How To Start A Restaurant Business?

Want to start a restaurant business in Dubai? Although COVID-19 impacted restaurants and the food industry, the industry is now coming out from its slowdown. Dubai has a huge number of tourists and has a diverse local population. Dubai’s food and hospitality industry are among the world’s largest. According to estimates, the total revenue in the UAE from food and beverages establishments was around USD 7.2 billion. And it is set to grow in the coming years.

Food and beverages have always been lucrative business in the Middle East. Dubai is known for providing mouth-watering global cuisines. With people willing to explore newer options and the spending capacity of an average citizen being higher than anywhere else globally. Dubai is one of the top destinations for opening a restaurant business.

But starting a restaurant business in Dubai requires proper registrations and licenses. If you wish to start a restaurant business in Dubai. Read on to know the process and understand how Shuraa’s expert consultant can help you navigate the entire process.

Steps To Start A Restaurant Business In Dubai

Before you start serving customers, restaurant owners need to meet all the requirements to start a restaurant business in Dubai. Any lapses in this process can incur heavy fines and termination of the license, which is why it requires careful planning and knowledge of the procedure. To start a restaurant business in Dubai, you need to follow these simple steps:

1. Apply For A Food & Trading License

The first step to start a restaurant business in Dubai is to apply for the authorities’ food and trading license. This license can be acquired from the Department of Food and Safety, while the trade license is obtained from the Department of Economic Development (DED).

Both the licenses will have a particular cost and will require you to provide all the details requested by the authorities.

The food and trading license applies to the following establishments:

• Restaurants, Cafes, hotels and bars
• Bakeries
• Butcheries
• Food factories and warehouses
• Catering services
• Packaging material manufacturers
• Foodservice operations operating in schools and hospitals
• Supermarket, departmental stores, grocery markets, food carts and kiosks

2. Finalize The Location

Next, you need to finalize the location of your restaurant in Dubai. This is important, depending on the location, you will need to comply with the procedures of the authorities. The mainland area or the Dubai Free Zones will have different financial requirements and benefits, and you need to ensure you have proper knowledge of these to set up your restaurant.

Since the location also needs to consider factors like the cuisine type, target customers and other details, you need to plan on which location you are looking for.

The mainland area requires a local sponsor who will hold 51% shares, while the Dubai Free Zone will allow 100% shares, which is also a factor to consider when deciding a place to start a restaurant or hotel in Dubai.

3. Create A Business Plan

Now that you have completed the basic steps, you need to provide a professional business plan for your restaurant. This requires specific considerations like expected cash flow, financials, restaurant blueprint and other vital details. Every single factor will contribute to whether you will get the license, so these need to be carefully considered.

4. Estimated Costs & Expenditure

Finally, you will also need to provide a financial plan for all the costs and expenditures that your restaurant will incur. This will include the cost of running the restaurant, the staffing requirements and the pay for each staff, rent and other expenditures.

The estimations will need to be revised to apply for renewing the license. . The local sponsor fee (if any), labour and immigration registration, rent and trade license fees are included in the expenditures.

Documents Required To Start A Restaurant Business In Dubai

In addition to the requirements mentioned above, restaurant owners need to provide documents to provide information on the food and safety requirements they are following and the other important details. These are the main documents to be submitted to the authorities –

• Food and safety license
• Trading license
• Non-Objection Certificate (NOC) from the local municipality in Dubai
• Permits for special requests like Ramadan permit, Pork permit, delivery permit, liquor permit
• Blueprints of the restaurant having information on the ventilation systems, entry and exits, sanitation spaces, location of washing areas, location of equipment and kitchen, storage and food processing space, and other details
• Document of approval from the food safety department with approval on the layout, the food standards and other aspects of the restaurant

How Can A Restaurant Business License Advisor Help You?

Starting a restaurant business in Dubai may seem daunting, but the revenue opportunity makes it extremely lucrative. Thus, restaurants have to comply with all the rules. Also be open to sharing information with the authorities as required. This may seem tough for someone starting fresh, but an expert consultant can make your life a lot easier.

To start a restaurant business in Dubai, it requires time and investment, and the actual cost of the license could depend a lot on the factors we’ve mentioned above. It is essential to be compliant with the regulations and consider the procedures to run smoothly without any hiccups.

For more details on the costs of starting a restaurant in Dubai, you can connect with the Shuraa Restaurant Setup consultant today. Our experts can help you navigate the rules and be by your side throughout the process, making it a lot easier and quicker.