Dubai has been a melting pot for food, truly holding a thriving restaurant market that caters to locals and tourists worldwide. Due to its international reputation in tourism, luxury, and business, the food and beverage industry has become one of the most lucrative markets in the region.
From fine dining and Michelin-starred restaurants to small street food eateries, everything is available in Dubai. These developments present fantastic opportunities for aspiring restaurateurs who want to open their restaurants. If you are one of them, you must understand the costs and requirements of obtaining a restaurant license in Dubai. This guide is all about steps, costs, and creative restaurant ideas that can help make your dream a reality.
Step-by-Step Guide to Getting a Restaurant License in Dubai
1. Choose the Right Business Structure
The first step in getting a restaurant license in Dubai is choosing the jurisdiction and the legal business structure that fits your business goals. There are two main options:
- Mainland License: With this license, a restaurant can be operated from anywhere in Dubai which gives the flexibility in terms of available commercial space or within the UAE.
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Free Zone License: If the selected jurisdiction is a free zone, 100% foreign ownership is possible, but the premises should be within the free zone limits, investor cannot rent a place outside of the free zone.
2. Obtain Initial Approval and Trade Name
Once the business structure is selected, apply for initial approval from the Dubai Department of Economy and Development (DET). This government authority approves your business activity as permitted under local laws. Also, select a unique trade name for your restaurant and reserve it with DET. The trade name must be according to the DET naming criteria. This business license is subject to Dubai Municipality rules and regulation, DM holds a right to regulate it, and its divisions such as Food Control Department, Department of Drainage and Irrigation etc.
Costs Involved in Setting Up a Restaurant in Dubai
While planning for a restaurant venture, it is essential to consider the various costs that you will incur in setting it up. The fees can vary depending on the type of restaurant, size, and location; however, the following are significant costs to consider:
- License Fee: To operate a restaurant legally in Dubai, a trade license is required.
- Initial Approval and Trade Name Fees: This includes the initial approvals and the trade name registration.
- Location Rent and Fit-out Costs: The rent varies depending on your restaurant’s size and where the location will be. Interior fit-out costs, including kitchen equipment and interior design, are a major cost to consider as well.
- Approval from Dubai Municipality Food Safety Department: The Dubai Municipality Food Safety Department inspects the restaurant and provides approval.
- Other Licenses: Depending on your business, you would be considered for an alcohol permit or permit for delivery service.
Licensing Requirements to Open a Restaurant
1. Food Control Department Approval
The Dubai Municipality’s Food Safety Department carries out an inspection and provides approval before it opens its doors. This includes checking of the below:
- The kitchen design complies with the food safety guidelines.
- Adequate ventilation and proper waste disposal.
- The restaurant is free from pests, and there is available clean water.
2. Licensing and Acquiring Additional Permits
The next step is to proceed with the application to get a license for the final operation of the restaurant. Consider other permits related to your business model: an alcohol license in case you want to sell alcohol or a shisha permit, also known as a hookah bar permit.
Dubai Theme Restaurant Ideas
The restaurant business has become more competitive in Dubai, and one must cultivate creativity and innovation to attract customers. The following are some novel restaurant concepts that have the potential to cut through the noise of your city’s food scene:
1. Desert Oasis Dining
This could be inspired by the UAE’s desert heritage. It would be a tent-style venue with fire pits and Bedouin-inspired decorations that offer an authentic Emirati dining experience. Local delicacies such as camel meat, lamb, and traditional sweets, among others, would be served under the stars in a desert theme.
2. Sustainable Farm-to-Table Restaurant
With a rising global focus on sustainability, opening a farm-to-table restaurant with organic and locally sourced ingredients may just attract eco-conscious diners. Use greenery in the decor and recycled materials to drive your eco-friendly message home.
3. Technology-Driven Dining
Imagine a food-slinging robot waitstaff, holographic art, or perhaps ordering your meal via touch-screen tables or an app. This can become the talk of the town in Dubai. Considering how advanced Dubai is in technology, this concept could attract locals and tourists who are tech-savvy and looking for a different kind of dining experience.
4. Underwater-themed Restaurant
Add fish tanks, blue lighting, and a seafood-heavy menu to transform your dining space into an underwater world for an immersive experience.
Marketing and Launching Your Restaurant
After finalising your restaurant licensing, it is time to focus more on marketing and launching your restaurant. Below are a few tips:
1. Leverage Social Media
Social media platforms like Instagram and Facebook are vital aspects of Dubai restaurant marketing. Display fine dining with high-resolution images, videos, and promotional offers to attract diners to your establishment. Invite local bloggers and social media influencers to events to promote your restaurant.
2. Create a Website and Enable Online Orders
Along with the ever-growing food delivery service, it is essential that your website is accessible and allows for online ordering. Include your menu, contact information, and customer reviews on it. You can also team up with food delivery applications like Noon, Zomato, or Deliveroo to let more people know you exist.
3. Promote Offers and Loyalty Programs
Attract new customers by offering them discounts, happy hour deals, or meal specials. You can also create a loyalty scheme that may attract frequent diners with possible discounts and dishes off the menu.
4. IP or Brand Registration
While trademark registration is not strictly required for a restaurant license, it is highly recommended to protect your brand name and logo. Trademark registration can prevent others from using similar or identical marks that could confuse consumers. By registering your brand or Intellectual Property, you can safeguard your business identity and reduce the risk of infringement.
Conclusion
Setting up a restaurant in Dubai can be rewarding, but it is crucial to ensure everything is ideally in place. From getting the proper licenses to selecting the theme and efficient ways of marketing your brand, this journey involves a lot of crucial planning and execution. With Dubai’s growing food and beverage industry, the right approach can easily make one stand out.
Be it at the initial planning stage or ready to roll, Gatestone Group will guide you through every step with professional advice on everything from setting up your business to post-incorporation compliance. Book a free consultation with the business consultant experts at Gatestone Group via email at [email protected] or call +971 4 450 1023 or +971 52 410 0849.
FAQs
It usually takes 2 to 4 weeks to get licensed to open a restaurant in Dubai, subject to further approvals from the Dubai Municipality and DET.
