What is the Cost of Opening a Restaurant in Dubai?

Getting your dream restaurant business into the real world is a challenging project, but it can also be incredibly rewarding. The basic question that will come to your mind is what is the minimum amount required to open my restaurant in Dubai?

There are a lot of costs to consider in your budget including variables and the type and size of restaurant you want to open.

Here we will guide you through a particular type of restaurant as an example so that you can map and arrive at a basic cost for your type of restaurant and we are not going to discuss creating a business plan.

We recommend you plan the budget properly in the initial stage so that you can avoid any last-minute surprises.

Commercial license for your restaurant

The cost for obtaining a commercial license will vary from AED 15000 to 25000 based on the type of activity you are going to do.

The next step is to get a Food license from the food safety department.

 If you are planning to open a restaurant in other emirates, you have to check with the respective authorities.

What is the cost of Leasing

Once your license is in the process head out to hunt for the space based on the type and size of restaurant you want to open.

Normally for a 100 sq m shop in Dubai, the annual rent varies from - 100k to 500k depending on the location. Keep the budget counted for 5% Security deposits to landlords, 5% commission to Real estate agents, and other government fees in addition to the rent.

What is the cost of Kitchen equipment

The next step is to finalize the menu because the kitchen equipment will be selected based on what type of menu you are going to serve

Finalize all the kitchen equipment and layout with your chef and kitchen equipment supplier

The typical cost of kitchen equipment for a 100 sq m restaurant will be from AED 80000 to AED 300000 depending on the type of cooking.

Designer and fit-out Contractor appointment

Appoint a restaurant designer who is well versed in all the details not only color, theme, and furniture selection, but also has a sound knowledge about furniture layout, can utilize the space wisely, understands the kitchen requirements, electromechanical works, authority approvals, and inspections. Because if any one area goes wrong, you will not be able to open the restaurant on time as planned.

If you need further assistance, we can help you with the full turnkey interior fit-out services or part of services like Authority Approvals. click here to get in touch with us

Statutory Permits

Obtaining statutory permits is mandatory before starting your restaurant construction works even if it is a modification/ renovations or alterations.

Let's discuss the restaurant located in Dubai based on the statutory requirements

An experienced designer or decoration contractor will take care of the government regulations and requirements and they will incorporate them into the drawings and layout. We advise you to go with an experienced contractor.

Normally the costs associated with the above coordination process are charged by the contractors separately and there will be nominal government fees and deposits that are to be paid by the restaurant owner.

Fit-out and Decorations

Once your contractor has obtained the fit-out permit from the municipality, you are good to start the construction work.

The cost of fit-out works will differ based on what type of decoration and finishes you choose.

You can keep a minimum budget of AED 150000 for a 100 sq m restaurant and it can go up to AED 500000 as per your requirements.

Furniture

The furniture selection is totally under your control.

The minimum budget you can allocate for the starting range quality loose furniture including cash cash counters, service counters, etc is around AED 20000 for a 100 sq m size restaurant.

Staffs

Allocate some funds for staff recruitment, training, uniforms, accommodation rent, transport, and other protocols as per government regulations. Typically keep a budget around AED 150000 for 10 staff. This is a one-time initial expense and the staff visa renewal will be after 2 years.

You can approach any business to set up offices and they can help you with the PRO services and the cost associated with it.

Marketing and promotion

You have to allocate a budget for business promotion expenses such as digital marketing, printing the menu, flyers, food delivery aggregators, advertisements, signages, etc.

Typical minimum budget for the above AED 25000

Working capital

You know your business better so keep a runway for a minimum of 3 months of operations that includes rentals, staff wages, utility expenses, etc.

We will leave it to your discretion to calculate the working capital cost.

Summary

The Rough estimate is calculated for a 100 sq m standard Indian type of cooking restaurant. This budget is at a minimum consideration for indicative purposes only and it is variable as per the needs. We recommend you do your research based on your requirements.

If you need further assistance, we can help you with the design drawings, authority approvals, and complete turnkey interior fit-out services for your restaurant. Click here to get in touch with us.

Reach out to us at contact@willowooddesign.com

or Call and ask for Siva at 058 576 1379 for free advice.

DISCLAIMER: This content is provided for informational purposes only and is not intended as legal, accounting, tax, HR, or any other professional advice. You are responsible for your compliance with laws and regulations. You should contact your subject matter expertise or other relevant advisor for advice specific to your circumstances.