Opening Up A Restaurant In Dubai

Restaurant License in Dubai

 

Dubai is one of the most preferred tourist destinations for people around the world. The government plays a vital role in the far-reaching success of Dubai, a city that is full of resorts, marvelous buildings, eye-catching sceneries, and hospitality. 

The food & restaurant sector has witnessed a remarkable amount of growth in Dubai and Abu Dhabi. Foodies from different places of the world Asia, Europe, Australia, and America have contributed to the success of the restaurant business in Dubai.

But before opening a restaurant in Dubai, you need to follow a code of conduct and need to acquire some information.

How to open a restaurant in Dubai?

In order to start this business you need to plan each and every step carefully because skipping one step might get you into trouble with the authorities. The steps are as follows:

1: Acquiring Licenses

Firstly, you need to take food and trading licenses from the authorities. For the food license, you need to approach the Department of Food and Safety, whereas the trade license can be obtained from the Department of Economic Development (DED) and the Department of Tourism and Commerce Marketing (DTCM).

2: Location Selection

Second, select the best location in Dubai. It's whether you decide mainland or free zone area.

To begin in the mainland approval of the DED authorities is necessary. The mainland area might give you the option to trade, but the sponsor will hold 51% of your shares, and the remaining 49% shall be with the owner.

If you want to consider free zone area then the consent of the corresponding free zone authority should be obtained. Free zone areas will allow you to hold 100% of your shares and might not require a local sponsor but might restrict your area for trade.

After you have decided the location you need to target the right customers as per your business for example, Pakistanis for a desi cuisine, Chinese people for the Chinese cuisine and so on. So, in order to get the insight of some of the famous local areas, you need to have some expert advice or business consultation in Dubai.

3: Draft A Business Plan

A proper restaurant business plan needs to include all the necessary factors like SWOT analysis, target marketing, preparing a financial plan, preparing a contingency plan for uncertainties, market survey, research, your cash flow projections, break-even analysis, etc.

4: Estimating Cost & Expenditure

Proper financial plan needs to be ready before starting up. Because you need to know how much will this type of restaurant cost? What will be the cost of staffing and pieces of equipment? How much will the license acquire cost? Estimating all the investment and expenditure is a difficult task.

Other than that, one needs to consider costs like:

• - Local sponsor fee - approximately AED10,000/year
• - A trade license fee for DED - approximately AED10,000 to AED 12,000

• - Labor and immigration registration up to AED8,000
• - Rent of the restaurant premises - AED60,000 and above (varies by location)

Architectural Requirements 

• - The kitchen must have an area of at least 300 to 380 square feet (if there is a tandoor in the kitchen), or 40% of the total area of the restaurant
• - There should be a good ventilation facility, and the chimney should 2 meters higher than the nearest building
• - Walls, floor, and roof should be washable, non-absorbent and fireproof

• - There should a basin for washing the utensils, a separate basin for cleaning the vegetables, and a separate one for meat
• - Storage facility for all types of food items is a must
• - The drainage pipe should be at a distance of at least 2 inches from the wall

Documents Required 

The 3 main documents required to be submitted to the authorities are:

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

Other than these, one can always opt for other permits like:

• - Ramadan permit
• - Liquor permit

• - Pork permit
• - Delivery permit

All the aforementioned documents are required for every old and new restaurant business in Dubai to run its activities without any interference or shutting of business by the authorities.

To conclude, the food industry is always a profitable business so, if you are willing to set up a business in this industry, contact us to initiate the first step in setting up the same.