Cafe Restaurant Business Setup in Dubai

Cafe Restaurant Business Setup in Dubai: For new entrepreneurs, trying to open up a Restaurant in the emirate of Dubai can be a tough task. It is essential to plan properly stepwise, since skipping even one particular step will mean, you might face issues with the authorities.

Given below are the steps to follow to start a restaurant in Dubai:

1st Step – Acquire Trading & Food licenses

The initial step is to obtain trading & food licenses from the concerned authorities. You need to approach Food & Safety Dept to obtain food license and DED (Dept. of Economic Development) for trade license. Expenses involved may range from AED 10,000 – AED 12,000. Also visit DTCM (Dept of Tourism & Commerce Mktg).

2nd Step – Location selection

The next crucial step involves choosing the top location in Dubai. You need to first determine if you would like to operate in any of the freezones or from mainland area. To set up a restaurant in mainland area (local sponsor support will be essential to start the business here), there will be essential DED authority approval. You can also have the choice to trade in mainland area. However, the sponsor is likely to hold about 51% of shares, while the remaining 49% is held by the owner.

However, if the plan is to establish restaurant at any of the Dubai freezones, then corresponding freezone authority is to provide the necessary consent. At freezone areas, you can hold 100% of shares. Additionally, you won’t need the support of a local sponsor.However, your trading area is likely to have restrictions.

On selection of the most appropriate area, the next aspect to consider is selection of the perfect locality. For instance, if you plan to serve Pakistani or Indian cuisine, you must actively target the right customer base that prefers ordering such cuisines. To obtain better insight into few of the well known local areas, it is essential to seek proper business consultation or expert advice in Dubai.

3rd Step – Drafting business plan

Setting up a professionally run restaurant business plan will require considering essential factors such as target marketing, SWOT analysis, preparing contingency plans to be ready for uncertainties, prepare financial plan, research, market survey, break-even analysis, cash flow projections, etc. Every individual factor is likely to contribute towards your business growth.

4th Step – Cost Estimation & Expenditure

Before setting up the business, you must actively create a feasible financial plan to track your expenditures accurately. What will be the cost of this restaurant type? How much the staff and equipment pieces cost? What is the cost involved to obtain license? Trying to estimate all types of expenditures and investments to be made in the restaurant business can be a real challenge.