additionally, choosing the mainland area can also help you to find a local sponsor for your business. You will also get the option for trading, where the sponsor will have the more significant portion of the share(51%).
However, if you take the other alternative for your restaurant setup, i.e., Dubai free zones, you will have to seek the consent of the corresponding free zone authority. Free zone areas compared to the mainland will permit you to for the complete hold of your shares, with no requirement for any local sponsor. However, it may limit the trading area for the business.
Once you have settled on your restaurant’s potential location, you must then decide on the suitable locality. It best suggested hiring business setup consultants to understand the famous local areas in the city.
Step 3: Drafting a Business Plan
Next, you must prepare your business plans to include all relevant and pressing factors like SWOT analysis, financial forecasting, target marketing, contingency plans for uncertainties, market survey, break-even analysis, research, and cash follow projections. It’s essential to mention that every single of these factors will contribute to the business’s sustenance and growth.
Step 4: Estimating Cost and Expenditure
Lastly, it would be best if you had a detailed and well chalked out plan of the financial expenses involved in setting up your restaurant business in Dubai. This financial estimation will help you trackhow much you need to spend and how much you are spending. Other questions like how much will this restaurant cost type? What will be the cost of equipment, gear, and staffing? How much will be licensing cost?
Layout Requirements for a Restaurant in Dubai
- You must meet all the necessary standards held by the Food Control Department for opening a restaurant business.
- The establishment must be more than 750 sq.ft. with a minimum kitchen area of at least
- 300sq ft. to 380sq ft. This will largely depend on the tandoor oven.
- It would be best if you used stainless steel shelves when fitting the food storage areas.
- The washing area in your restaurant kitchen must have individual basins for meat, fish, fruits, vegetables, and dishes.
- You must also provide a separate basin for hand washing.
- Your kitchen must also feature a chimney with an extension of 2 meters higher than the nearest building.
Business setup consultants at the Dubai business setup can help you draft a comprehensive business plan, get approvals for a food license, trade license, and ultimately help you start a restaurant business in Dubai.