Restaurant License

As in any major city, food and beverage services in Dubai, UAE, are in high demand. In Dubai’s case, this demand is greatly enhanced by the city’s constantly growing population due to the influx of expats and tourists in recent years, as well as its multicultural diversity that calls for access to various cuisines. As such, setting up a restaurant business in Dubai has a high potential for good profit. Furthermore, with the continuous expansion of Dubai’s residential areas, there’s no shortage of food-related business types to engage in and locations to base your business.

In Dubai, any business looking to serve food or beverages to the public needs to obtain a restaurant license from the Department of Economic Development (DED) or the Dubai Municipality. The specific requirements and procedures for obtaining a restaurant license in Dubai may vary depending on the location of the restaurant, the type of cuisine being served, and other factors, so let’s dive into an overview of restaurant licenses in Dubai.

Types of Restaurant Licenses in Dubai

All food-related businesses in the UAE are subject to the “Food Code” – a set of regulations introduced by the government regarding food safety. It applies to all businesses related to this industry, from restaurants and cafes to supermarkets, food delivery, and even cruise ships. Each of these business activities and establishments implies specific aspects and different requirements, but in general, food-related businesses require 2 types of licenses issued by different agencies.

1. Trade License

This license enables you to engage in commercial activities and is issued by the DED. It is the most common license for businesses with a quite straightforward application and approval process.

2. Food and Safety License

This license is issued by the Food and Safety Department (FSD) of the Dubai Municipality and is required for running business activities related to edible products in the UAE. The procedure of acquiring a Food and Safety License is more complex, as food is closely tied to health and safety issues, and involves additional documents, such as a Trade License and various permits from the respective authorities.

There are other specific license or permit types aimed at certain related activities, including:

• Liquor License
• Pork Permit
• Vehicle Permit
• Food Consignment License
• Ramadhan Permit

How to Open a Restaurant in Dubai

Opening a restaurant in Dubai requires careful planning, adherence to local regulations, and a significant investment. Here are the key steps to consider when opening a restaurant in Dubai:

Research and Planning

Conduct thorough market research to identify the target audience and competition, as well as the type of cuisine and concept that will work best in Dubai. Create a business plan that outlines your concept, target market, current industry trends, financial projections, and marketing strategy.

Legal Requirements

Register your business with the Department of Economic Development (DED) and obtain the necessary trade license for a restaurant. You will also need to register with the Dubai Municipality and obtain a food and hygiene license, as well as adhere to other local regulations.

Location

Choose a strategic location for your restaurant that caters to your target market and is compliant with zoning regulations. Consider factors such as foot traffic, accessibility, and competition in the area.

Menu Development

Create a menu that reflects your concept and reflects the tastes of the local population. Consider incorporating local flavors and ingredients while also offering international options.

Staffing

Hire a knowledgeable and experienced team, including chefs, kitchen staff, servers, and managerial staff. Ensure that your staff is trained in food safety, customer service, and local regulations.

Design and Décor

Invest in a well-designed and aesthetically pleasing interior that reflects your restaurant's theme and concept. Hiring professionals to help you create a unique, welcoming space would be a good idea.

Food Suppliers

Establish relationships with reliable and high-quality food and beverage suppliers to ensure a consistent supply of ingredients and products for your restaurant.

Marketing and Promotion

Develop a marketing plan to create awareness about your restaurant. Utilize social media, local advertising, and promotions to attract customers to your establishment, as well as loyalty and discount programs to make them your regulars.

Quality Control

Implement strict quality control measures to ensure that the food, service, and overall experience meet the highest standards. It is important to remember that even the best marketing cannot make up for the lack of quality services.

Financial Management

Manage the financial aspects of your restaurant carefully, including budgeting, pricing strategies, and cost control measures. Having a skilled bookkeeping professional familiar with the local regulations can be a great advantage, and establishing close ties with reliable suppliers can help you cut your supply costs through discounts.

Architectural Requirements for Opening a New Restaurant

Apart from the licenses and permits required to open a restaurant in Dubai, there are also specific requirements for the premises you intend to use it, and you need to make sure that it complies with zoning and building regulations.

• The kitchen floor space has to amount to 28-35 sq. m (if the kitchen has a tandoor) or to 40% of the restaurant’s total area.
• The chimney must be at least 2 meters higher than the nearest building, and the premises require an adequate ventilation system.
• The roof, walls, and floors of the interior must be washable, non-absorbent, and fire-resistant.
• The washing and cleaning of utensils, meat, and vegetables must be done in separate sinks.
• There must be designated food storage and processing areas for all food types and sufficient space.
• The drainage pipe must not be less than 5 cm away from the wall.

Other common requirements include smoke detectors, a waste disposal system, pest control, sufficient space for kitchen utensils and appliances, separate toilets, etc. Note that the detailed layout plan of the future restaurant needs to be submitted to the FSD in order to obtain the Food and Safety License.

Restaurant License Costs in Dubai

The costs for a restaurant license in Dubai can vary depending on the type of establishment and the location. However, in general, the costs of a Trade License for a restaurant in Dubai can range from AED 10,000 to AED 12,000. This can include the application fee, government fees, and other administrative expenses.

When it comes to opening a new restaurant in Dubai, the process involves various costs apart from the restaurant license itself, and the expenses can vary heavily due to numerous factors such as the establishment type and size, rent, employee salaries, and others. Here is the approximate list of costs to consider:

Location and Rent

The cost of renting or leasing a commercial space for a restaurant can vary widely based on the location, size, and quality of the premises.

Interior Design and Renovations

The expenses for interior design, decorations, and renovations to create an appealing dining environment.

Kitchen Equipment

Costs for commercial kitchen equipment, such as stoves, refrigerators, ovens, and other necessary appliances.

Permits and Approvals

Expenses for obtaining permits, health and safety certifications, and other regulatory approvals.

Staffing and Payroll

Funds for hiring and training staff, as well as ongoing payroll costs.

Food and Beverage Supplies

Initial inventory costs for food, beverages, and other supplies needed to start operations.

Marketing and Promotion

Budget for advertising, marketing, and promotional activities to attract customers.

Insurance

Costs for obtaining business insurance, liability coverage, and other necessary forms of insurance.

Utilities and Operational Expenses

Budget for ongoing operational expenses, such as electricity, water, gas, and other utilities.

How to Acquire a Restaurant License in Dubai

Here are the general steps to obtain a restaurant license in Dubai:

Business activities and establishment type. First, you need to specify the business activities you intend to carry out, such as food and beverage service, takeaway or delivery service, etc., and decide on the type of establishment you want to open, whether it's a casual dining restaurant, fast-food outlet, cafeteria, or any other specific type of eatery.

Business plan and documentation. Prepare a comprehensive business plan for your restaurant, including details of the menu, management team, financial projections, and other relevant documentation.

Trade name and initial approval. You will need to register a unique trade name for your restaurant and obtain initial approval from the DED.

Location and permits. Once you have chosen a location for your restaurant, you will need to obtain the necessary approvals from the Dubai Municipality.

Trade License application and fees. With all the necessary documentation, you can submit the application for the Trade License license along with the required fees to the DED.

Health and safety requirements. Your restaurant will need to comply with the health and safety regulations set by the FSD, including obtaining a food handling permit and adhering to hygiene standards.

Food and Safety License. After you have obtained the Trade license and other mandatory permits, apply for the Food and Safety License with the FSD by submitting all the necessary documents, including a detailed plan of the premises.

Inspections and final approval. After submitting the application, your restaurant will be subject to inspections by the Dubai Municipality to ensure that it meets the necessary standards. Once all requirements are met, you will receive the final approval and the restaurant license.

It's important to note that the process of obtaining a restaurant license in Dubai can be complex, and it is advisable to seek the assistance of a professional business consultant or legal advisor to ensure that you meet all the requirements and procedures.

Required Documents for a Restaurant License in Dubai

• Trade License application form
• Copy of the passport and Emirates ID of the owner or partners
• Passport-size photograph of the owner or partners
• Proof of ownership or tenancy contract for the restaurant location
• Food and Safety License from the Dubai Municipality
• NOC (No Objection Certificate) from the Dubai Municipality
• Health and hygiene certificate for the restaurant premises
• Menu of the restaurant with prices
• Dubai Civil Defense approval for the restaurant premises
• Certificate of conformity for kitchen equipment
• Detailed layout and floor plan of the restaurant
• Proof of payment of the required fees
• Any additional documents or permits as required by the Dubai Municipality or other authorities.

Conclusion

While starting a restaurant business in Dubai has great potential for success and profit, as well as favorable conditions and environment, it can also be a costly venture, and the licensing process includes additional steps for compliance with UAE’s Food Code. On the other hand, these are necessary measures aimed at ensuring a high level of quality in the country’s food industry and related services. In order to avoid unnecessary complications when applying for a restaurant license and starting a food-related business, consult with the relevant authorities or local professionals for advice and guidance