A restaurant in Dubai can be an immense asset if done right.
UAE nationals eat out an average of 6.75 times a week, significantly more than Americans, who are known for their love of restaurants. The Emirates’ booming tourism sector is also a factor, with Dubai seeing 5.1 million tourists in the first trimester of the year alone.
Opening a restaurant in Dubai may seem like a risky undertaking, but with careful planning at every stage, you can become the owner of a lucrative business for years to come.
These 11 questions can help you prepare for some of the most common hurdles faced by anyone opening a restaurant in Dubai.
What documents will I need when opening a restaurant in Dubai?
Every restaurant owner in Dubai is required to have these two documents before operating: a trade license and a food license.
We’ll discuss them in detail in this article later, but when applying, the trade license comes first before the food license. This is because the former is a general requirement for all kinds of businesses in the UAE, not just for restaurants.
How do I get a trade license?
This document is issued by the Dept. of Economic Development (DED) for restaurants that will be located within the Dubai mainland. For those who are looking at opening a store within one of the city’s many free zones, the trade license will be issued by the government authority managing that specific free zone.
Your first step is to write to the DED or the free zone management to get approval for your company and restaurant’s names, as well as initial approval for setting-up your business.
There are four kinds of trade licenses: commercial, professional, industrial, and tourism. For restaurants, you will need a commercial trade license.
Once you have received the go-signal, you’ll include the letters of approval and the following documents in submitting your request for a trade license:
- Copies of all shareholders’ passports
- Tenancy contract between you and the landlord of your restaurant’s location
How do I get a food license?
When applying for the second of your key documents, you will be required to submit copies of your trade license and restaurant layout, either to the Food Control Department of Dubai, or its counterpart in a free zone where you opt to open a location.
Your layout plans should specify the following features:
- Entry, exit points
- Area for food processing
- Area for food storage
- Windows and ventilation system
- Location of food equipment
- Location of dishwashers
What are some of the things food inspectors will be looking for?
- Proper ventilation: aside from ensuring kitchen staff do not suffocate, you should also ensure that smoke from the kitchen is ejected at a height of at least two meters higher than any adjacent buildings.
- Cleaning chemicals should be kept in a separate storeroom, and not with food items or even non-food items such as spare utensils, furniture, etc.
- A contract with a pest control company for regular maintenance of your premises.
What are the other documents I should have when opening a restaurant in Dubai?
The following are not necessary for securing a food license but are still crucial for your business:
- Liquor license for restaurants serving alcoholic beverages
- Vehicle permit for transporting food items
How do I get a liquor license?
The Dubai Police General Headquarters (DPGH) issues four kinds of liquor licenses, including the Type C license for serving alcohol within a restaurant, hotel, or club.
Unlike the previous requirements discussed in this article so far, those for a liquor license are simple. You only have to write to the DPGH along with the following information:
- Description of the premises where alcohol will be served (i.e., your restaurant)
- Description of your restaurant’s fire safety precautions
- Description of the separate storeroom for your liquor stock
- Cost of monthly stock of alcohol
The DPGH also has specific guidelines for any restaurant serving liquor, such as:
- Alcohol can only be served to customers that have ordered a full meal.
- Each customer can only be served in measures of a maximum of one fluid ounce of alcohol that isn’t beer or wine.
- All alcoholic drinks must be served in glasses, with the exception of wine.
How do I get a vehicle permit?
This document is issued by Emirates Transport and requires you to submit the following documents, as well as to submit the vehicle to be used for physical inspection:
- Copy of your restaurant’s trade license
- Vehicle ownership papers
What will inspectors be looking for in my vehicle?
- An unremovable sign with the words “Only Food” in both Arabic and English in a prominent part of the vehicle.
- In-vehicle thermometer to monitor the storage compartment’s temperature.
- Insulated refrigeration and air-conditioning equipment to prevent food contamination by oils and chemicals.
- Vehicle interior insulated with a waterproof and polished material.
- Vehicle interior walls, roof, and other surfaces made from non-absorbent and corrosion-resistant materials.
- Well-sealed doors to keep out air, dust, and insects.
How do I hire foreign nationals for my restaurant staff?
Foreign nationals compose around 90% of the UAE’s workforce. With most Emirati nationals preferring to work in the government, knowing how to hire foreign nationals is something Dubai business owners should be aware of.
There are two ways of recruiting members of your restaurant staff: direct recruitment, or through a professional employer organization (PEO). In the case of the former, it is your responsibility as the employer to process all of the documents needed by each prospective employee to work in the UAE.
What are the documents needed by foreign nationals to work in the UAE?
First, you will need a Visa Quota Approval from the Ministry of Labor (MOL). This is especially important if you are planning to open a location in a free zone because there are strict limits to the number of expat workers in those areas.
Once you get your Visa Quota Approval, you go back to the MOL to apply for your employee’s Labor Card. The Ministry encourages the prioritization of nationals for any job opening; they will approve your application if there are no citizens interested in the position.
If the Ministry approves your application, the prospective employee must then take a medical exam before his or her Labor Card is issued.
Your staff member will then receive the document at the airport upon their arrival.
What is the alternative to directly hiring restaurant staff from overseas?
Employing the services of a PEO is common practice among many businesses in the UAE. While it entails additional expenses, it saves restaurant owners having to hire their own recruiters or doing the actual recruitment themselves.
What kind of restaurant technology should I invest in?
Restaurant technology gives owners a tremendous boost by making their operations faster, more accurate, and generally more efficient. Certain processes are automated, enabling faster service, reducing errors, making customers happier, and ultimately leading to more profits.
Self-ordering kiosks are a great example, freeing up FOH staff for other tasks and enabling restaurant owners to have a leaner restaurant team.
Kitchen display systems (KDS) save your waitstaff time by sending orders directly from their tablets to the individual screens in each kitchen prep station. This also eliminates the errors of writing down orders on paper tickets.
Software that aggregates third party delivery apps such as Talabat, Zomato, and Deliveroo are also crucial now that more people are having their meals delivered than before. Orders are sent directly from the app to the KDS, reducing the risk of lost orders.
Point of sale (POS) systems are a must in any restaurant and those that incorporate the above-mentioned features enhance your operations while saving you countless hours figuring out which third party apps and software integrate well with each other.
Avoid Delaying Your Grand Opening By Completing These Requirements Ahead of Time
Delays in opening your restaurant mean more expenses and no sales, which means pushing back the point where you get your return on investment. Delays in serving orders lower customer satisfaction, discourage potential repeat patrons, and lower sales.
Carefully mapping out every step in opening a restaurant, including the processing of license and permit requirements, will save you from such delays.
Including restaurant technology in your new restaurant’s plans preempts the many growing pains common in any business, keeping service times low, customers satisfied, and sales on an upward trajectory.