For Setting up business in UAE, you don’t need to be a resident, but having a presence in Dubai can offer certain advantages and facilitate the process. Understand the complete process of starting a restaurant in Dubai. Dubai is the premier location for business setup. The city is not only popular with tourists from all over the world, but it also has over 150+ different nationalities living there. Not to mention, the city has one of the Middle East’s fastest expanding economies. As a result, it is the best place in the UAE to open a restaurant. The process of beginning this business in a free zone is simple and quick, nevertheless.

Best Locations to Setting up business in UAE for restaurants

Choosing the right location is crucial for the success of any dining establishment:-

1. Downtown Dubai:

Home to iconic landmarks such as the Burj Khalifa and Dubai Mall, Downtown Dubai is a bustling hub that attracts locals and tourists alike. The area boasts a diverse mix of residential, commercial, and tourist activity, making it an ideal location for a restaurant. Whether it’s a trendy café, fine dining establishment, or casual eatery, Downtown Dubai offers a captive audience of food enthusiasts looking for memorable dining experiences.

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2. Dubai Marina:

Dubai Marina, a vibrant waterfront district, offers a breathtaking view of the city’s skyline and a bustling atmosphere. This cosmopolitan area is home to numerous luxury hotels, residential towers, and entertainment venues, making it a popular choice for residents and tourists seeking a trendy dining destination. A restaurant in Dubai Marina can cater to diverse tastes and preferences, ranging from upscale dining experiences to casual waterfront eateries.

3. Jumeirah:

Jumeirah is a renowned neighborhood known for its beautiful beaches and upscale residential communities. With its mix of locals and expatriates, this area offers a prime location for a restaurant targeting a sophisticated clientele. Restaurants in Jumeirah can benefit from the stunning views, access to beachgoers, and a clientele looking for high-quality dining options.

4. DIFC (Dubai International Financial Centre):

As the leading financial hub in the Middle East, DIFC attracts a large number of professionals and business travelers. The area offers an ideal environment for a restaurant targeting the corporate crowd or hosting business lunches and dinners. DIFC’s reputation for upscale dining and its proximity to luxury hotels and offices make it an attractive location for culinary entrepreneurs.

5. Dubai Media City:

With a bustling community of professionals, including journalists, filmmakers, and designers, this area provides a unique opportunity for restaurants to cater to a niche audience. From trendy cafes to concept-driven eateries, Dubai Media City can be an excellent choice for those looking to tap into the city’s creative energy.

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6. Al Barsha:

Located close to popular attractions like Mall of the Emirates and Ski Dubai, Al Barsha is a thriving residential and commercial area. It attracts a mix of locals, expatriates, and tourists, making it an excellent location for a restaurant seeking a diverse customer base. With its accessibility, lively atmosphere, and potential for footfall, Al Barsha offers ample opportunities for culinary entrepreneurs.

The Restaurant Industry in Dubai from an Investment Perspective

It would be difficult to estimate the range of investments required without consulting current customers who effectively operate cafeterias, restaurants, and small-scale eateries. Opening a restaurant in Dubai can be a lucrative investment opportunity for business people throughout the world because the legal processes to do so don’t take more than a week.

Steps for Setting up business in UAE of Restaurants and Dine outs

You can use this list to open the dining establishment of your desires in luxurious Dubai.

1. Costs for starting a Restaurant:

Since starting a restaurant takes a substantial investment, it’s a good idea to make a list of all the costs involved in order to avoid squandering money on unneeded items. Knowing roughly how much money they will need to spend in advance is crucial for any restaurant owner. Before opening a restaurant, some costs to take into account are:

  • License
  • Rent or the cost of purchasing a new home
  • Permissions
  • Staff training program
  • Software for daily operations
  • Insurance
  • Working capital
  • Cost of setting up the restaurant – equipment, tables, chairs, etc.

These are some of the upfront costs you’ll have to consider when operating a restaurant.

2. Getting Licensed to Open A Restaurant In Dubai

Before you choose to reserve a time slot in your preferred location, you must first acquire all the licenses and permits required to operate a restaurant. For Setting up business in UAE of restaurant in Dubai, you mostly need to obtain two types of licenses.

Trade License:

Obtaining a Trade License for your restaurant in Dubai is essential, and it is issued by the Department of Tourism and Commerce Marketing. The license must clearly indicate the specific type of restaurant you intend to operate. The cost of the trade license can range from AED 30,000 to AED 40,000, which may vary based on factors such as the nature and scope of your restaurant.

Food License:

In Dubai, the Food Safety Department is in charge of issuing the food license. You must obtain this license after receiving your trade license in order to have your restaurant’s development plan approved. Contact the Department of Tourism and Commerce Marketing for information on how to start a restaurant in Dubai and to obtain a food trading license in Dubai. The type of restaurant you plan to open in Dubai must be mentioned in the pre-approval application from your end.

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3. Making a concept and USP decision for your Restaurant:

You must have an original idea for your restaurant before you begin, something that will make you stand out from the crowd. This will provide you an advantage in Dubai’s fiercely competitive restaurant market. Your restaurant’s concept encompasses the way you serve customers, the cuisine you offer, and the setting of your establishment. Identifying your restaurant’s USP is another important item to think about. It will assist draw a lot of guests if you have an unusual theme or present a cutting-edge menu item. Try something new, then, if it hasn’t been done earlier!

4. Selection of a Location:

Due to the more than 200 different nationalities that call Dubai home, restaurant owners have a wider range of potential customers to serve, depending on the type of eatery they operate. Make sure to do some research on a potential location, including its demographics, to determine whether it has enough foot traffic to support your restaurant operation.

5. Designing the Menu:

You must choose the menu’s items and curate it before you may open the doors of your restaurant. To cover your Prime Cost, which consists of the Cost of Goods Sold and the Labour Costs, you must also properly construct your menu, choose the suitable menu items, and price them.

6. Layout Design for a Restaurant:

The layout of your restaurant will have a big impact on how it runs on a daily basis, so creating one might be a little overwhelming but is a crucial step when beginning a restaurant. It will help your restaurant run more smoothly by giving you plenty of room to move around. It will also help you make a good first impression on your customers because everything is done quickly.

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Make smart use of the area you have and arrange the components carefully. To ensure maximum use of the space without impeding everyday operations, it is crucial to analyze and arrange everything from the tables to the kitchen equipment—properly.

7. Choosing the Best Technology:

The significance of technology cannot be understated in today’s technologically advanced world. When opening a restaurant, it is essential to spend money on a reliable POS system that will ultimately make your job easier. With a POS system, you might carry out a number of regular duties, like the ones listed below.

  • Billing
  • Pushing Orders
  • Stock & Inventory Management
  • Get Accurate Reports
  • Marketing

All of these features will assist you in effectively managing the daily operations at your restaurant, which is crucial if you want to succeed in Dubai’s food and beverage sector.

8. Hiring Skilled Staff

It is important to hire the greatest personnel because competent employees are a definite indicator of a reputable restaurant and the best service. Since there is a lot of turnovers in the Gulf region’s restaurant industry, it is crucial to hire staff who will stick around and support the expansion of your restaurant.

You should think about the various roles you want to fill before you start hiring.

  • Senior & junior chef
  • Prepares food
  • Manager
  • Servers
  • If you want to provide alcohol, bartenders.
  • Host
  • Cleaning workers

Before opening your restaurant’s doors, you will need to fill a few basic positions that are required of all restaurants’ workers. You can begin by hiring the bare minimum of staff members and add more as and when necessary.

The steps of getting a residence visa

You require a residency visa for yourself in order to Setting up business in UAE. Upon receiving it, you may then move forward with the application process for the visas of your dependents, which may include family members, employees, and domestic helpers. However, keep in mind that the quantity of visas you are eligible to apply for also relies on the size of your restaurant, the amount of capital you have invested, and the sort of license you are seeking.

Here are the steps for acquiring a resident visa in brief:

  • Register for E-Channel services to purchase mainland visas.
  • Apply for an employment visa or entrance permission. It is a brief visa, only good for 60 days. You’ll need to modify your status after receiving this visa. Your admission permit will then be activated.
  • Attend a medical fitness test that involves a chest X-ray, a blood test for any infectious diseases, and other necessary procedures. In most cases, the outcome takes three days.
  • You should get your Emirates ID card.
  • Stamping a residency visa. At this point, you receive a real visa sticker for your passport. The stamping process typically takes 15 days. After successfully obtaining a visa, you can apply for members of your family, dependents, or even employees.

After the 30- to 40-day visa application process is complete, you can live and work legally in the Emirate. You can be guided through the process by a business setup adviser to prevent any difficulties or mistakes.

What are the Dos & Don’ts for Opening a Restaurant in Dubai?

Dos:

  • To begin the first stage with good business feasibility and planning to have a thorough understanding of your market and future projections on ROIs.
  • Create a pricing strategy based on competitive analysis to confirm the costs and expenses.
  • Make sure to create a thorough marketing strategy and employ the right web channels to increase sales by a larger margin.
  • Do a SWOT analysis of the competition nearby and potential plans with the assistance of experts.
  • To obtain a NOC and necessary authorization from the appropriate authorities.

Don’ts:

  • If you have never opened a restaurant before, do not attempt to do so in Dubai or anywhere else. It is best to seek guidance or work with knowledgeable, seasoned professionals.
  • Be reasonable and avoid overpricing your menu items.
  • Don’t create a menu based on your personal preferences; instead, cater to client preferences.

Conclusion: –

In conclusion, Due to the huge number of tourists and busy inhabitants who don’t have time to cook for themselves or who want to sample various cuisines from different nations- Restaurant Setting up business in UAE are among the most profitable enterprises to establish. Dubai is also an international metropolis where people are always eager to try new foods, which helps restaurants attract and keep customers every day.