Dubai is a melting pot of cultures, with a diverse population of over 200 nationalities, making it an exciting opportunity for entrepreneurs to enter the food and beverage industry. The city’s booming tourism, vibrant economy, and strong demand for new dining experiences make starting a restaurant or cafeteria in Dubai a highly lucrative venture. Whether you’re aiming to bring unique flavors to this bustling city or open a cozy space for locals and tourists, this guide by Smart Business Creation will help you navigate the steps required to open a restaurant or cafeteria in Dubai.
Why Open a Restaurant or Cafeteria in Dubai?
Dubai’s food scene is rapidly evolving, making it a prime location for aspiring restaurateurs. The city attracts millions of tourists annually, and its residents—drawn from every continent—are known for their love of good food. Here are some key reasons why Dubai is an ideal place to open a restaurant or cafeteria:
- Diverse Consumer Base: Dubai’s population includes people from Asia, Europe, the Americas, and the Middle East, all with varying food preferences. This diversity presents a vast opportunity to cater to different tastes.
- Booming Tourism Industry: With millions of tourists visiting Dubai each year, there is a constant demand for new and unique dining experiences.
- Supportive Government Policies: The UAE government is committed to fostering economic growth, making it easier for entrepreneurs to start their own businesses with various incentives for food and beverage ventures.
- Thriving Food Culture: Dubai is emerging as a global culinary hotspot, making it an attractive destination for food enthusiasts and investors.
Step-by-Step Guide to Opening a Restaurant or Cafeteria in Dubai
1. Reserve the Trade Name of Your Business
The first step to opening a restaurant or cafeteria in Dubai is choosing and reserving a trade name. The trade name must be unique, must not contain any offensive language, and must comply with the guidelines set by Dubai’s Department of Economic Development (DED). Once you have chosen an appropriate name, apply for name approval from the DED.
2. Select a Local Sponsor (If Applicable)
If you are a foreign investor, you may need to appoint a local sponsor who will own 51% of the business. Alternatively, you can choose a Dubai Free Zone to establish 100% foreign ownership of your restaurant.
3. Get Pre-Approval from DED
After reserving your trade name, you need to obtain initial approval from the DED to start your restaurant business. This approval certifies that your business idea complies with Dubai’s regulations.
4. Rent and Design Your Restaurant Space
You need to rent a space for your restaurant or cafeteria that meets the guidelines set by the Food and Safety Department. The restaurant’s interior design must align with health and safety standards. Make sure to obtain an Ejari (tenancy agreement) for the rented space.
5. Sign the MOA/LSA Agreement
You will need to sign a Memorandum of Association (MOA) or Local Service Agent (LSA) agreement with your local sponsor, which must be notarized at the DED.
6. Obtain Food Safety and Municipality Approvals
To ensure your restaurant complies with food safety regulations, you will need approvals from the Dubai Municipality’s Food Safety Department and Drainage Department. These approvals include verification that the restaurant’s layout, kitchen equipment, and ventilation meet all the necessary health and safety requirements.
7. Obtain an EHS Certificate from Dubai Civil Defense
It is mandatory to get an Environment, Health, and Safety (EHS) certificate from the Dubai Civil Defense to certify that your restaurant follows all fire safety standards.
8. Get the Trade and Food License
Once all the approvals are in place, apply for the final trade license from the DED and a food license from the Food Safety Department. Both licenses are essential to legally operate your restaurant or cafeteria in Dubai. The cost of a trade license is approximately AED 18,260, excluding rental and furnishing costs.
9. Hire a Fit-Out Company for Interior Design
To attract customers, your restaurant must have an inviting ambiance. Hire a professional fit-out company to design your restaurant’s interior, ensuring it meets Dubai Municipality’s requirements for health and safety.
10. Obtain Visas for Your Employees
You will need to apply for visas for yourself and your employees under your restaurant’s name. Visas are essential to hiring staff to help run your restaurant or cafeteria smoothly.
11. Start Your Operations
Once you have all the necessary licenses and approvals, you can officially open your restaurant or cafeteria. Make sure to comply with Dubai’s food code, which aims to ensure the highest quality and safety standards for all food establishments.
Cost Breakdown for Opening a Restaurant in Dubai
The overall cost of opening a restaurant or cafeteria in Dubai depends on various factors such as location, restaurant type, and services provided. Below is a cost breakdown:
| Particulars | Fee Tenure | Amount in AED |
|---|---|---|
| Initial Approval Fees | One Time | 120 |
| Name Approval Fees | One Time | 620 |
| Tasheel Fees | One Time | 345 |
| Notary Verification Fees | One Time | 250 |
| MOA/LSA Notary Fees | One Time | 825 |
| License Fees Approximately | Annually | 10,000 |
| Immigration Card Fees | Annual | 750 |
| Stamp of the Company | One Time | 100 |
| Labor Card Fees | One Time | 1,000 |
| DM Approval Fees | Annually | NA |
| Investor Residence Visa Fees | 3 Years | 4,250 |
| Office or Shop Rent | Annual | As per lease |
| Total Estimated Cost | 18,260 |
Additional costs include:
- Premises Rent: Varies based on location
- Sponsorship Fees: For local sponsors
- Interior Design and Kitchen Equipment Costs
- Visa Expenses for Employees
Tips for Running a Successful Restaurant or Cafeteria in Dubai
- High-Quality Food and Service: Always prioritize high quality, both in the food you serve and the service you provide.
- Compliance with Food Codes: Adhere to Dubai’s food safety codes to maintain a clean and safe environment for your customers.
- Effective Marketing: Utilize digital marketing, social media, and local partnerships to attract both residents and tourists to your restaurant.
- Unique Concept: With a diverse food culture, having a unique concept or menu can help you stand out among the competition.
Partnering with Smart Business Creation
Opening a restaurant or cafeteria in Dubai requires adherence to numerous regulations and licenses. Smart Business Creation is here to simplify this process. We provide comprehensive support, including:
- Licensing Assistance: Navigating the licensing and approval process to ensure compliance.
- Location Selection: Assisting you in finding the ideal location for your restaurant to attract footfall.
- Fit-Out Services: Connecting you with professional interior designers to create an inviting ambiance.
- Employee Visa Assistance: Helping you obtain work visas for your employees to ensure a smooth start.
Launch Your Restaurant with Confidence
Dubai’s food and beverage industry is vibrant and growing, providing an incredible opportunity for visionary entrepreneurs. By following the proper licensing and setup procedures, you can open a successful restaurant or cafeteria in this thriving city. Let Smart Business Creation be your partner in making your culinary dream a reality.
Contact us today to learn more about starting your restaurant or cafeteria business in Dubai. Let’s make your mark in Dubai’s thriving culinary scene!
