Tips for starting a restaurant in Dubai

Costs to consider when opening a restaurant

• Licence
• Rent
• Permissions
• Staff training
• Capital costs
• Staff visas
• Opening stock
• Collaterals
• Website
• Sponsor fees
• Accounting software
• Occupational health cards
• Equipment testing
• EPOS system
• Fire fighting test certificate
• Insurance
• Working capital
• Restaurant consultant
• Accountant

Dos

• If you have an area in mind for your food establishment, make sure that you do your research first by looking at footfall and demographics to ensure there is the target audience to service.

• Do prepare a business plan with full financial forecasts before committing any expenditure.

• Do ensure you have your restaurant food offering and menu established before you make any equipment purchases. We have seen businesses that purchase kitchen equipment before the food offerings have been decided upon which leads to huge amounts of capital being wasted.

• Do cost out your menu fully so that you can establish a pricing policy that covers your fixed overheads. Menu cards should be prepared with the exact ingredients and costing.

• Do engage a specialised restaurant accountant to assist with your financial forecasting and monthly reporting.

• Prepare a detailed marketing plan and utilise delivery channel providers, such as Deliveroo and Zomato. These online platforms could add an extra 40 percent on your sales each month.

• Do prepare a fully comprehensive competitor analysis in order to understand their pricing and product offerings.

• Do prepare a full milestone analysis as part of a fully rounded project management plan.

• Do check the permissions and NOC’s required from your landlord.

• Do check the power requirements of your restaurant equipment and ensure the restaurant unit you choose can support these.

Don’ts

• Don’t choose the first unit a real estate broker offers you. Many landlords will only offer a couple of month’s grace period on the rent and delays obtaining permissions could eat into your working capital.

• Don’t over estimate your first year’s sales.  Be realistic with your financial forecasting to avoid under capitalising your restaurant venture.

• Don’t try to open a restaurant on your own if you do not have any restaurant experience. The majority of restaurant ventures that fail in Dubai are down to owners trying to do everything themselves with no previous knowledge of the F&B sector or Dubai.

• Don’t overprice your menu offerings. With so much choice for the consumer in Dubai, getting your pricing right is fundamental to business success.