14 Aug How to Open a Restaurant in Dubai?
With one of the fastest-growing economies, flourishing infrastructure, and beautiful ambiance, Dubai stands to be one of the top tourist destinations in the UAE. To have a taste of Dubai’s world-class cuisine and to savor its delicacies, travelers from around the world gather here. Such potential attracts business people who wish to open a restaurant in Dubai.
If you also have a love for food and are wondering about how to open a restaurant business in Dubai, then let’s get to know about the process of starting a restaurant business in Dubai.
How to Open a Restaurant Business in Dubai?
If you wish to start a restaurant business in Dubai, then you need to plan each step with care before investing in it. Here is a brief explanation of how to get started with your restaurant in Dubai.
1. Food Code and Licensing
Food Code
To get a restaurant license in Dubai, you have to follow the ‘Food Code’ rules supervised by the Food Control Department of Dubai. From food production to its consumption, the food code ensures food safety and hygiene at every step. Restaurants, hotels, Bakeries, food catering services, and food factories need to follow the food code established by Dubai Municipality.
Trade License
The Department of Tourism and Commerce administers the trading license for all business activities in Dubai. You can receive a Restaurant license in Dubai by registering your restaurant business under the legal boundaries stated by DED.
Food License
You can get your food license by signing an agreement with the Food Safety Department in Dubai. Purchasing a food license will charge you approx AED10,000 to AED12,000 in Dubai.
Liquor License
If you are planning to provide alcohol and liquor services in your restaurant then you will require a liquor license.
2. Location and Ambiance
Setting up a fancy location and eye-catching ambiance is another important factor in developing plans for your restaurant in Dubai. The free zone area and the Mainland area are the two available options in Dubai. Free zone areas will permit you to have a hundred percent of your shares without involving any local sponsor.
Approval from DED authorities is important if you wish to open your restaurant in the mainland area. Besides that, the sponsor will get fifty-one percent of your shares in mainland area business.
3. Cost of Opening a Restaurant Business in Dubai
The expenses involved to start a restaurant business in Dubai may differ depending upon the location, area utilized, employee count, government procedure, creation of menus, maintenance, and other investments. The approximate value can be found at the end of this blog.
How to Get a Restaurant License in Dubai
Mainly two types of licenses are necessary if you want to start a restaurant business in Dubai.
- Trade license
- Food license
Steps to Obtain a Trade License
- Establish the nature of your business (commercial, professional, or industrial).
- State the expected corporate behavior of your company.
- Declare the legal status of your business in the UAE.
- Register a trading name for your company.
- Fill in the application form in the DED department.
- State your corporate office and fill the registration forms.
- Prepare all the necessary documents.
- Submit every requested information to the DED for final approval.
Steps to Obtain a Food License.
- You need to have your trade license approved before requesting a food license.
- The blueprint of your ambiance needs to be represented to the authorities.
- You, being the owner of your restaurant, need to get the approval of the Food Code from the Food Control Department of Dubai.
- It is necessary for you to accommodate the area of your restaurant, Food storage areas, washing areas, chimney, and separate basin in your blueprint.
- Visit the DED department with all the above-mentioned information to get registered for your food license.
What are the Documents Required for Starting a Restaurant business in Dubai
Here is a list of documents required if you wish to start a restaurant business in Dubai and get a restaurant license in Dubai.
- Trading license.
- Food license.
- Non-Objection Certificate (NOC) issued by the municipality of Dubai.
- Typed BR/1 form.
- Ejari Registration Certificate.
- Photocopy of the issued trade license.
- Passport size photo.
- Confirmation report of P.O box.
- Memorandum of Association (MOA).
- DED letter approving your restaurant name.
- Tenancy agreement form.
- UAE ID Number
- Proof of payment.
What are the Architectural Rules for Opening a Restaurant Business in Dubai
Every restaurant has to adhere to some important architectural rules to operate in Dubai. A few important rules are given below:
- The kitchen area has to be at least three hundred square feet or should be forty percent of the total area of the restaurant.
- It is necessary to have proper ventilation and an exhaust system in the restaurant.
- The chimney should be higher than the closest building(two-meter minimum).
- All the walls in the restaurant should be washable and a hundred percent fireproof. The same applies to the roof and floor.
- You must provide a separate basin(with both hot and cold water options) for washing the dishes, veggies, fruits, and one separate washing space for meat.
- Dry, chilled, and frozen food items require different storage facilities.
- Make sure that the drainage pipe is a minimum of two inches away from the walls.
What is the Cost of Opening a Restaurant in Dubai
Last but not least, handling your finances plays an important role in the smooth sailing of your business. Not all restaurants are the same, thus the expenses of handling a restaurant are unique as well. Depending on the type of restaurant, the cost of opening a restaurant in Dubai varies from AED 200,000 to AED 350,000 which includes end-to-end running costs, such as company license, rental of space & permissions.
1. Full-Service Restaurants
Being one of the most famous choices of restaurants, a full-service restaurant demands huge dining spaces and large storing and cooking spaces. The cost of handling such a full-service restaurant is between AED 300,000 to more than AED 500,000.
2. Delivery Restaurant
A much more cost-efficient option is a delivery restaurant. Growing at a high pace these delivery restaurants aka dark restaurants have no need for dining space. Just set up your kitchen and start rolling out dishes. The cost of handling these restaurants falls between AED 100,000 to AED 160,000.
3. The Hole-in-the-wall Restaurant
The pandemic has affected all our lives and hence this new way of handling restaurants came into existence. A relatively small space(average size of 1,000 square feet) to operate and an average capital of AED 50,000 to AED 80,000 will be sufficient to initiate small-scale production and delivery.
Seek Professional Help to Open Restaurant in Dubai
Now that you are familiar with the process of starting a restaurant business in Dubai, you can start planning for your dream restaurant in Dubai. Though the process to create a restaurant business in Dubai is simple, it is better to take help from experienced professionals.
The business consultants at Shuraa Business Setup can provide you with proper guidance and help you lay out a plan for your restaurant. You simply have to reach out to us and let us know your requirements and we will take care of the rest.