Guide to setup a restaurant business in Dubai, UAE

The global restaurant business is booming and will continue to flourish with the simple understanding of the fact that food is an indispensable part of the world, come what may. Despite the economic fluctuations, the food business in Dubai, UAE is an investment of the longest haul. Dubai especially, boasts of one of the most affluent economies, a food business is great to flourish. We have prepared a detailed guide to help with restaurant business setup in Dubai, UAE.

 

Why setup a restaurant business in Dubai, UAE 

The international foodservice market is at around USD 3tn which is at rapid growth. In Dubai, the trend is more or less the same. The Emirates’ market is estimated to be worth AED 3.3bn, inclusive of fast-food restaurants accounting for USD 1.5bn, casual dining with USD 880mn, and fine dining around USD 840mn. The size of the market is about 4.2 times higher than the US average. Dubai stands as the melting pot for various cultures from all around the world with a great tourist footfall every year. It, therefore, hosts an exotic mix of platters from all over the world to its people. Setting up a restaurant in Dubai could prove to be the best investment for an investor. It could be extremely profitable if managed well.

However, the restaurant business in Dubai comes with strict codes to abide by. Whether you are a fine dining restaurant, a bakery, or a café, you will have to abide by these food codes. The process for all of the three remains largely the same.

Key factors in restaurant business setup in Dubai

Mentioned below is a comprehensive list of things to keep in mind and how to open a restaurant business in Dubai.

• Type of restaurant activity: Decide what type of restaurant business you want. Whether it is fine dining, fast food outlet, or a café, and stipulate the type of food you wish to sell. It’s important to chart out the basics to not delay the application process. Also, ensure that you do not carry out any other trading activities that are not listed on the license.

• Company name: Before a restaurant business setup in Dubai, decide upon a company name. Here, there are a few stipulations to keep in mind while deciding the company name. For example, if you plan on using your name, then you can only use your name in full. Also, no such name should be used that is already used before.

• Restaurant license in Dubai: You will require two separate restaurant licenses in Dubai to set up a business as a part of the process:

• Trade license application: if you wish to set up a restaurant company in Dubai Mainland, you need to make your initial application to the DED. For Free Zone setups, you can directly apply to relevant managing authorities.

• Application for food license in Dubai: This is issued by the Dubai Municipality’s Food Safety Department. As a part of the application process, you need to provide a copy of the floor plan including all entrances and exits, food processing & storage areas, all windows and ventilation, food processing equipment, and all washing equipment.

• Documentation: The documents required for this business setup are:
  • Fully-filled application form
  • Passport size copy of proposed owners or owners
  • Two colored sized photos

For your license to remain valid, you need to adhere to all food codes as put forward for Dubai.

• Deciding a location: Location will play a huge role in your profits and popularity. Make sure you do a good research on the location of the business in terms of demographics.

There are a few factors under demographics that you should keep in consideration

• Visibility: setting up your restaurant in a visible location is important. This will ensure a high footfall.

• Accessibility: It is important to ensure that your restaurant is accessible to everyone. If people can reach you easily, then they might find it easier to visit you again.

• Customer Base: Identify your target audience and then decide upon a location to ensure desired audience base.

• Affordability: If the rent is high then making profits on certain foods might not be easy. It is crucial that you do a good research on the lease prices of available spaces.

• Proximity to suppliers: The shipping costs can sometimes exceed that of the raw materials. It is therefore important to ensure that the proximity to the suppliers isn’t much, so as to cut down on your shipping costs.

What is "Dubai Food Code”?

The food code is the set of rules and codes applicable to every investor in Dubai who plans to set up a food business in Dubai. The food control department in Dubai established a new world-class food safety system to help provide safe food to all its residents and tourists. This is known as the “food code”.

The food code is applicable to the following types of restaurant businesses in Dubai

• Restaurant & cafes
• Canteens in schools and hospitals
• Bakeries
• Supermarkets
• Catering units 

Documents required for setting up a restaurant business in Dubai 

The three main documents as mentioned above are:

• Trading license in Dubai
• Food license in Dubai
• Non-Objection Certificate (NOC) from the local municipality of Dubai

Few permits might also be required depending upon applicable circumstances:

• Ramadan Permit
• Liquor permit
• Pork Permit
• Delivery Permit 

Fitting plans for different types of restaurant businesses in Dubai 

If you’re planning on setting up a food business in Dubai as a restaurant, kitchen, or cafeteria, there are a few floors plan and fitting requirements that you need to fulfill and take care of. Click here to find the details.

Cost of opening a restaurant in Dubai 

Finances are a huge part of any business setup procedure so it’s important that you have a good about it before taking the leap. Depending upon the type of restaurant business in Dubai you are planning for, the cost of opening a restaurant in Dubai may generally vary from AED 2,00,000 to AED 3,50,000 which includes end-to-end running costs, such as company license, rental of space & permissions. 

How MBG can help 

MBG is one of the leading & dependable firms that you can find when it comes to business setup in Dubai. We have seasoned professionals with expertise in understanding, mapping your needs, and assisting you accordingly.

Moreover, all our services are customizable and our consultants can guide you throughout the entire process of business setup in Dubai, along with the services availed by you. We stay with you from the most initial processes to the very last until your office/restaurant is setup in Dubai.

For any queries related to business setup in Dubai or any other UAE emirate, click:-Business setup in UAE