How to Open a Restaurant or Café in Dubai?

Owning a successful restaurant business in Dubai, a vibrant tourist hub, is also a stepping stone for long-term success and growth in the food industry as a whole. However, there are quite a few processes you need to complete before opening a cafe or any eatery in the city.

Why is opening a restaurant or cafe in Dubai a great idea?

Supported by the global 'gourmet' movement, it's easy to see why Dubai, and the UAE as a whole, are fascinating new destinations for aspiring restaurateurs. As a city that attracts millions of tourists each year, Dubai is a fantastic place to establish a restaurant business. Dubai is rapidly becoming one of the world's top culinary destinations, and opening a restaurant in Dubai can be incredibly profitable if done correctly.

• A thriving and diverse consumer base from every continent on the planet: Asia, Europe, the Americas, and the Middle East are represented.
• Tourism is a rapidly growing sector.
• A strong government commitment to boosting the growth of the economy and GDP.
• Incentives within the food and beverage sector for opening a restaurant or cafe in Dubai.

However, before you can officially open a restaurant in Dubai or the UAE and take your piece of the pie, there are quite a few hurdles to overcome. These include obtaining a restaurant license in Dubai, or if you're opening a cafe, you'll need to get your cafe license. You will also need to account for the cafe business setup cost or the cost of a restaurant business license, whichever is applicable.

Cafe License in Dubai - Opening a Cafe in Dubai

The most important thing you need to do before opening a cafe in Dubai is to obtain a cafe license. The Food and Safety Department can issue a food Permit, and the Dubai Department of Economic Development (DED) can issue a cafe trade license. Obtaining a cafeteria license is a time-consuming process. First, let's review the procedures for obtaining a cafeteria business license.

• Reserve the Company's Trade Name
• Get Initial Approval from DED
• Obtain the Cafe's Lease Agreement
• Sign the MOA/LSA agreement at DED
• Get Approval from Dubai Municipality – Food Control Department and Drainage Department
• Obtain an EHS certificate from Dubai Civil Defence
• Receive the license from DED
• Work with an interior decoration company for compliance
• Obtain visas under the company
• Operate your business immediately after receiving approval from DM.

Restaurant License in Dubai – Key Facts

To open a restaurant in Dubai, you must first obtain these two types of licenses:

• A Trade License and
• A Food License.

The Trade License is issued by Dubai's Department of Economic Development. You must specify the type of restaurant you intend to operate, as it must be clearly stated on the license. Depending on factors such as the type of restaurant you own and operate, the Trade License cost can be as follows:

Additional Fees:

• Building rental
• Local UAE national Sponsorship Fees
• 5% of the annual building rent
• All visa Costs
• Cost of interior, furniture, and kitchen equipment
• Professional Fees for the Service Provider

The food license in Dubai is issued by the Food Safety Department, which is tasked with issuing Food Licenses for restaurants. After obtaining your Trade License, you must get this license to receive approval for your restaurant's development plan. Certain documents must be submitted to the food safety department to obtain a Food License.

Cost of a Restaurant License in Dubai

The DED (Dubai Economic Development) can help you obtain a restaurant license in Dubai. It can be registered as a sole proprietorship where a foreign national can be the 100% owner of the restaurant. The cost of a restaurant license in Dubai is approximately AED 18,260, as detailed in the table above. This excludes rental and furnishing costs. Still, don't let the cost factor deter you. Cafes and restaurants in Dubai play a significant role in the social life and lifestyle of everyone in Dubai. With a growing number of tourists and business visitors, there is a significant demand for restaurants and cafes in Dubai and the UAE.

Steps to Open a Restaurant or Cafe in Dubai

To open a restaurant on the Dubai mainland, entrepreneurs must first obtain a trade license from Dubai Economic Development (DED). The establishment of a restaurant can be accomplished through the following basic steps:

1. Choose a trade name.
2. Select a local sponsor (if applicable).
3. Get Initial approval from DED.
4. Have the restaurant's interior designed in accordance with the guidelines of the Food and Safety Department. When leasing the premises, adhere to the department's criteria.
5. Obtain the lease agreement and Ejari for the rented space.
6. Sign the MOA/LSA agreement at DED.
7. Submit all required documents to the Department of Economic Development (DED).
8. Obtain a letter of authorization from the Food Safety Department and permission from the Dubai Municipality.

How to start a coffee shop business in Dubai?

The Restaurant Business in Dubai

The processes mentioned above may make the process of running a restaurant business in Dubai seem simple, but it is not. Setting up a restaurant in Dubai requires a series of permits and approvals. Every restaurant or cafe, regardless of whether it is a fine dining restaurant, cafe, or bakery, must comply with a strict food code. This food code is intended to assist the person responsible for ensuring the restaurant operates in compliance with the regulations. It would be best for aspiring restaurateurs to use the services of top business setup consultants like World Company Setup to be guided smoothly through the process and in compliance with the rules and regulations.

Restaurant businesses in Dubai are among the most profitable businesses to establish due to the large number of tourists and busy residents who do not have time to cook for themselves or wish to taste multiple cuisines from different countries. Additionally, Dubai is a cosmopolitan city where everyone wants to try new cuisine, which helps restaurateurs gain new customers every day.

For a visionary entrepreneur who is passionate about the hospitality industry, I would recommend setting up a restaurant or cafe in Dubai because both businesses are among the top industries due to the daily lifestyles of Dubai residents and visitors who are always too busy to cook or frequently go out to eat in their own regular cuisine.