Approximately USD 3 trillion is the value of the global foodservice market, according to recent data. The market shows no signs of slowing down. This trend is also evident in the UAE. Approximately USD 3.3 billion is estimated to be the market value of restaurants in the Emirates. Fast food restaurants contribute about USD 1.5 billion of this, followed by casual dining, worth around USD 880m, and fine dining, worth around USD 840m.
However, a large market isn’t the only factor that makes the UAE’s restaurant sector so successful. Every week, we dine out 6.75 times in the Emirates, higher than the average in the US, which is 4.2 times.
It’s the perfect time to start a business in this huge market if you’re thinking of opening a restaurant or a cafeteria in Dubai.
Establishment of a restaurant in Dubai
In Dubai, opening an eatery or a cafeteria is generally the same process.
You will need two separate licenses. The first is a business license. Either the Dubai Department of Economic Development (DED) or an open zone can provide this service. Getting the food control department to approve the restaurant’s plans is the next step.
After completing this phase, you can apply for a food license. The license can be obtained from the Dubai Municipality Food Safety Department.
Provide the department with the original of your license to trade, as well as a restaurant floor plan which includes the entrances and exits of your restaurant, the food processing areas and the food storage areas, all ventilation windows, and all the food processing equipment and washing equipment.
The Food Code must be followed in order to keep your license valid. There are similar laws governing food safety in a variety of other countries , and they basically establish certain standards for food preparation, production, and hygiene.
In addition to food preparation and storage, the codes address ventilation, cleaning facilities, and more. Any establishment that wishes to serve or prepare food is affected by the code, including cafeterias, restaurants, hotels, and supermarkets.
The process of applying
In order to apply for a food license, there are a few additional steps, but the application procedure for a trade license is pretty standard.
Before submitting your first application, you should describe your business’s activities. In the food sector, this means that you will operate eateries, cafes, food courts, or food services, etc. It is also important to specify the type of food you plan to sell and the way you intend to market it – takeout, eat-in, or delivery.
In order to avoid delays in the licensing process, it’s crucial to include these details in your application. Additionally, you must take care not to engage in trading activities that are not listed on your license. The setting up of the company is an important process, so it is a idea to consult an expert in this regard.
As soon as you’ve decided on your trading strategy, it’s time to choose a name for your company. There are a few additional regulations to be aware of in the UAE that may not apply everywhere. Your company name may only contain your personal name in its entirety, according to one of them. John Smith Foods is an example rather than J Smith Foods or Smith Foods.
Aside from that, it’s mostly a common good. It’s not a good idea to use the name of a famous organization, such as NASA or MI5. You should also avoid using profanity or offensive language in your business name. Make sure the name you plan to use is registered. In addition, an expert in company formation can assist you with this process.
Now is the time to submit your application for a trade license. If you intend to operate a business in the mainland of Dubai, you will have to apply for a license. The first license must be obtained through the Dubai Economic Department. A free zone can be established by applying directly to the appropriate managing authority. As a minimum requirement in both cases, the following documents should be submitted:
* Completed application form
A copy of the passport of the prospective owner or owners
Two passports with colored photos
Opening a cafeteria or restaurant in Dubai
The figures at the beginning of this article indicate that Dubai’s food and beverage industry represents a tremendous opportunity for entrepreneurs. In addition to the increasing numbers of tourists and visa regulations being relaxed, this potential will only grow as international immigration continues to increase.
1. Things to consider before opening a restaurant Opening a restaurant requires a significant investment, so before you open your restaurant, be sure to record all of your expenses so you do not spend money on unnecessary items or overspend.
All restaurant owners should know an estimate of the amount they’ll be required to pay in advance. Here are a few expenses to consider before opening a restaurant:
* License
* Software to manage everyday operation
* Insurance
* Working capital
* Cost of renting or purchasing a brand new house
* Permissions
* Staff training program
* Cost of installing the restaurant – tables, chairs, equipment, etc.
These are only a few of the first investments you’ll need to be aware of when starting an eatery.
2. Opening a restaurant in Dubai: Getting a license
In order to reserve a time slot at your preferred location, you must obtain all the permits required in order to open the restaurant.
The licenses for operating restaurants in Dubai must be obtained in two different ways.
*A license to trade
A food license is required
(i) Trade License
Dubai Department of Tourism and Commerce Marketing is responsible for granting trade licenses. If you intend to operate a restaurant, your business type must be specified in the permit.
It may cost you between AED30,000 and AED40,000 to get a trade license, depending on factors such as the type of restaurant you own and manage.
How to get for the Trade License for opening a restaurant in Dubai are:
* Identify the category of the business professional, whether it is commercial or industrial
(Maximum of 10 actions per license) * Indicate the corporate activities in which the company is involved.
Create a legal name for your business in the United Arab Emirates
The trade name of your business should be selected and signed
Submit an application for initial approval
* Leasing a corporate office is possible
* Prepare all the necessary documents
* Submit another request to DED for final approval
(ii) Food License
Dubai’s Food Safety Department is responsible for granting food licenses. As soon as you have acquired your Trade License, you need to obtain this license to approve the design of your restaurant.
To obtain a Food License, the following documents must be submitted to the Department of Food Safety. Food License.
A copy of the license issued by the trade or a primary authorization from the authority that issued the license.
(ii) Designing the interior of the restaurant
(iii) Designing the interior of the premises (if applicable). A blueprint is basically what you will use to design your restaurant. Included in the blueprint for your restaurant should be:
* The entrance and exit routes
* Space for the processing of food
* Storage space for food
The ventilation system and the window
Where to locate the equipment required for food preparation
Dishwashers and other equipment to support them.
Restaurants must also obtain the following permits in addition to those mentioned above:
* Release of licences for food consignments
* Pork permit for handling and serving products from the pork industry
* Vehicle permit for transporting food
If you plan on selling liquor in your restaurant, you will need a liquor license.
3. Establishing The Concept And The USP Of Your Restaurant
In order to distinguish yourself from your competitors when opening a restaurant, it is important to come up with an original idea within your mind. Being innovative in the highly competitive restaurant industry in Dubai will give you an edge.
A restaurant’s concept includes the manner in which your place will be served, the menu you will serve, and the atmosphere of your dining establishment.
You should also determine your restaurant’s unique selling point. If you have a unique design or introduce a new food item on the menu, this can attract more customers. Therefore, you should try something that hasn’t been tried before!
4. Choosing A Location
More than two hundred nationalities live in Dubai. As a result, restaurant owners can serve different types of patrons based on the type of establishment they manage. Make sure you do your homework about the restaurant and its demographics before freezing it. The location should also have enough customers to support the restaurant’s business.
The location of your restaurant determines whether your establishment will be a success or a failure with Emiratis and tourists alike.
When choosing the place to stay, the following factors should be taken into account:
Establishing your establishment in a prominent location is essential. Make sure your restaurant receives a high number of customers and that the sign is easily visible.
* Accessibility – Having your restaurant located in an accessible area can make all the difference in the world. Restaurant patrons are more likely to visit your establishment if they can access it quickly and easily.
Customer Base: Knowing your intended audience will enable you to determine the most appropriate location for your target audience.
– Affordability: If rent is high, you may have difficulties making a profit from specific foods. Find out whether your lease is likely to increase in line with the previous trend by checking the research.
Shipping costs may exceed the original quantity of raw ingredients due to proximity to suppliers. Finding out where you can get the raw materials you need to cook and how far you are from your source is important.
Dubai’s best locations for opening a business are:
* Jumeirah
* Emirates Hills
* Dubai Creek
* Mall of the Emirates
* Al Quoz
It is possible to choose a location according to the type of restaurant you want to open. As an example, Jumeirah Beach Road would be the ideal place to open a luxury dining establishment since it is a prestigious area.
5. Designing The Menu
The menu is the most important thing you need to decide before you open your restaurant. Moreover, you must design your menu correctly and also select and price items on the menu in a way that covers your primary costs, which include the cost of the goods sold as well as the cost of labor.
Your menu should also be designed in a way that your customers are more likely to buy the most profitable products. This can be achieved by placing the high-profit items in areas that attract the most attention and by writing attractive menu descriptions.
At first, you do not need a fully designed menu or fully fleshed out menus. As you learn which foods are popular and which ones aren’t, you can update your menu accordingly.
6. Creating the layout of a restaurant
Even though designing a layout for your restaurant may seem daunting, it is an important step in starting a restaurant. How your restaurant is laid out can have a big impact on its day-to-day operations. As well as providing plenty of space for your restaurant’s daily activities, it will also aid in leaving a lasting impression on your customers as each operation will be completed quickly.
It is important to be aware of how you will arrange your layout to accomplish the goals set in your menu as well as your theme.
Make good use of the space and arrange all the components in a sensible manner. From tables to kitchen equipment, it is important to arrange everything in a way that maximizes space without compromising the functionality.
Your dining room can be planned and decorated once you have your layout in place.
7. Investing in the right technologies
Today’s technologically advanced world makes it impossible to ignore technology’s value. Purchasing a POS system that can simplify the process for you over the long run is essential when opening an establishment.
As a restaurant owner, you’re expected to oversee various departments on site all the time, but this is physically demanding and, in many ways, impossible. Technology is crucial when you want to monitor the everyday operation.
It is possible to carry out a variety of day-to-day tasks with a POS system, such as those listed below.
With the right POS system, you will be able to manage billing easily. Restaurant billing is one of the most crucial tasks, so you can rely completely on the POS system to prevent errors. Additionally, it enables you to determine the preferred method of payment and create offers accordingly.
Pushing orders: You can send orders directly to the kitchen with POS systems. Having orders sent directly to the kitchen keeps communication clear and delays at a minimum.
* Inventory and Control of Inventory: Manage your inventory levels effectively by using a point-of-sale system. You can determine the quantity of raw materials required or available. If you are just starting out in the restaurant business, then an inventory management system can help you manage your capital effectively and minimize any losses.
Get accurate reports Get real-time reports and review them on the go with a mobile POS solution that eliminates the need to be present everywhere.
In addition to managing restaurant operations, POS systems can be used to communicate with your customers and assist in marketing your business through sending emails or SMS messages. Additionally, POS systems can be used to develop loyalty programs.
With these features, you will be able to manage events at your restaurant efficiently and effectively, which is crucial to establishing your name in Dubai’s culinary and beverage sector.
8. Recruiting qualified employees
The reputation of the staff is a sure sign of a quality restaurant that provides the best possible service. It is therefore important to recruit the best employees. In the Gulf region, restaurants have a high turnover rate, so it is imperative to find people who will stay with your restaurant and help it grow. Make it successful.
It is very important to consider the various tasks for which you will need to hire individuals before you begin hiring.
* Sous chef
Preparation of the food
Management
In addition, servers
* Bartenders (if alcohol will be served)
Instance Host
Staff that cleans
In order for your restaurant to open, you’ll need to meet a few basic requirements for employees. Begin with a minimum number of employees, and then gradually add more when the need arises.
It might seem like a difficult task, but if done correctly, opening a restaurant can be rewarding. For start-up entrepreneurs, Dubai offers a fantastic platform and plenty of opportunities. Gulf food business is growing, and trends in foodservice continue to evolve, so there is always an opportunity for a great new restaurant.
Moreover, the process of opening a restaurant is fairly straightforward, though it can be a little specific. Especially when it comes to the licensing of your food licence, you will probably need prior knowledge about the licensing process. The application process for a trade license is easy when the application is correct and error-free when it is submitted
