A Complete Guide to Starting a Profitable Restaurant in Dubai

Are you someone who wants to create your own business niche in the entrepreneurial paradise of Dubai? Is it the restaurant business in which you aspire to build your own brand? But concerned over the hows and whens? We got you covered.

Starting a restaurant business in Dubai can be the best choice of your life if it gets carried out with the right steps. Being a sphere of business with tight competition makes the restaurant business challenging and interesting simultaneously, since you will need to cook up your own unique branding techniques and strategies to stay ahead in the game.

 

Understand the Industry

The restaurant business in Dubai has always been an ever growing field of business. The UAE restaurant business has low entry barriers and low startup costs. The hype Dubai receives as a tourist destination also favours the restaurant business here.

Though the restaurant market shows some high crowding indicators, there is still opportunity for prospective entrepreneurs to start their own brand. There are still some unexplored and underdeveloped segments left to delve into. Knowing all these better will help you create your business plan better.

 

Choose Your Niche

There are several niche ideas available for an aspiring entrepreneur who is looking towards venturing into restaurant business. There will always be wider options available to choose from in the restaurant business in Dubai. Choosing the right niche helps for better restaurant business setup in Dubai.

 

Know Your Competitors

Having a knowledge of who your competitors are and what they provide can help you stay ahead with your own products, services, and marketing. It will allow you to set competitive prices and respond to competitor marketing campaigns more effectively. Comprehending your competitors' strengths and shortcomings helps you to identify the market gap and stay ahead in the game by retaining your customers' attention.

 

Economic Analysis

If you want to start a business successfully and make a good earning, you need to ensure proper economic and cost analysis in order to implement the best industry practices. Consider conducting detailed market surveys while planning your economic and cost analysis. You should also estimate the budget for business consultants, branding, and building a strong client base.

 

Know the Possible Threats and Challenges You Will Face

The restaurant industry in UAE is contrastingly competitive and profitable. Since the market is saturated, service providers are coming up with more novel and trendsetting ideas offering the customers with a multitude of options. So this particular field of business will demand constant grinding from your part to face the challenges till you get established.

Exorbitant rentals, Government regulations, as well as the opening of new restaurants or cafes, can significantly impede your restaurant's progress. Having a skilled team of business consultants like Endeavour can ease the establishment of your brand with unparalleled definition and distinct parameters, which combats the oversaturation. If you have done adequate research and promote your brand accordingly, growth will follow.

 

Choose the Most Suitable Legal Entity and getting Documentation done

Deciding which legal entity helps to boost your brand growth is also important when you are starting a restaurant business in Dubai. The legal entity you can choose will be determined by your citizenship and the status of the business you want to open. Limitation of personal liability, accuracy of transferability, admission of ownership and investors' objectives, along with taxes are some of the areas you should examine before deciding a legal structure for your restaurant business in Dubai.

Getting the necessary documentation done is a prerequisite for running your business in Dubai. The process of acquiring these can be exhausting if you don't have proper knowledge of the whole process and this ignorance may cause you loss of time. Getting yourself the aid of a seasoned business consultancy is the best thing you can do here for yourself instead of getting into the loop of enormous paperwork.

 

Keep Business Name Catchy

Be imaginative and innovative to the core while questing a name for your company, because the name you choose will influence how others see your company and the subsequent branding processes too.

 

Know the Best Insurance Policies for You

It's hard to carry out a business in the United Arab Emirates as well as in other nations without a fundamental insurance policy coverage required by your particular industry. So it's crucial to discuss with an insurance broker in clear terms about your demands and  set aside money for it in your budget accordingly. A well experienced business consultancy can help you with all these needs for developing a low cost business in Dubai.

 

Finding the Capital

Whether you’re choosing to start your restaurant as a low cost setup or as a large scale restaurant, sourcing the necessary capital will definitely be a priority. Finding a suitable location and purchasing necessary cooking utensils and equipment, as well as other supplies, consumes a significant portion of your startup funds.

A well crafted business plan can be beneficial since it reduces your effort to persuade your bank, or investors to invest in your business. Personal savings and the sale of personal stocks and properties can be used to raise funds. Convincing your business idea to donor groups and angel investors, and applying for business grants or selling shares can also be considered. Obtaining soft loans from your group of people can also help.

 

Choosing your Business Location

While choosing the location for your Restaurant keep the demand for food and beverages along with the attainability of necessary supplies in mind. On top of it, make sure it is somewhere your customer can easily locate. Be conscious of the possible dining demands of the area and the purchasing power of the community along with the competition you may encounter in that particular area. No business can survive without adequate parking facilities, you should take care of that too. Consulting a proficient business consultant or a realtor can help you here.

 

Human Resource

When it comes to hiring employees for a standard restaurant business in Dubai, you should make plans to hire a competent Chief Executive Officer (you can occupy this role), Admin and Human Resources Manager, Merchandize Manager, Bakers / Cook / Chef, Restaurant Manager, Sales and Marketing Officers, Accounting Clerk, and Cleaners. On the average, you will need a minimum of 5 to 10 key staff members to run a small – scale but standard restaurant business in Dubai.

 

Marketing is Everything

Having a well drafted marketing plan is inevitable to build your restaurant business in Dubai. With strategic marketing, both physical and digital you can attract more customers and build a strong customer base. Care to reach to the maximum audience either by conventional methods or by employing unique patterns. Joining the local restaurant business associations can provide you with insights on  industry trends and tips. Actively provide discount days and offers for your customers and never underestimate the power of word of mouth marketing.

Bringing up Brand Awareness is another aspect of marketing strategy. It helps to enhance your business growth in a better comprehensive way. Placing ads on both print and electronic media, Sponsoring relevant community – based events / programs, installing billboards at prime locations, bringing the brand style to every aspect of your business etc are few steps in building brand awareness.

 

Operational cost control

Implementing practices that can help you to bring down the prices can help you a lot in the journey. Making your purchases for food supplies from the source of production itself and trying to keep the purchase in higher quantities also help you to bring down the overall production and operational cost. This in turn aids in redirecting the funds to marketing and brand promotion.

Endeavour Corporate Services offers unique and innovative strategies to build your business in Dubai. Our team of talented and experienced experts will asist you in every step of your business formation offering you the best services that meet your requirements in the most accurate way. Being the most preferred provider of low cost business setup in Dubai, we assure you the excellentest services tailor-made for your needs..