The food and beverage (F&B) industry in Dubai is among the most dynamic and rapidly developing industries in the UAE. The population is growing by millions, the tourism is thriving, and the multi-ethnic population is enjoying global cuisine; the unique dining experiences are more in demand than ever. The dining nature in Dubai has offered it a chance to grow with the opportunities of fine-dining restaurants and themed cafes and food trucks as well as cloud kitchens.

This is what makes the idea of opening a restaurant in Dubai not only a thrilling experience but also a profitable investment as long as you get the details right. To have a successful launch, it is important to have an idea of the cost to be incurred, legal issues and operation. The prices in Dubai differ considerably based on the location, the type of restaurant, the design, the licensing, the staffing, and the technologizing.

The advice of business setup consultants in Dubai is usually sought by future owners who do not want to spend much and want to use their budget in the best possible way. They can facilitate the process by having their knowledge on how to form a company in Dubai, acquire a business trade license in Dubai, and deal with approvals.

We de-anonymize all the information you should have about the cost of starting a restaurant in Dubai in this detailed guide so you can make a strategic and confident plan.

Important Statistics that Affect Restaurant Setup Cost

There are a few fundamental factors that influence the amount of investment required to open a restaurant in Dubai:

1. Location

Decision-making on the mainland vs. free zone, prime locations such as Downtown, JBR, Marina and Business Bay, and secondary locations makes a great difference on the cost of rental, human traffic and freedom of operation.

2. Restaurant Type

The amount of investment that you will put in will be different based on whether you are launching:

• A café

• Fast-food outlet

• Casual dining

• Fine dining

• Food truck

• Cloud kitchen

The different models are characterized by varying licensing, equipment and operational requirements.

3. Size & Capacity

Big restaurants need more seats, more workers, larger kitchen areas and more stock, which makes them more expensive.

4. Licensing Requirements

Various government approvals are needed in F&B businesses, and they have their own charges.

5. Branding & Design

Dubai's restaurant market is competitive. The high-quality idea, innovative interior design, and effective branding will play a key role in the attraction of customers.

Legal Costs and Business License

To start an F&B business in Dubai, one has to take a license and undergo a number of obligatory approvals:

Trade License Fees

The Department of Economic Development (DED) issues a business trade license to open a restaurant in Dubai.

Average price: AED 12,000-AED 30,000 based on your company type.

Food & Safety Permits

You will need to provide restaurant layout plans and receive approval on the same by:

• Food Safety Department at the Dubai Municipality.

• Civil Defense (Fire & Safety)

Prices may vary between AED 1,000 and AED 10,000 based on the design and the size of the area.

Ejari (Tenancy Contract)

It is necessary to rent an Ejari in your business premises.

Price: AED 200-AED 500 (not including rental costs).

Visa & Immigration Fees

The cost of investor and employee visas can be as high as AED 4,000-7,000.

PRO Services

There are various government institutions involved in the development of Dubai. The paperwork and licensing may be simplified with the help of professional consultants who provide PRO services in Dubai and save time and do not delay the process.

Location and Rental Costs

One of the highest costs of restaurants in Dubai is rent. Costs vary across areas:

Prime Locations

• Dubai Downtown, Dubai Marina, JLT, Business Bay

Rental cost: AED 200-AED 350 per sq. ft in a year.

Good customer base, high-quality visibility, and large footfall.

Mid-Tier Areas

Al Barsha, Karama, Deira

Rental range—The annual rental is between AED 120 and 180/sq. ft.

Free Zone or Cloud Kitchen Spaces

May is much cheaper when there is no need of a dine-in area.

Hidden Location Costs

• Security deposits

• Fit-out approval fees

• Maintenance charges

• Service fees

These other costs might range from AED 20,000 to AED 100,000 depending on the leasing conditions.

Restaurant Fit-Out and Interior Fit-Out Costs

Aesthetics are a massive customer experience. Fit-out costs include:

Kitchen Setup

Commercial kitchens need durable equipment:

Typical cost: AED 50,000 – AED 500,000

Interior Design & Décor

Themes: Creative themes, quality pieces, and ambiance design might cost:

AED 150,000 – AED 700,000

HVAC, Electrical & Plumbing

Essential mechanical works can be between AED 20,000 and AED 100,000.

Safety Systems

Fire alarms, extinguishers, and emergency exits: These will be mandatory:

AED 10,000 – AED 50,000

Costs in Equipment and Technology

A contemporary restaurant has to invest in modern equipment and online solutions:

Cooking & Refrigeration

The majority of restaurants require ovens, grills, chillers, freezers, etc.

POS & Billing Systems

Point of sale software, printers, and tablets: AED 5,000-15,000.

CCTV & Security

AED 3000-AED 10000 based on cameras.

Online Ordering Integration

There are additional and necessary costs of delivery apps and CRM and digital menus.

Staffing and HR Costs

Salary and HR costs consist of:

Recruitment Costs

Recruitment of chefs, sous chefs, servers, managers, baristas, cleaners and cashiers.

Salary Expectations

An average budget for a mid-sized restaurant's monthly salary is between:

AED 25,000 – AED 80,000

Employee Visa & Insurance

Per employee: AED 5,000 – AED 7,000

Training & Development

Training is essential to quality and uniformity of services.

Inventory and Operation Costs

The preliminary stock purchases of raw materials can be

AED 20,000-AED 100,000, according to the size of the restaurant.

Monthly operating costs consist of:

• Utilities

• Gas

• Cleaning

• Packaging

• Marketing

• Delivery app commissions

An average monthly operating budget:

AED 20,000 – AED 60,000

Marketing and Branding Costs

To be visible in the competitive restaurant market in Dubai, marketing is important.

Branding

Logo, menu design, and uniforms: AED 2000-15000.

Digital Marketing

Advertisements, social media, cooperation with influencers:

AED 3,000–AED 20,000 per month

Launch Events

The cost of grand opening promotions can be

AED 10,000 – AED 50,000

Other Financial V.y.

Franchise Fees

In case of franchise: AED 100,000 - AED 500,000+

Legal Consultation

AED 5,000 – AED 20,000

Working Capital

You are expected to set aside 6-12 months of operating costs.

Hidden Expenses

Transport, wastage, equipment failure and staff turnover.

Projected Cost of Completion Breakdown

1. Small Café

Cost: AED 300,000 – AED 700,000

2. Mid-Size Restaurant

Cost: AED 700,000 – AED 1.5 million

3. Fine Dining

Cost: AED 1.5 million – AED 5 million

The ROI usually is 12-24 months in the fields of location, branding and efficiency.

Dark Secrets of Minimizing the Cost of Setting Up a Restaurant in Dubai

• Select the jurisdiction (mainland/free zone) appropriately.

• Seek the advice of business setups in Dubai on cost-saving measures.

• Look at a cloud kitchen to reduce overheads.

• Early negotiation with vendors.

• Develop a practical budget and work with it.

Conclusion

The idea of opening a restaurant in Dubai is a great and exciting opportunity, one that can be rewarding, but it has to be planned, financially conscious,planned and and it has to adhere to the legal regulations. From the cost of licensing and rental fees to staffing, marketing, and the cost of fitting out, every detail is added to your total budget.

The appropriate assistance of professionals in the company formation in Dubai, licensing, and strategy planning will help you transform your dream concept of F&B into a successful business.

To provide the full support, we provide the end-to-end support at Bizex to ensure that your process of restaurant setup is not complicated.

Contact Bizex now in case you are willing to proceed one step further.

FAQs:

1. How much does it cost to open a small café in Dubai?

A small café typically costs AED 300,000–AED 700,000, depending on location and concept.

2. Do I need a trade license to open a restaurant in Dubai?

Yes. All F&B outlets must obtain a business trade license in Dubai and relevant food safety approvals.

3. Are business setup consultants necessary for restaurant setup?

While not mandatory, they make the process faster, more efficient, and cost-effective.

4. What is the cost of hiring restaurant staff in Dubai?

Staffing costs usually range from AED 25,000 to AED 80,000 per month, depending on staff size.

5. How long does it take to open a restaurant in Dubai?

With proper planning, it may take 2 to 6 months, depending on licenses, fit-out work, and location approvals.