This article was updated on June 13th, 2023
This article was updated on June 13th, 2023
This article has been researched and written by Dastan Nurmanbetov and the team at Creation Business Consultants and has not used AI in generating this article.
Over the years, the United Arab Emirates (UAE) has established itself as a leading Food & Beverage (F&B) destination in the Middle East region. Dubai continues to attract international and home-grown F&B brands. Compared to New York, Dubai boasts more restaurants per person. By Q4 2022, there were 13,000 restaurants in the UAE. UAE remains the location for international retailers as well as F&B operators looking to expand and enter the Middle East market.
We have pulled together several top tips to set your restaurant up for success in Dubai. Since it can be a fiercely competitive market over here, you need to gain the right insights as you build your restaurant. Our top tips for starting a restaurant business in Dubai include:
There is a huge supply of international and local food available, and the demand for both continues to grow. To succeed and turn your restaurant into an established and thriving dining destination, you need to understand your immediate market. Once you do, you can tailor your offerings and price points to suit your potential consumer base. If you do this in the right way, people will choose your establishment over your competitor.
If there is one thing the residents of Dubai enjoy most is a themed restaurant and brunch theme style. Your restaurant’s theme will form the foundation for your brand. It will help you gain success, and it will give your customers something to identify you by. This is the first thing that your guests will encounter when they enter your restaurant, and it should be a direct reflection of your business’ personality. To really connect with your customers, have the same theme running through your restaurant’s interior, exterior, decor, menu and overall concept.
Hiring the right staff is essential for your business’ success. You want to find and hire people that are-goal oriented to help you get your restaurant up and running. Labour costs can be high in the UAE, especially if you have a high turnover rate. You need to source hardworking people who take as much pride in your establishment as you do. Invest your resources and time in finding and hiring the right people from the start. Doing this can help you reduce your overall costs, as well as the hassle that comes with constantly on-boarding new staff members.
With such fierce competition, your food costs can make or break your restaurant. Unless you are going after the riskier “prestige” market, customers are not going to come in and spend big on your food if they can get it cheaper down the road.
If you have high food costs, you run the risk of missing out on sales, which in turn makes your wastage levels too high.
To work out your total food cost, take the total cost of a dish’s ingredients and divide it by the sale price. Compare your options for raw ingredients from different vendors and use a cloud-based POS system to monitor your inventory.
In the restaurant business, technology can make your entire process easier and more streamlined. It can seamlessly take on your front-end and back-end operations, and this gives you complete control. Install and use a POS system to handle orders and track inventory.
When you look at starting a restaurant business in Dubai, you need to have realistic cost measures in mind. Costs vary, but a common ballpark figure for setting up a restaurant business in Dubai is between AED 500,000 and AED 1.25 million as an initial outlay. The total costs will depend on your suppliers, lease value and the licensing authority. Bear in mind the following when working out some of your costs.
Are you looking at expanding your F&B concept into the UAE? Do you require market research on the F&B industry in the UAE? Do you want help starting your new restaurant in Dubai? Or your current restaurant needs to be re-examined to identify ways to cut costs such as: reducing sponsorship fees or examining the operating mode? Maybe you have questions or concerns? Either way, reach out to our professional and experienced team by emailing [email protected] or calling +971 4 878 6240. We look forward to speaking to you soon.