Dubai is a center for international trade and now attracting visitors to restaurant business setup in Dubai. One of the booming sectors is the food and beverage industry. According to a survey by Euromonitor International, Dubai has more than 6,000 food and beverage outlets. And it is anticipated that this figure will be increased by the end of 2019 to include 19,000 new food locations. The reason for this is not only the development of the tourist business in the nation but also the significant amount of money spent on the food business. The opportunities offered by the government of the UAE are immense.
The following are just a few factors contributing to Dubai being home to such a thriving restaurant business.
High levels of spending by residents:
The average monthly expenditure of Emirati citizens on food and drinks is the highest in the Middle Eastern region. It is more than AED 841 per person. Recently, business owners have been shifting their focus from restaurants located in large halls to smaller restaurants. This is happening not only because it is more cost-effective but also because it is more in line with the shifting preferences of the local population. People now prefer eating at restaurants in their neighborhood rather than going to large halls outside their residential area.
Even among those who frequent restaurant malls, 87 percent also eat at one of the mall’s restaurants at least once a month. Because visitors are more likely to stay in hotels, restaurant businesses have a better chance of progressing. On the other hand, local populations are more likely to enjoy their food in different restaurants.
A large number of people living abroad and tourists from other countries:
However, the local Emirati population is not the only factor that influences the growth possibilities of the restaurant business. Because Dubai offers among the world’s most significant tourism opportunities, you will get high levels of security and political stability.
These tourists from other countries would also want to use their time in the UAE by dining at different restaurants. This indicates that these restaurants can potentially entice inhabitants of other countries as well. You only need to provide luxurious, delicious, and one-of-a-kind cuisine options. Restaurant owners can increase the number of local and international customers they serve by providing a selection of dishes from various regions and cultures.
In addition to its native population, Dubai is also home to a sizeable expatriate community. The Middle East, Asia, Africa, and Europe are all represented among these expats’ home nations. All these individuals have certain cuisine products that they like eating, and restaurants that cater to the preferences of these expatriates have a better chance of expanding their business base and generating more growth.
Incentives provided by UAE:
In Dubai, international investors are encouraged to open a restaurant either in the free zone or on the mainland. Free zones provide total freedom from tax and duty and one hundred percent ownership. Nevertheless, your restaurant must be situated inside the free zones, and you must adhere to the free zone’s laws.
The Department of Food and Safety is the place to go if you want your food business license in Dubai. However, there are other departments (such as economic development and tourism) where you may apply for a trade license. Additionally, the government of the UAE offers additional permits for certain kinds of food. It includes a Ramadan license, a delivery license, a pork license, a liquor license, and so on.
Importance of Location:
You should put your restaurant in tourist destinations if you want it to be successful. If you choose the incorrect location for your business, you might destroy it. Even if it’s in a company that encourages interaction like the UAE. For this reason, it is vital for investors to first learn about and then choose the appropriate location for building their restaurant. You will find that there is space available in the locations currently in use, and you will be able to build your restaurant in one of these locations.
You can also book a spot for your restaurant in a tourist destination still under development. This is not only cost-effective, but you can also choose the location you want to live in among those offered in these places.
You should also be aware of the priorities of the locals in the area where you plan to locate your restaurant. For example, if most people in the area around your restaurant are Indian, your restaurant needs to provide vegetarian options. You should have Chinese foods on your menu if most of your customers are Chinese residents, local people, and foreigners who like meat dishes.
Requirements for Opening a Restaurant in Dubai
1. Trade License
To operate legally, eateries in Dubai must get a trade license from the Dubai Economic Development Department (DED). The restaurant of Economic Development (DED) will be responsible for issuing business licenses to operate restaurants and coffee shops. Because running a restaurant is considered a professional activity, non-UAE citizens can own the entire restaurant business on the mainland. In contrast, UAE nationals (the sponsor) will only be regarded as legal service agents. This contrasts with the situation in an LLC, in which shareholders hold a 51% stake.
2. Food License
A business’s proprietors need to seek a food license from the Department of Food Safety after obtaining commercial consent to establish a restaurant from the Department of Economic Development (DED). The clearance from the Department is mandatory for the restaurant entity’s ability to demonstrate compliance with the requirements outlined in the Food Code.
3. Follow The Food Code
Before giving clearance to new restaurant companies, Dubai requires stricter compliance with higher food safety requirements. The Dubai Municipality has developed a Food Code, a collection of standards for food facilities such as restaurants to follow to ensure that they comply with the general food laws. The Food Code requires restaurants to implement safe work procedures and raise their level of food hygiene to the highest possible level. The Food Code’s purpose is to defend consumers’ interests by ensuring the safety of their lives and health.
4. Construction Permit from the Food Control Department
When constructing a new building or renovating an existing one, the restaurant proprietors must provide the Food Control Department with a floor plan that complies with the laws. It is important to remember that the proprietors of the business should not make significant changes to the current structure of the building that might have an impact on the layout without first obtaining approval from the Food Control Department.
Submission of Layout
Before construction, remodeling, or reconstruction, the applicant must provide the Food Control Department with an approved copy of the restaurant’s floor plan. The structure needs to have specifics such as,
- Space and areas designated for cooking, cleaning, storing food, and sitting
- Sanitary installations, open areas, receptacles for waste, and storage places
- Panes of glass and various types of ventilation systems
- The configuration of the apparatus
- Specifics of both the entrance and the exit
- Utensils and utensil holders, as well as hand washing and dishwashing facilities
2. Requirements for Sites, Location
In business, to eliminate the possibility of contamination, the proprietors of the new restaurants must choose sites that are separated from waste disposal facilities and incompatible processing facilities by a sufficient distance. As a rule, one should maintain at least 30 meters of separation from any potential sources of contamination.
3. Special Requirements and Permits
In addition to the permissions listed above, restaurants must get specialized licenses to fulfill specific prerequisites. It is necessary to get a vehicle license to carry food goods and a food truck license to run a business out of a food truck. To handle pork and provide it to customers, one needs special permission.
An entrepreneur is permitted for free zone business setup in Dubai. But the free zone allows the opening of only a branch of an existing restaurant.
Consult Business Setup Consultants in Dubai
For businesspeople interested in making food-related investments, Dubai is a paradisiacal business to do so. For a restaurant business setup in Dubai, one must first get several permissions before one can begin operations. This is because the government of Dubai has instituted stricter regulations to protect its residents and visitors. When considering an investment in a food-related business in Dubai, you must be familiar with the appropriate requirements and get a business license in Dubai. When a situation like this arises, the presence of a reputable business setup service provider becomes essential for entrepreneurs.