Factors to keep in Mind before opening a Restaurant in Dubai

by Zaara 19, Dec 2019

One of the thriving businesses in Dubai that have been spiking up every year is the restaurant business. During the past few years, the company has set a new ground for itself that has been attracting millions of foreign investors to come forward and invest. Ranging from a minimal investment to a higher side, an investor has got all possible flexibility to consider. According to research by Euromonitor International, there will be a count of more than 19,000 food outlets in Dubai by the end of 2019.

This widens the opportunity level for the individuals passionate about food and want to set up their business in the UAE. Are you one among them? Yes? Then, this guide will help you to understand the essentials to transform your dream into reality. Keep reading!

1.Acquire the Required Business License

The first and foremost task is to obtain the required business licenses that will allow you to perform the business operations legally. In Dubai, every business needs to hold a special license depending upon the business activities carried out. When it comes to the restaurant business, you need to obtain the Restaurant License from the Food and Safety Department. Additionally, you need to get a Trade License from the Department of Economic Development and the Department of Tourism and Commerce Marketing.

While proceeding with this, you need to ensure that you have all the required essentials that need to be present in front of the Government Authorities. It might cost you AED 10,000 to 12,000 to obtain the same. Once you receive it, you are free to cook your signature dishes and start your business in the UAE.

2.Strategic Zone and Location

Now, imagine that you have set up a restaurant, but then there is no visitor. Sounds odd, right? Well, this can be the scenario if you don’t consider a proper location. When it is about the restaurant business, it is all about people. You need to select a strategic position to grab the right audience and flourish your business.

Another consideration that you need to look at is the dedicated zones that Dubai provides. Multiple zones like Mainland, Free Zones and Offshore wherein each one of them offers various facilities. You need to identify the relevant zone for your business and choose one wisely.

3.Do the Research

Once you have initiated the business operations, you need to understand the market, the competitors and the target audience. Each competitor available in the market will be having a unique marketing strategy, and knowing such insights turns out to be fruitful for your business.

At the end of it, you will develop unique ideas on multiple grounds like marketing or branding, servicing your customers, the exterior and interior structure of your restaurant etc. Implementing unique insights will help you grab more customers, and once you can position your brand in their mind, your business is bound to grow.

Also, you need to identify the suppliers you will be dealing with in terms of acquiring the raw materials from your business. Having a clear idea at the initial stage will help you to avoid unnecessary chaos while performing the operations.

4.Outline a Business Plan

After implementing the research process, make sure you draft an outline. You must consider all the crucial points while preparing one. Some of the areas that turn out to be a mandate are:

  • Set your goals according to a specific duration
  • Set a deadline to achieve the business break-even
  • Best-utilization of the revenue generated at each point to accelerate your business
  • Create an emergency fund that will help you to survive in the extreme case
  • Build strategies to protect your business and brand

5.Cost Consideration

You will need a hefty investment if you want to setup a restaurant in Dubai, UAE. Therefore before moving forward, jot down the expenses to avoid wasting money on unnecessary things or going overboard and spending more than required. For every restaurant owner, it is essential to have an approximate idea of the expenses they will have to bear beforehand. Some of the costs to consider before opening a restaurant are:

  • License
  • Rent or expense of buying a new property
  • Permissions
  • Staff training programme
  • Software for daily operations
  • Insurance
  • Working capital
  • Cost of setting up the restaurant – equipment, tables, chairs, etc.

6.Determining the Theme and USP of the Restaurant

When opening a restaurant in Dubai, you need to have a unique concept in your mind, something that would help you stand out from your competitors. This will give you an upper-hand in Dubai’s competitive restaurant industry. Your restaurant concept includes the service style of your restaurant, the food you serve, and the ambiance of your restaurant.

Another thing you need to consider is determining your restaurant’s USP. If you have an unusual theme or introduce an innovative menu item, it will help attract a lot of customers. Therefore, experiment with what has never been done before!

7.Hiring Qualified Staff

Having good employees is a clear indication of a good restaurant and the best service; therefore it is essential to hire the best staff. The restaurant industry in the Gulf region has a high turnover rate which makes it very important to hire people who would stay and help your restaurant business grow.

Before you start hiring you need to consider various roles you wish to hire people for.

  • Sous chef
  • Prep cooks
  • Manager
  • Servers
  • Bartenders (if you wish to serve alcohol)
  • Host
  • Cleaning staff

Once you follow the essentials mentioned above, you will be better positioned to run your business smoothly. By now, you must have got an idea that starting a restaurant business in Dubai turns out to be a tedious job, but that shouldn’t stop you from implementing it.

Moreover, the forthcoming Expo 2020, projected to attract 25 million visitors, is expected to pave multiple growth opportunities for the restaurant business. So, you can see that once you are done with the initial stage, you have a high ground of options where you can set your foot.

How can we help?

Now, to carry out the set-up process in a hassle-free way, it is recommended to take the help of business consultants who will guide and help you carry out the incorporation activities. Commitbiz Consultants stands as one of the best business consultants dedicated to providing customized solutions to esteemed clients. Our business experts are well-versed with the legal formalities and can help you to carry out the activities in a hassle-free way. If you hold any query or doubt, do contact us today-we’d be glad to assist.