How to open a restaurant in Dubai

Last updated on January 13, 2022

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How to open a restaurant in Dubai

How to open a restaurant in Dubai is always in the mind of every investor as a opportunity to start a business; Middle East is the hub not only for the trading of commodities; but also for tasty delights from all over the globe with genuine cultural cuisines. Dubai is admire for tourism and one of the major reasons why people travel to Dubai; is known the world’s best cuisines and develop their flavor along with enriched traveling knowledge. According to the study from Euro monitor International, by the year 2019; it is predictable that extra 19,000 outlets will come in with the Food and Beverage field in Dubai.

Opening a restaurant in sharjah or in Dubai is very profitable; because UAE without any doubt is one of the leading as well as best ever rising economies. The restaurant sector mostly in Dubai, over the past few years, has seen enormous growth.

With people ready to attempt newer cuisines from diverse geographical areas; the focal point on businessmen all around the world are eyeing towards starting a restaurant in Dubai. As we be familiar with one of the most appropriate factors of traveling to abroad; is to treat in their Local and International available cuisines; there is a huge scope of the restaurant business in Dubai.

How to open a restaurant in Dubai or procedure to open a restaurant in Dubai

According to the authority in Dubai, the least amount size of restaurant must be of 750 sq. Feet. A register Interior set up Contractors will get over the project; and chase the checklist from the DM and will obtain the approvals from Dubai Municipality.  The early approval can be taken from DED; however the final trade license in Dubai to open the gates of the restaurant will depend on supply Contractor.

In order to make it easy to understand the flow and the process of starting a restaurant in Dubai; so here is a short summary of the process;

Step 1. Catch your business plan as well as feasibility developed by experts.

Step 2. Hire the services of a consultant who will make it easy; that is to take all kinds of approvals from the Dubai Economic Department

Step 3. Hire an interior Fit out Contractor so that to finalize the layout of the restaurant.

Step4. After an inspection if this is ok; then you are officially permitted to open doors.

Why starting a restaurant in Dubai is difficult and how you can succeed?

  • Choice of location – Some of the significant factors which may organize the score of your restaurant; will be convenience, parking space, profitable as well as resident properties nearby.
  • High rent – As per the facts as well as studies; we propose that your restaurant rent must not go beyond 10% of your projected income per annum.
  • Unidentified Standard Operating Systems (SOP’s) – Not having accurate SOP’s may cause in bad services and reviews.
  • Preference of Menu and Restaurant Concept – The restaurant must not be based on your own experience and personal likes, generally; the restaurant is to serve clients that what exactly will boom the restaurant in clients view.
  • Restaurant workers – The concept of restaurant runs on food and service, the staff is the media of your business.

Restaurant license cost in Dubai

We have some existing customers who are productively running restaurants, cafeteria and mini restaurant; it will not be hard for us to tell you restaurant license cost in Dubai. But you require to know that the restaurant license cost in Dubai; wholly depend on the licensing authorities and lease value; the average charges to form a well-mannered independent restaurant ranges from AED 100,000. The essential requirements for leasing out space as per the authority are minimum 750 Sq/m.

An officially permitted procedure, in order to open a restaurant business in Dubai does not take more than a week; starting a restaurant in Dubai May lead in a very good investment opportunity for businessmen around the world.

Also keep in mind that the type of a restaurant license in Dubai as per the DED are as following:

  1. Restaurant and Coffee Shops
  2. Floating Restaurant
  3. Restaurant and Mini Store
  4. Multi Restaurants Center
Restaurant license cost in Dubai
Initial approval fee 235
Trade Name Approval and Reservation 735
Licensing & registration fee + 5% of annual office rent 12,000
Labor Card Fee 2,600
Court Notarization Fee + for legal translator 2,600
Immigration card fee 5,000
PO Box and Company Stamp Fee 900

FOOD CODE for Restaurant license in Dubai

Food Control Department of Dubai Municipality make sure all the restaurants in starts have to pursue FOOD CODE; in order to get the final trade license; to begin with from the start of food production to end of food consumption.

You have to acquire the food safety department approval in Dubai; before receiving the final trade license from Dubai Economic Department for all kind of restaurant or cafeteria license in Dubai. You will need the below mention documents to find the Food Clearance from DM.

  • Trade license copy or prime approval from authority which issues trade license
  • Interior design layout of the location by registered DM Interior Designer; this is essentially a blueprint of your restaurant.

We advise to search for assistant of Business Consultant; who will facilitate and assist you till the end of all formalities and approvals. There are also permits, requires for restaurant business that I can help you from start to end process.

The Location When Starting a restaurant in Dubai

Dubai is an emirate that is recognized home to more than 200 nationalities with unique cultures. What spot or place is suitable for starting a restaurant in Dubai; depends on what target group are you trying to serve.

Dubai has various zones that have an impact on the target spectators. There are Business zones such as Media City, Education City or Business Bay; where most of the Western Expats will be establish. Tourist areas such as Jumeirah Road and Dubai Marina will have a mix of Western and Asian people. From our practice, the Hot spots for starting a restaurant in Dubai are Business Bay; Jumeirah Beach Road, and JBR Dubai Marina; but up till now again as supposed it entirely depends on what cuisine you will be serving; what is the place and demand of market.

Expert Tips for How to open a restaurant in Dubai

Unlike any profitable setup, starting a restaurant in Dubai; also requires successful business planning. However the question “Which location must I start my Restaurant in?” plays a very vital role in the success ratio.

According to our study and existing customers; I also have made an assessment to highlights the Do’s and the Don’ts for the orientation.

What are the Dos While looking for restaurant setup in Dubai?

  • To start, the first step is the business feasibility; and planning to have a clear understanding of your market and future predict on ROIs.
  • Do make a pricing policy with a proper analysis in order to bear out the cost and expenses.
  • Do arrange a detailed marketing plan and use suitable online platforms that result in more than average percentage of sales.
  • You require to Do SWOT analysis with assist of experts about competition around; and what strategies could be used.
  • Do take necessary approval and NOC from related authorities.

What are the Don’ts While looking for How to open a restaurant in Dubai?

  • Don’t try of starting a restaurant in Dubai, or in fact anywhere, if you don’t have relevant experience. It is good to take guidance or engage relevant and experienced professionals.
  • Be Realistic do not charge too much your offerings on the menu
  • Also don’t build up a menu on your on wishes; go with the taste of clients. 

How to open a restaurant in Dubai

Searching for the options it may seem that How to open a restaurant in Dubai Free zone; will charge you less as compare to forming in Dubai main land. However the strict rules and regulations in the Free Zone make it hard to go with such option. So the most successful option for restaurant set up is the main land option.

As per the sanction structure as well as commercial law in the United Arab Emirates; main land option permit a foreign investor to hold only 49% of share; while 51% of the share will be with local sponsor. I recommend opting for trusted Sponsor rather than an ordinary Local sponsor that will eradicate the risk; we will ensure that our sponsor will give you full command over operations, profits and management. We as a company will provide a local sponsor with full sign MOU.

As you have almost certainly estimated by now; receiving a license as well as approvals is a critical part of the process. It is vital to perform each step on time; so that you can begin opening the doors to your restaurant or cafeteria as soon as possible.

Our consultants have ability and also experience in setting a variety of restaurants; they also have knowledge of the authority and know How to open a restaurant in Dubai.

In my view, I highly suggest taking help from business consultant like us; so if you think that you want to get a right kick start; that is to receive your cafe or restaurant license in Dubai; then I would love to invite you for a coffee; and giving you additional free tips on doing it just right now.