Types of restaurant license available in Dubai, UAE

Types of licenses for opening a restaurant in Dubai are

1. Restaurant and Coffee Shops License

This is a Professional license that is required for opening restaurants and coffee shops in Dubai, UAE. Here the restaurants that are equipped with suitable installations to prepare and serve food, as well as snacks inside, are allowed. Also, beverages (liquid refreshments) for immediate consumption by the public are allowed.

2. Mini Store and Restaurant License

This is a commercial license which is required for opening mini restaurants and coffee shops. It allows restaurants to prepare and serve food and snacks inside the restaurant. Apart from that, the license can be used to sell consumer goods such as fresh preserved and canned foodstuff, beverages, dairy products, bakery products, newspapers etc.

3. Floating Restaurant License

This is a commercial license which is required for opening restaurants and coffee shops for Tourism activities. Here the ships, boats, or yachts equipped for dining onboard are considered; Serving food and beverages while the ship is anchoring or on an entertainment trip is also allowed.

How to open a restaurant in Dubai

1. Obtain food and restaurant license

The first step to open a restaurant in Dubai is to acquire your food and trading licenses from the authorities. You should approach the Department of Food and Safety for acquiring the food license. For the trade license you must approach the Department of Economic Development (Approx. AED 10,000 to AED 12,000), and the Department of Tourism and Commerce Marketing (DTCM). For obtaining a food license, a copy of the trade license needs to be produced, along with the interior decoration plan. You might need to obtain other licenses like Food Consignment License, Vehicle Permit License, and Liquor License.

2. Select a suitable location

The second step includes choosing a suitable location. A business location is an important factor in business success. If your location doesn’t attract customers or is not easily accessible, your business won’t be able to grow. You must decide whether the restaurant should start in the mainland, free zone, or offshore.

You can trade in the Dubai mainland area, but the sponsor will hold 51% of your shares, and the rest shall remain with the owner. If you are planning to start a restaurant in one of Dubai free zones, the consent of the corresponding free zone authority should be acquired. The Free zone areas allow you to hold 100% of your shares and might not require a local sponsor. But in free zone your area for trade may have some restrictions. Each area has got their own criteria to start a restaurant business. The selection of location for your business should be based on various factors like, Accessibility, Customer Base, supplier availability, Affordability, Visibility etc.

3. Prepare the business plan

After selecting the location, a proper business plan needs to be outlined. You must clearly state the business plan and analyze all the aspects in a practical manner. Here the factors like SWOT analysis, target marketing, financial plan, contingency plan for uncertainties, market survey, cash flow projections, break-even analysis etc. must be considered.

4. Calculate the business cost

The final thing to be considered before starting your restaurant is to create a proper financial plan to keep track of your spending. This must include the restaurant cost, cost of staffing and pieces of equipment, license cost etc. You must prepare a rough estimate of all the investment and expenditure.

Apart from that, the below mentioned costs should be considered:

• Local sponsor fee - approximately AED10, 000/year
• Trade license fee for DED - approximately AED10, 000 to AED 12,000
• Labor and immigration registration - up to AED 8,000
• Restaurant premises rent – AED 60, 000 and above (varies by location)

Architectural requirements for opening new restaurant in Dubai

• A kitchen with an area of at least 300 to 380 square feet (if there is a tandoor in the kitchen), or 40% of the total area of the restaurant
• Good ventilation facility
• The chimney should 2 meters higher than the nearest building
• Walls, floor, and roof that is washable, non-absorbent, and fireproof
• Storage facility for all types of food items
• A basin for washing the utensils, a separate basin for cleaning the vegetables, and a separate one for meat
• The drainage pipe should be at a distance of at least 2 inches from the wall