Restaurant Business In Dubai

 Do you wish to start a Restaurant in Dubai?

Dubai and Restaurants: 

Dubai is climbing the "most visited tourist destination" ladder quickly.  In 2019, just before pandemic, Dubai had more than 16 million visitors.  By 2025, the Dubai government plans to increase this number to 25 million a year.  Dubai will reach the number one place for the most visited country in the world, overtaking Bangkok.  So what has that got to do with restaurants? More number of visitors brings more business for cafes, restaurants, and hotels.  There are almost 25,000 restaurants in Dubai and this business sees its new siblings every day.  There are many iconic restaurants in Dubai, to mention one, the highest restaurant from the ground "The At.mosphere" is in Burj Khalifa.  Dubai hosts variety of nationals and the scope of business is still huge.  Having a business-friendly government, business owners can take advantage of all the benefits one could get through investments.  Events and exhibitions around the year provides opportunities in terms of keeping your brand abuzz. Like, Gulfood Exhibition is up next month.  It increases value and credibility.  It also provides as a platform to exhibit to a select customers that have no idea or knowledge about your product, and also you get to know more about your own industry.

Let me give you few ideas on how to run your restaurant business successfully and the cost involved to start the same.

Few Ways to run a restaurant successfully?

There is hot🍵potential for restaurant business. Dubai Statistics Center (DSC) released a data that showed that restaurants produce services worth nearly 20 billion dirhams, making it one of the most lucrative businesses. There are various factors that is involved to run a successful cafe or a restaurant. Let me list out a few below;

1.  Location of the Restaurant:  I know a cafe in Sheik Zayed Road (perfect location), recently opened, amidst business towers and residence.  You get good Tea and snacks.  Anytime between 8 in the morning till at least 7 in the evening its crowded, reasonably priced and I am sure he is making good money.  Before working on anything, finding the perfect location is so important, as this remains permanent.  Solutions can be found for any other problem during the course of your business, but if the location is poor, the business had to shutdown and before it sinks it is going to take a huge piece of your investment.  Some business owners would have been lucky to start their business from a challenging location to be grown into a destination point.  Luck does not favor all the time and not to all the people.  Better to have a rational thinking while investing.

2.  Concept and Menu:  It is important to stick to a concept, whether it is going to be fast food or family restaurant, food truck, or a sports bar or fine dining.  The concept should attract people and the menu  should give a reason for them to come back.  As it is important to understand your location and fix a concept leaning to it.

3. Staff:  Staffs are invariably pillar for any business.  The business owner and staffs should share a single vision of giving the first level of service to their customers and making them feel satisfied in all aspects.  Enough support should be provided from the business owner to every staff in order to fulfil every need of the customer in terms of quality, taste, quantity, customer service, pricing, overall experience etc.  You need loyal staffs for any successful business.  You do not get loyal staffs while you hire, they need to transform eventually. 

4. Effective Management of Cash: Proper operating and accounting systems should be followed to understand the cash flow and every person should be held responsible for the profit as well as the loss of each particular day.  Technology should be brought in to monitor the cash follow, stock maintenance, reorders, receivables, expenditure, and profit.  Perfect accounting will give the owner the plan for expansion.

5. Others: To make it short, I want to bring in rest other important points into this heading. i. Interiors, when a good look, feel, and comfort is offered to a customer, he is most likely to have a good experience which will make him come back to the place. ii. As a business owner he needs to take advantage of the current technology to advertise and create a unique identity.  Marketing, especially through social media one can attract the niche customers.  iii. Apart from looking at only profits or day today activities, a business owner should also be compliant with the local rules and regulation of the region, which will help him to be at peace at all times.

Cost to Start Cafe/Restaurant in Dubai:

Food Stuff Supply

License Type: Commercial.

Activity Description: Includes supplying, by contracts, fresh or canned foodstuff to other entities for direct consumption or for industrial use.

This activity allows you to resell food packages that can be contracted from either a central kitchen, other restaurants or from catering companies to be given as a packed food to individuals, bulk quantities to corporates or to industries for immediate consumption.  This activity does not allow you to prepare own foods and sell.  No cooking or dining is allowed on the business place.  The third party where the food stuff is being obtained should have a proper contract with your company.  The food stuff can be sold on their own brand.  This activity has Dubai Municipality approval, once the business is open and the contract is made between the third party vendor and your company, Dubai municipality will have an inspection to check the food quality.

Cost: License cost AED 12,000 to 14,000.

Total Cost including the memorandum, name registration and initial approval: Approx AED 17,000.

Cafe/Coffee Shops

License Type:  Professional

Activity Description:  Includes cafeterias that sell snacks, juices and beverages to the public.

This activity needs a sponsor and this activity requires Dubai Municipality approval.

Cost:  License cost AED 17,000 to 20,000

Sponsorship Fees: Approximately between AED 5000 to AED 7000.

Total Cost including the memorandum, name registration, sponsorship and initial approval: Approx AED 30,000.

Restaurants

License Type: Professional

Activity Description:  Includes restaurants equipped with the suitable installations to prepare and serve

food and snacks inside, as well as various beverages for immediate consumption by the public, such firms are allowed to sell the activity-related materials in non-commercial quantities. This activity needs a sponsor and this activity requires Dubai Municipality approval.

Cost: License cost AED 17,000 to 20,000.

Sponsorship Fees:  Approximately between AED 5000 to AED 7000.

Total Cost including the memorandum, name registration, sponsorship and initial approval: Approx AED 30,000. 

To keep a note, shop tenancy charges and service charge of a PRO is not added in the cost.  It depends on the location and size of the business setup.

Conclusion:

It is good to invest in Dubai in the year 2022 till 2025, one of the most powerful Government is inviting people from across the globe to come, invest, and live in harmony in their land.  Business owners and entrepreneurs can take pride in being a part of this wonderful nation.

If you wish to invest or expand in any business in Dubai and would like to know more about it, you can call/whatsapp me on +971 561 905 983.  You can share it with your friends who has investment ideas.

This is Pious Signing Off.