As you might know, Dubai is a hotspot for tourists from all over the globe. In fact, Dubai welcomed 4.7 million visitors in just the first half of 2023, according to ‘Arabian Business’ insiders. Beyond its dazzling skyline, Dubai is a prime destination for those who love to indulge in the luxuries of the modern world.
For business owners, this means 4.7 million opportunities to make a mark.
If you play your cards right, you could see a remarkable boost in your yearly revenue. That’s why setting up a restaurant in Dubai, Abu Dhabi, or other parts of the UAE is such an enticing prospect.
But let’s face it, starting a restaurant isn’t easy. It involves a lot of planning, research, and tough decisions. We’ve been through it, and we understand how overwhelming it can be.
The good news is, you don’t have to go through the same struggles.
In the next 6 minutes, we’re going to share the 6 key steps—from picking a name to understanding the costs involved. With these vital tips, you’ll be well on your way to making your restaurant dream a reality!
Step 1: Choose a company name
The first step in launching your restaurant is choosing a name that stands out.
In Dubai, the rules are straightforward: your name must be unique, without any profanity or blasphemy. If you want to use your name, remember to include both your first and last name—no initials allowed!
For instance, Shake Shack is a name that has taken the burger scene by storm.
YOU KNOW WHY?
It perfectly captures the fun, casual vibe of enjoying a tasty shake and burger. Your restaurant could also create a buzz with the right name, so choose wisely!
Step 2: Pick a location
One of the most common misconceptions is that if the food is good, customers will automatically come.
But that’s NOT really the case!
Your location plays a critical role in your restaurant’s success. Even the best food won’t shine if it’s in the wrong spot. Tourist areas are prime real estate, thanks to high foot traffic, while shopping malls offer excellent visibility and access.
Consider setting up in one of Dubai’s free zones. These areas come with perks like no requirement for a UAE national shareholder, tax exemptions, and logistical support.
However, keep in mind that your business activities will be limited to that zone.
Step 3: Complete the application
Before you can get the licenses, you need to operate your restaurant in Dubai, there are a few important administrative tasks to handle.
Start by outlining your business activities. Will you run a restaurant, café, or something else? Be clear about the type of food you’ll serve and whether you plan to offer dine-in, take-away, or delivery options.
These details MATTER!
Missing information can cause delays in the license application process. Taking the time to get this right will set you up for your restaurant’s success.
Step 4: Obtain your trade license
If you’re looking to establish a food business in Dubai, securing the right licenses is essential before you can start trading.
You’ll need to apply for food licenses from the Food & Safety Department, and for your trade license, head over to the Department of Economic Development and the Department of Tourism and Commerce Marketing.
Keep in mind that depending on how you plan to operate your restaurant, you may need additional special licenses. For example, if you intend to serve alcohol, a liquor permit is required. If you’re planning on deliveries, you’ll need a delivery permit as well.
Importantly, stick to the activities outlined in your licenses. The authorities are quite strict about this, so it’s best to play by the rules.
Step 5: Complete the visa processes
Securing your visa is essential for living and working in Dubai. Start by contacting the immigration department to begin your application. If you’re setting up in a free zone, the residence visa forms are included in that process.
While the visa process can feel a bit complex, getting it sorted is vital for launching your restaurant successfully!
Step 6: Open a bank account
Opening a bank account is a crucial step in your restaurant journey. If you have a UAE-registered business, you can apply for a business account.
To get started, you’ll need a few essential documents, including a utility bill, your CV, personal bank statements from the last six months, and a solid business plan.
Keep in mind that banks in the UAE have specific eligibility criteria. Most will require you to maintain a minimum balance, and some may ask that your business also holds a savings or current account with them.
Costs to open a restaurant in Dubai
When it comes to launching a restaurant or café, the big question on everyone’s mind is:
What’s it going to cost?
In Dubai, expect to invest between AED 200,000 and AED 350,000 to get started. Keep in mind, though, that this figure can fluctuate based on various factors.
This estimate covers the essentials, including company licensing, rent, and permits. Since every restaurant has its own unique financial needs, careful planning is crucial for starting strong and ensuring you're set for the long haul.
