Opening a Restaurant in Dubai
The fastest-growing city in the world, Dubai is a land of dunes, deserts, and skyscrapers that is witnessing a soaring diaspora of people across the globe. Dubai is transpiring as a focal point for companies and business setups, the reason being the massive support from the government organizations in the expansion of Dubai as the most loved tourist destination and business hub.
The vast economy and increasing GDP enable different business setup in Dubai, one such being the Restaurants. As a report prepared by DED, the number of restaurants and cafes opened in Dubai has reached 12,500 by 2020, therefore making it one of the thriving and bubbling businesses in, Dubai. A lot of foreign investors thus consider opening a restaurant in Dubai to be a good idea taking into account the benefits of internet retailing of restaurant services. We should keep in mind the following steps for opening a restaurant:
Conceptualizing your restaurant:
The idea or notion of the restaurant you want to open is always a beginning point in the journey of starting a restaurant. Personal choices and preferences affect the concept of a restaurant. Dubai is a city that has tremendous options in cafes, fine dining, pubs, floating restaurants, buffets, multi-store restaurants, etc. to offer. The energy, the ambiance, and design also play a crucial role.
Designating a Location for your Restaurant:
Deciding on situating a restaurant or any other business in Dubai is a long row to hoe, which is why we analyze a concept before the location. A potential customer base, the rent of the desired location, reachability for the customers, availability of raw materials and suppliers, power parities of the area are some deciding factors. Dubai is one of the most populous cities that has many desirable tourist spots, upmarket shopping locations, and high-end office workspaces. Places like Palm Jumeirah, Burj man Center, Dubai International Financial Center has some of the finest restaurants and cafes.
The understanding of the Mainland and Free Zone areas in Dubai is another parameter. The former providing 49% ownership to a foreign investor and 51% to the local investor, while the latter providing 100 % ownership to a foreign investor but only having a permit to operate in free zone areas.
Covering Cost and License:
A business setup always includes costs and procedures. Here are some of the expenses which we have to bear while opening a restaurant:
- Rent or Lease
- Cost of Labor
- Sponsor fee
- License Procurement Fee
- Capital Investment
- Advanced Technology
License procurement is one of the substantial tasks in the process of establishing restaurants in Dubai. Some of the licenses are:
- Trade License: The Department of Economic Development issues the trade license for restaurants. In the application, you should mention the appropriate nature of the enterprise and submit all the apposite documents to the Department Of Economic Development (DED) for final approval.
- Food License: Food Safety department provides a food license. The license should include the engineering layout of the restaurant. The following particulars are part of the layout:
- Space allocated for cleaning, cooking, washing, storage areas, handwashing, etc.
- All entry and exit points along with windows and ventilating systems
- The placement of all food-related equipment.
Designing the Layout and the Food Code:
Dubai like every country has its specifications regarding the interiors, food safety, and restaurant layout. Moreover, one has to obtain NOC from Dubai Municipality and food safety concerned authorities.
Food Code is a set of guidelines that are jotted down by the Government of Dubai to safeguard the interest of the consumers which should be maintained and followed by every food establishment. Also, it provides model requirements for restaurants to help them attain a higher standard of food safety for adopting good practices.
For example, A restaurant must have adequate space for safe food processing and customer seating to avoid congestion.
They should have adequate storage spaces for kitchen essentials and equipment.
Pricing and Menu:
Pricing of the Menu should be done bearing in mind some measures which comprise of costs, expenses, gross profit margin, rent, etc., also taking into account the purchasing power of the consumers. Along with the pricing, the contents of a Food menu also affect the growth and success of any restaurant. Dubai has a very diverse population of natives and migrants and the taste and cuisine also differ from place to place. It is very essential to inculcate their very essence in the creation of a restaurant menu to meet customer demands.
Marketing and Other Factors:
The final facet of opening a restaurant in any country includes marketing. Selling and marketing go hand in hand as we need to communicate to the customers, the features that distinguish us from the rest of the competitors of the place. Dubai is a technology-driven society, so we can always rely on various mediums to reach out to customers like print, broadcasting, or the most recent social media.
Staffing: Hiring qualified and trained staff benefits the restaurant as it will help in understanding the customer need better and also provide them quality services.
Food Safety: In the Food Code the safety is given priority and thus various rules and regulations are set for the same. And therefore, a Person-in-charge is appointed to oversee all the activities to ensure food safety in the food establishment.
The above steps are a brief of the required process one has to go through for opening a restaurant in Dubai. The maintenance of the restaurant and proper follow up is required for the success of any restaurant.
Dubai is one of the most magnificent cities and has seen much development and company formations in the last two decades, providing many industrialists and investors an opportunity to grow and flourish. Thus, it gives a good platform for budding investors to open a restaurant in Dubai.