How Much Money Do You Need To Open A Restaurant In Dubai

You have a passion and an enterprising mind for food. But numerous questions may appear in your mind whenever you decide to start a restaurant business. In this case, most of them have a well-known question, how much money do I need to open a restaurant? Restaurant opening cost varies on several factors and countries also. But it is a universal truth that whatever you do you must consider the cost before making a business plan. However, let’s discuss how much money do you need to open a restaurant in Dubai.

How Much Money Do You Need To Open A Restaurant In Dubai?

Cost is a crucial term for all business platforms. But how much money to start a restaurant? It is a frequent question that all people feel in their minds. The average cost to open a restaurant is AED 790,000 to 800,000. It is noted that if you open a small restaurant then the cost to open a small restaurant will be lower than that. Therefore we have given a chart for the startup cost of a restaurant with square feet in Dubai. 

This chart shows that starting costs can be different depending on various factors. It is noted that remember this cost can fluctuate depending on various factors. However, we have said that the cost to open a restaurant depends on two important terms, fixed cost and running cost or operational cost. But these can be divided into different categories.

Fixed Cost

• Location
• Construction and design
• Restaurant furniture
• Restaurant Equipment

Location

Location plays a leading role in a successful business. A good location can drastically change business growth. However, restaurant businesses rely on customers. In this case, choose a place where you have a chance to get more customers. 

If you choose the middle of the city, you may have to count more than other locations. It is because such a place is populous and competitive. Some popular places are Barsha, Business Bay, Deira, Down Town, Abu Dhabi, etc. So, choose a location according to your budget. 

Construction and Design

Restaurant design and construction are necessary. Because it is the best way to snatch the customer’s heart. To make it a smart design (Flooring, AC, wall modification, lighting, and others) hire restaurant fit-out contractors. They will design your restaurant according to your interest. In this case, you have to pay the charge, which will be counted as your start-up cost.    

Restaurant Furniture

It is an important and obligatory thing. As a restaurant owner, you have to spend a big amount on restaurant furniture, such as tables, chairs, culinary components, and many more. Basically, there are different types of categories of such furniture. If you choose a costly item then you have to spend more. So, it totally relies on the restaurant owner’s interest.

Restaurant Equipment

There are large amount of equipment in the restaurants. Basically, how many components should a restaurant have? It depends on how many people you want to entertain. Choose such equipment based on your restaurant size, sitting capacity,etc. The most common restaurant components, like kitchen elements (refrigerators, stoves, bowls, spoons, and others), buffet equipment, ovens, grills, griddles, ranges, mixers, slicers, coffee makers, and many more.

Operational Cost

• Document or Government Approval
• Rent cost
• Employee registration cost
• Salary and wages
• Advertising and marketing budget

Document or Government Approval

To do a food business in Dubai, you require two types of licenses: a food license and a trade license. This license requires the approval of the Dubai Government. In this case, the restaurant owner needs to provide some crucial information, and the cost may need to process the document and get approval.

Rent Cost

The cost of restaurant rent can be changed according to some factors, such as the location, size, and type of restaurant. Restaurant owners can be responsible for paying additional fees, such as property taxes, insurance, and utilities. These fees can be added significantly to the overall rent cost.

Employee Registration Cost

The cost of employee registration relies on the country, state, or city. Basically, employee registration costs include visa, insurance, and country ID. It means if you would like to hire an employee in Dubai from any adjacent country, then you may have to provide that. But how much money you should spend, it also depends on the above factors.

Salary and Wages

Salary and wages is an operational or running cost. It depends on the number of employees in your restaurant. You have to pay that monthly. But how much you will pay or how much you will minimize it depends on the restaurant owners. In this case, you have a chance to reduce employee costs.

Advertising and Marketing Budget

Whatever you do, you should keep a budget for marketing. Nowadays online marketing is popular. If you would like to promote your brand and let people know about the food items. In this case, there is no comparison with online marketing (Google Ads, Facebook, Instagram, Twitter, and other social media platforms). So, ensure a monthly budget and run a campaign. It will lead you to get more customers in your restaurant.  

How Much Does It Cost To Open a Cloud Kitchen in Dubai?

Cloud Kitchen is a virtual kitchen or ghost kitchen. This type of restaurant or kitchen requires low space, fewer staff, a small amount of kitchen equipment, design, and others. In this case, the kitchen owner doesn’t need to count a big budget to open a cloud kitchen in Dubai. But Dubai is one of the most expensive cities in the world.

So, if you have a minimum space kitchen, the location is a bit far from the city. In that case, the minimum start-up cost may start from AED 50,000 and reach AED 100,000. But this cost is also included with kitchen rent and all the necessary things. This cost may be lower or higher. It is because starting costs rely on the kitchen owners’ interest.

How Much Does It Cost To Open A Coffee Shop In Dubai?

Opening a coffee shop in Dubai is more expensive. But the cost can be reduced by applying some techniques. But let’s find out how much it cost to start up a café or coffee shop in Dubai. So, an entrepreneur should know this cost and make an actual decision. 

Basically, it depends on some factors, but it ranges from 140,000 AED to 200,000 AED. It is noted that you may have to deposit money for a certain period of time. In that case, this amount can be higher than that. However, we have given here a cost range for opening a coffee shop in Dubai.

Cafeteria start-up cost

• License cost: 20,000 AED
• Investors visa cost: 5,000 AED  
• Shop rent per 3 months: 4,500 AED (approx.)
• Internal cost: 15,000 AED

Cafeteria monthly expense

• Staff salary: 5,000 (approx.) for 2 persons
• Utility bill (electricity bill, water bill): 3,000 AED
• Monthly shop rent: 1,500 to 2,000 AED
• Other expenses: 2000 AED

What Is The Profit Margin In Restaurant Business In Dubai?

There is one thing and it is a real word for all the business sectors. If you invest more then you will return more. But spend costs through a systematic approach. Those are established restaurants that have a smart profit margin. 

On average, a restaurant owner makes 15% to 20% profit according to their monthly expenses. However, the restaurant business can be extremely profitable if you can manage it well. The restaurant profit margin will never be the same for all restaurants. It is because restaurant profit depends on some factors, such as

• Labor cost
• Food waste
• Customer retention
• Employee turnover
• Restaurant’s brand reputation
• Menu pricing
• Monthly expense

These above things can keep you behind from your expected profit if you don’t manage well. Many owners follow them and manage them well. But those who don’t manage well get low profit. So, it is clear in a simple sense.

How Much Does It Cost To Open a Food Truck in Dubai?

Starting a food truck cost can be changed depending on various factors, such as location, size of the food truck, permits, licenses, equipment, and operational expenses. For this reason, it is very difficult to specify how much it costs to open a food truck in Dubai. But the average cost to start a food truck in Dubai ranges from 130,000 AED to 140,000 AED. However, we have given some potential expenses to consider when opening a food truck in Dubai:

License and Permits

You would need to obtain a trade license, a food truck permit, and other necessary permits from the relevant government authorities. Collect a license from the Department of Economic Development and take approval from Dubai municipality where you want to serve food by food truck. Costs for licenses and permits can vary depending on the type of license and the duration of validity.

Food Truck Purchase or Rental

The cost of purchasing or renting a food truck can vary based on its size, condition, and equipment. Food trucks can range from simple models to fully equipped kitchens. Purchasing a new food truck can cost anywhere from AED 100,000 to AED 500,000 or more. Renting options may also be available at lower upfront costs. The food truck rental costs between AED 15,000 to AED 25,000 per month depending on location.

Equipment and Kitchen Setup

You'll need to equip your food truck with cooking appliances, refrigeration units, storage cabinets, work surfaces, and other necessary kitchen equipment. The cost can be different based on the quality and quantity of equipment you choose.

Customization and Branding

If you want to customize your food truck's exterior with branding, graphics, or logos, there will be additional costs for design and installation. Basically, this thing relies on the business owner. So, you should decide on this cost.

Ingredients and Supplies

You will be required to budget for ongoing expenses related to purchasing ingredients, food supplies, packaging materials, and other necessary items. This cost will be counted as the running cost. It is because you have to buy such ingredients each day.

Staffing Costs

If you require staff then you have to pay the charge based on the UAE labor law. If you hire a skilled person then you have to pay 5,000 AED per month. However, consider the cost of hiring and training staff members to operate your food truck, including chefs, cooks, servers, and cashiers.

Operational Expenses

These can include fuel costs, maintenance and repairs, insurance, parking fees, marketing expenses, and other miscellaneous costs associated with running a food truck business.

How Much Is the Tea Shop License Cost in Dubai?

If you would like to open a tea shop in Dubai then the investment is the first concern. But how much do you need to invest to start a tea shop in Dubai? In a true sense, the cost of a tea shop license in Dubai can vary depending on various factors, such as the location, size of the shop, and specific requirements. You have to pay for Dubai tea shop Licenses from AED 140,000 to AED 200,000. 

But you have to renew it annually. It is noted that to get exact information on the cost of a tea shop license in Dubai, directly contact the (DED) or consult with a business setup consultant. They will be able to provide you with the most relevant and authentic information regarding the licensing fees, documentation requirements, and any additional costs.

Is a Restaurant Good Business in Dubai?

Yes, the restaurant business is good business in Dubai. Because many people come here for different purposes. If you can grab them then you have a great chance to get more profit. There is one thing, though Dubai is a business city but difficult to build a business due to more competition. But if you have a new restaurant then you have to wait for at least two years to earn a profit. There are some other factors to make your restaurant popular within a short time.  

Can a Foreigner Open a Restaurant in Dubai?

Yes, they can. In this case, they have to follow two major requirements: trade license, and food license. You have to collect a trade license from the Department of Economic Development (DED). And collect food licenses from your nearer municipality. If you have these two things then you are able to open a restaurant in Dubai.  

Final Thought

The restaurant is one of the most profitable businesses in Dubai. Opening a restaurant in Dubai requires some documents, such as a trade license, and food license. But the restaurant starting cost is high compared to other Middle East countries. But how much money do you need to open a restaurant in Dubai? On average you can choose your budget around AED 790,000-800,000. We have referred in detail in the above section. Hopefully, that can be the best information for you to open a restaurant in Dubai.