How to Open a Restaurant in Dubai - Step By Step
Dubai is quickly becoming one the most popular tourist destinations globally. The city averages 7 million tourists every year, and this figure increases dramatically with major events that the city regularly hosts. For example, 14.36 Million tourists visited in 2022 alone thanks to Expo 2020.
With this yearly rise in tourism, high average disposable income among residents, and a multi-cultural taste for all cuisines, this is an ideal location for food businesses and cafes.
In this article, we will break down STEP BY STEP the things to consider when opening a restaurant, cafe, or any food business in Dubai.
1. Consider the costs of your food business
Opening a physical restaurant or cafe is a big investment, and it is important as a potential business owner to have a rough estimate of the costs. These are the costs to consider and budget for:
1. Food license
2. Renting a commercial shop space or buying a building
3. Interior fit-out such as chairs, tables, counters etc.
4. Kitchen fit-out and equipment
5. Software for inventory management, payrolls, POS management etc.
6. Staff salaries and training costs
7. Insurance
8. Working capital
Due to the high setup cost of a physical restaurant or cafe, you can alternatively consider renting a commercial kitchen space with us at Express Kitchens, and test your food startup with a delivery-only brand. This allows you to validate your idea and build a name in the market at a fraction of the cost, and with access to a fully operational ecosystem built to support you and your venture.
2. Decide on a Name, Concept, and Menu for your food business
Dubai is truly a foodie haven- there are food lovers of every cuisine and budget, and just as many food business catering to this demand. This means that your business needs to be unique and bring a fresh take on food to stay ahead of the competition. Some questions you may ask yourself to find your own ‘secret sauce’ are:
- Can I introduce a new food concept not available yet in Dubai?
- Can I bring a fresh take and recipe on an existing popular food concept?
- Can I differentiate myself in the market with lower prices?
- Can I differentiate myself in the market with a unique ambience, service style, or food lifestyle?
These questions will help you decide on your Unique Selling Proposition (USP) and formulate the perfect menu.
3. Select a location to serve
Depending on the restaurant concept, you will then select a location to tap into. Dubai has a wide selection of localities to choose from, so you will need to research and ensure that your food business concept will appeal to the locality’s demographics. This is important because each locality has its own mini-subculture and spending habits. For example, some famous location clusters within Dubai you can consider to cater to are:
- Emirates Hills, Springs, and Meadows
- Business Bay and Dubai Downtown
- Motor City, Arjan, and Arabian Ranches
- Bur Dubai and Karama
Instead of a physical location, you can also choose one of the locations of Express Kitchens, which can allow you to tap into multiple markets at lower costs.
4. Get Trade and Food Licenses
Now that you have your restaurant concept nailed down, you can make this legal! You need a Trade License and a Food License to operate a food business in Dubai.
Trade License
You will need to apply for a Trade License from Dubai’s Department of Tourism and Commerce Marketing. The rates differ depending on the tier of license.
Food License
You will apply for a Food License from The Food Safety Department. This license requires a blueprint of your restaurant layout and design to ensure that it complies with standard regulations.
5. Hire Staff and Set Up Operations
You are now ready to set your operations.
This requires hiring and training the staff such as chefs, waiters, cashiers, and other administration support staff if needed. You will then need to set up operations such as:
- Food Inventory Management: selecting the best suppliers for produce and setting a delivery system with them. This may also require vehicle permits for food transport.
- POS System: You will need a system for payments and finance management of the company. This includes setting up a business bank account, investing in a payment POS system, and investing in other tech and softwares to track monthly expenses and profits.
- Reporting: This is a vital part of any business to ensure that you keep track of how the business is performing, and tracking monthly performance to help analyze and improve efforts.
- Marketing: Finally, Marketing such as SMS, billboards, digital ads, social media posts all help raise awareness of your business and drive footfall into your restaurant or cafe. This is also a great way to build long-term relationships with customers by offering them special discounts and freebies to bring more friends and family to you.
Congratulations - you are now ready for business!
Conclusion
While Dubai is an ideal location for food businesses, it is important to keep all the setup costs and steps in mind in order to build a thriving food business.
We at Express Kitchens are an excellent option for food entrepreneurs and startups to consider, as renting a commercial kitchen space with us is fast, easy, and affordable. Get in touch with us today and find out more about how we can help you.
