Do you want to start a restaurant business in Dubai? If YES, here is a complete sample restaurant business plan template and free feasibility report for Dubai.
Dubai is one of the topmost destinations for business people and investors in the whole of the Middle East. The government policy and state-of-the-art infrastructures support the growth of small businesses as well as large corporations.
Business opportunities in Dubai are not just open to the citizens of United Arab Emirate, but also to foreign investors as well. As a matter of fact, the foreign investors are wooed into Dubai because the presence of foreign business is a major boost to the economy of the country.
There are many free trade zones in Dubai and that is why commerce and trade is at its peak. People come from far and wide to shop in Dubai because goods are sometimes cheaper there. The bottom line if that when people visit Dubai, they tend to eat in restaurants hence starting a restaurant business in Dubai can prove to be quite profitable.
If you intend starting your restaurant business in Dubai, then you must ensure that you play by the books or else you will lose your investment. Below is a sample restaurant business plan template for Dubai that can help you to successfully write your own.
A Sample Restaurant Business Plan Template for Dubai
1. Industry Overview
Dubai restaurant industry is a thriving industry because per capita food spend in the UAE is among the highest in the world, at $3,159 in 2015, 32 percent higher than in the US (excluding alcohol), and about the same as the average person’s spend in Kuwait and Qatar combined.
As spend on food eaten in restaurant moves in line with the economy and population, a portion of the high value spend on food by Emiratis is explained by their high net worth — and by the fact that visiting malls and dining out are the primary sources of entertainment for many in the region.
Although at a population of 10.1 million, the UAE population is small, but with increase in tourists visit, there is always a boom in the restaurant industry.
The distribution of restaurants and people, however, is not even, with a heavy concentration of food service establishments in Dubai causing a high saturation rate in that market. Dubai has close to 260 people per restaurant (compared to 320 people per restaurant in the US).
In spite of the economic challenges brought on by sagging oil prices, many UAE restaurant operators continue to thrive. Consumer foodservice industry is close to $15 billion — and one with an attractive long-term outlook.
Despite the fact that there loads of big, medium and small-scale players in the restaurant industry, there’s still a lot of room for growth among UAE restaurant chains (and those looking to expand into new markets). In the UAE, the share of spend on food away from home (i.e. restaurants) is lower than that of other developed countries.
The US, for instance, is near to a 50 percent-50 percent split between restaurants and groceries. The breakdown in the UAE, meanwhile, is 46.7 percent restaurants, 53.3 percent groceries — but that split is set to weigh heavier for restaurants, and at an accelerated pace, over time.
There’s also potential for the growth of certain cuisines and segments. Chained foodservice, for instance, is under-developed:
While in the US and Canada, the share of chained foodservice has remained stable over the last few years (at around 54 percent of the restaurant industry). In countries like the UAE and KSA, the market potential for the expansion of chains ranges from $4.3 billion to $5.1 billion annually.
In the United Arab Emirates, the full-service restaurants are fragmented in terms of cuisines, formats, and price point, with a diversity of casual and fine dining options. Chained full-service restaurant sales are growing 1.8 times as fast as independents. The share of chains is set to grow to 19 percent in 2023 (from 16 percent in 2016).
It might interest you to know that UAE Restaurants industry has minimal barriers to entry, with minimal startup capital and no specific licensing requirements.
On the other hand, the high level of competition and market saturation in a declining industry can prove challenging to aspiring entrepreneurs who want to start their own restaurants in Dubai. Most players in the restaurant line of business in Dubai are small – to medium – size establishments that cater to the local and international community.
2. Executive Summary
Al Amirah® Restaurant, Inc. is a registered restaurant business that will be located at Dubai Marina – Dubai. We have been able to lease a facility along a major road that is big enough to fit into the kind of classy and intercontinental restaurant that we intend launching and the facility is located in corner – piece property between the Palm Jumeirah and Dubai Marina.
Al Amirah® Restaurant, Inc. will be involved in full-service dining of local and intercontinental delicacies, beverage sales and take-out meals.
We know that that there are several large and small restaurants all around Dubai Marina, which is why we spent time and resources to conduct our feasibility studies and market survey so as to offer much more than our competitors will be offering. We have self – service options for our customers, and our outlet has various payment options.
We are aware of the trend in the restaurant/fast food industry in UAE and we are not only going to operate a system where our customers would have to come to our restaurant to make a purchase, but we will also operate an online service so our customers can place orders online.
Al Amirah® Restaurant, Inc. will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable international business practices wherever possible.
We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.
Our plan is to position our restaurant to become one of the leading brands in the industry in the whole of Dubai, and also to be amongst the top 5 restaurant chains in the United Arab Emirates within the first 10 years of operation.
This might look too tall a dream but we are optimistic that this will surely be realized because we have done our research and feasibility studies and we are confident that Dubai Marina – Dubai is the right place to launch our restaurant.
Al Amirah® Restaurant, Inc. is a family business that is owned by Mrs. Al Amirah and her immediate family members. Mrs. Al Amirah is an intercontinental chef cum food maven, she has a B.Sc. in Hotel Administration, with over 10 years experience in the restaurant and fast food industry.
Although the business is launching out with just one outlet in Dubai Marina – Dubai, but there is a plan to open other outlets all around Dubai Marina and in other key cities in the United Arab Emirate.
3. Our Products and Services
Al Amirah® Restaurant, Inc. is in the Restaurants industry to make profits and we will go all the way to make available well – prepared local and intercontinental delicacies for our clients. We are prepared to make profits from the industry and we will do all that is permitted by the law in the United Arab Emirates to achieve our business goals, aim and ambition.
4. Our Mission and Vision Statement
- Our vision is to become the leading restaurant in Dubai Marina – Dubai and to establish a one stop restaurant in other cities in the United Arab Emirates.
- Our mission is to establish a Restaurant business that will make available varieties of well – prepared Local and intercontinental delicacies at affordable prices.
Our Business Structure
Our intention of starting a restaurant business is to build a standard restaurant in Dubai Marina – Dubai. Although our restaurant might not be as big as that of leading players in the industry, but will ensure that we put the right structures in place that will support the kind of growth that we have in mind.
We will ensure that we hire people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all our stakeholders. As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more.
In view of that, we have decided to hire qualified and competent hands to occupy the following positions;
- Chief Executive Officer (Owner)
- Restaurant Manager
- Human Resources and Admin Manager
- Sales and Marketing Manager
- Information Technologist
- Accountants / Cashiers
- Waiters / Waitress
- Van Drivers / Deliverers
5. Job Roles and Responsibilities
Chief Executive Officer – CEO (Owner):
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
- Accountable for fixing prices and signing business deals
- Responsible for providing direction for the business
- Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
Admin and HR Manager
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Defines job positions for recruitment, and managing interviewing process
- Carries out induction of new team members
- Accountable for training, evaluation and assessment of employees
- Responsible for arranging travel, meetings and appointments
- Oversees the smooth running of the daily office activities.
- Responsible for managing the daily activities in the restaurant
- Ensures that the restaurant facility is in tip top shape and conducive enough to welcome customers
- Interfaces with third – party providers (vendors)
- Reports to the Chief Executive Officer
- Attends to Customers complains and enquiries
- Prepares budget and reports for the organization
- Any other duty as assigned by the CEO
- Responsible for preparing different Local and intercontinental delicacies as requested by our clients
- Makes lists and budget for cooking supplies
- Oversee the entire cooking process
- Responsible for training new cooks
- Makes sure that quality is maintained at all times
- Responsible for purchasing food ingredients for the organization
- Ensures that the kitchen is kept clean at all times
- Ensures that all kitchen wares are kept at their proper position after use.
- Any other duty as assigned by the Restaurant Manager.
Sales and Marketing Manager
- Manages external research and coordinate all the internal sources of information to retains the organizations’ best customers and attract new ones
- Models demographic information and analyze the volumes of transactional data generated by customer purchases
- Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
- Identifies development opportunities; follows up on development leads and contacts
- Documents all customer contact and information
- Represents the company in strategic meetings
- Helps increase sales and growth for the company
- Manages the organization’s website
- Handles ecommerce aspect of the business
- Responsible for installing and maintenance of computer software and hardware for the organization
- Manages logistics and supply chain software, Web servers, e-commerce software and POS (point of sale) systems
- Manages the organization’s CCTV
- Handles any other technological and IT related duties.
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensuring compliance with taxation legislation
- Handles all financial transactions for the organization
- Serves as internal auditor for the organization
- Promptly attends to customers in a friendly and professional manner
- Ensures that un-occupied tables are always set and ready for customers
- Handles any other duty as assigned by the Restaurant manager
- Delivers customer’s orders promptly
- Deliver correspondence for the restaurant
- Runs errand for the organization
- Any other duty as assigned by the manager
- Responsible for cleaning the restaurant facility at all times
- Ensures that toiletries and supplies don’t run out of stock
- Handles any other duty as assigned by the restaurant manager.
6. SWOT Analysis
We are quite aware that there are several restaurants in Dubai Marina – Dubai and even in the same location where we intend locating ours, which is why we are following the due process of establishing a business. We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be equipped to confront our threats.
Al Amirah® Restaurant, Inc. employed the services of an expert HR and Business Analyst with bias in the restaurant business to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives. Here is the summary of the SWOT analysis that was conducted for Al Amirah® Restaurant, Inc.;
The location of our business, the business model we will be operating on, varieties of payment options, wide varieties of local and intercontinental delicacies, our excellent customer service culture, etc. will definitely count as a strong strength for Al Amirah® Restaurant, Inc. Also, we have a lot of professional intercontinental chefs under our pay role and a management team that has what it takes to grow a new business to profitability within record time.
For a business like ours, a major weakness that we will be dealing with is the normal teething stages that a new business goes through.
Dubai a city with a huge number of tourists, and lovers of local and intercontinental delicacies provide us with vast opportunities. Restaurant operators’ top line is significantly impacted by tourism (both in terms of number of tourists and their composition) and we are positioned to leverage on this.
Aside from high staff attrition and labor cost, steady increase in rent is one major threat that we are likely going to face. The average cost of opening a small, independent restaurant in Dubai ranges from AED 500,000 to AED 1.25 million depending on the size and format.
Even these figures are based on restaurant space ranging from 500 sqm to 1,200 sqm only. Moreover, 78 percent of money outflow of the restaurant business comprises of capital costs, rent and working capital. Thus, high rentals are the biggest and the most upfront challenge that we will face in the restaurant industry in Dubai.
7. MARKET ANALYSIS
- Market Trends
A recent trend in the restaurant industry in Dubai shows that the several new malls, hotels, airports and neighborhood expansions as well as theme parks and sports stadiums all offer local restaurant operators the opportunity to enter new markets or explore franchise opportunities.
Despite the fact that competition remains fierce all across Dubai, restaurateurs looking to expand in this market should take steps to develop their brands with strong product differentiation and invest in technologies that keep costs low and attract new customers.
While continued domestic investments are likely to cushion the UAE restaurant industry from any major shifts in oil prices or the geopolitical landscape, the market will nevertheless remain challenging for operators in the near future.
To withstand this oversaturation, restaurant operators are advised to focus their efforts on building a strong brand and identifying their unique position. Strategic advertisements, both physical and digital, can help attract new customers and that is the current trend in Dubai.
8. Our Target Market
We are aware of the fast-growing patronage of local and intercontinental delicacies in the United Arab Emirates and this trend is not going to abate anytime soon and loads of entrepreneurs are leveraging on this.
In view of that, we have positioned our restaurants to service the residence of Dubai Marina – Dubai and every other location where our chains of restaurants will be located in key cities all over the United Arab Emirates. We have conducted our market research and we have ideas of what our target market would be expecting from us. We are in business to retail our local and intercontinental delicacies to the following groups of people;
- Corporate Organizations
- Corporate Executives
- Business People
- Sports Men and Women
Our competitive advantage
Dubai and the United Arab Emirates in general is not just one of the most lucrative markets for the restaurant industry in the world; it is also one of the most competitive markets. The bright side to this is that since the market is saturating, service providers are coming up with more sophisticated ideas, different trends are being born and consumers have no shortage of choice.
The unwelcoming side is that the restaurant industry in Dubai, Abu Dhabi and the rest of the UAE is also confronted with challenges, now more than ever before.
Our ability to control stock on hand and come up with unique meals at short – notice, our ability to quickly adopt new technology and of course our easy access to multi – skilled and flexible workforce are part of the competitive advantage that we will be bringing to the table.
Al Amirah® Restaurant, Inc. is launching a classy intercontinental restaurant that will indeed become the preferred choice of residents and visitors to Dubai Marina. Our restaurant is located in a corner piece property on a busy road directly opposite one of the largest shopping malls in Dubai Marina. We have enough parking space that can accommodate over 25 cars per time.
One thing is certain, we will ensure that we have wide varieties of local and intercontinental delicacies, beverages and coffee et al available in our restaurant at all times. Our excellent customer service culture, online store, various payment options and highly secured facility will serve as a competitive advantage for us.
Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the restaurant/fast food industry in Dubai, meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.
9. SALES AND MARKETING STRATEG
- Sources of Income
Al Amirah® Restaurant, Inc. is in business to retail a wide variety of local and intercontinental delicacies, coffee, non-alcoholic drink and water to the residence and visitors of Dubai Marina-Dubai and that is exactly our sources of incomes.
10. Sales Forecast
One thing is certain when it comes to restaurants, if your restaurant is centrally positioned, you will always attract customers cum sales and that will sure translate to increase in revenue generation for the business.
We are well-positioned to take on the available market in Dubai Marina – Dubai and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six month of operation and grow the business and our clientele base.
We have been able to examine the Restaurants industry, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to startups in Dubai Marina.
- First Fiscal Year: 920,000 AED
- Second Fiscal Year: 1.8 Million AED
- Third Fiscal Year: 3.3 Million AED
N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
- Marketing Strategy and Sales Strategy
Prior to choosing a location for Al Amirah® Restaurant, Inc., we conducted a thorough market survey and feasibility studies in order for us to penetrate the available market.
We hired experts who have good understanding of the restaurant industry in Dubai to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the population. In a nutshell, Al Amirah® Restaurant, Inc. will adopt the following sales and marketing approach to win customers over;
- Open our restaurant in a grand style with a party for all.
- Introduce our restaurant business by sending introductory letters alongside our brochure to corporate organizations, travel and tour companies, households and key stake holders in and around Dubai Marina
- Ensure that we make wide varieties of local and intercontinental delicacies in our restaurant at all times.
- Make use of attractive hand bills to create awareness and also to give direction to our restaurant
- Position our signage/flexi banners at strategic places around Dubai Marina – Dubai and Palm Jumeirah
- Create a loyalty plan that will enable us reward our regular customers
11. Publicity and Advertising Strategy
Regardless of the fact that our restaurant is well located, we will still go ahead to intensify publicity for the business.
Al Amirah® Restaurant, Inc. has a long – term plan of opening chains of classy restaurants in various locations all around Dubai and key cities in the United Arab Emirates which is why we will deliberately build our brand to be well accepted in Dubai Marina before venturing out.
Here are the platforms we intend leveraging on to promote and advertise Al Amirah® Restaurant, Inc.;
- Place adverts on community – based newspapers, radio and TV stations.
- Encourage the use of word of mouth publicity from our loyal customers
- Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook, Twitter, LinkedIn, Snapchat, Google+ and other platforms to promote our business.
- Ensure that our we position our banners and billboards in strategic positions all around Dubai Marina – Dubai
- Distribute our fliers and handbills in target areas in and around Dubai Marina and Palm Jumeirah
- Advertise Al Amirah® Restaurant, Inc. business in our official website and employ strategies that will help us pull traffic to the site
- Brand all our official cars and delivery vans and ensure that all our staff members wear our branded shirt or cap at regular intervals.
12. Our Pricing Strategy
Our pricing system is going to be based on what is obtainable in the restaurant industry in Dubai, we don’t intend to charge more and we don’t intend to charge less than what our competitors are charging per meal. Be that as it may, we have put plans in place to offer discounts once in a while and also to reward our loyal customers especially when they come in as a group.
We are aware that there are contracts to supply local and intercontinental meals at events organized by government, corporate organizations or international communities; we will ensure that we abide by the bidding pricing template when we bid for such contracts.
- Payment Options
The payment policy adopted by Al Amirah® Restaurant, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United Arab Emirates.
Here are the payment options that Al Amirah® Restaurant, Inc. will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via credit cards
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
In view of the above, we have chosen banking platforms that will enable our client make payment for meals and drinks purchase without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.
13. Startup Expenditure (Budget)
From our market survey and feasibility studies, we have been able to come up with a detailed budget of establishing a standard and world class Restaurant. These are the areas we are looking towards spending our startup capital on;
- The total fee for registering the business in the United Arab Emirates (Free Trade Zone) – 17,500 AED.
- Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – 15,200 AED.
- Marketing promotion expenses for the grand opening of Al Amirah® Restaurant, Inc. LLC in the amount of 14,000 AED and as well as flyer printing (2,000 flyers at 0.19 AED per copy) for the total amount of – 12,000 AED.
- The cost for hiring business consultant – 10,000 AED.
- The cost for insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – 9,600 AED.
- The cost for payment of rent for 12 months at per square feet in the total amount of 1.2 million AED
- The cost for construction of a standard Restaurant and kitchen – 500,000 AED
- Other start-up expenses including stationery (2,000 AED) and phone and utility deposits (10,000 AED).
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – 400,000 AED
- The cost for start-up inventory (cooking ingredients, alcoholic drinks, soft drinks, beverages, coffee and serving wares et al) – 320,000 AED
- Storage hardware (bins, rack, shelves, food case) – 16,000 AED
- The cost for counter area equipment (counter top, sink, ice machine, etc.) – 33,500 AED
- The cost for store equipment (cash register, security, ventilation, signage) – 52,300 AED
- The cost of purchase of delivery vans – 215,000 AED
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – 16,450 AED.
- The cost of launching a website – 2,400 AED
- The cost for our opening party – 40,000 AED
- Miscellaneous – 50,000 AED
We would need an estimate of 3.2 million AED to successfully set up our Restaurant in the United Arab Emirates.
Generating Startup Capital for Al Amirah® Restaurant, Inc.
Al Amirah® Restaurant, Inc. is a private business that is solely owned and financed by Mrs. Al Amirah and her immediate family members. They do not intend to welcome any external business partners which is why she has decided to restrict the sourcing of the startup capital to 3 major sources.
These are the areas we intend generating our startup capital;
- Generate part of the startup capital from personal savings
- Source for soft loans from family members and friends
- Apply for loan from the bank
N.B: We have been able to generate about 1.2 million AED (Personal savings 1 million AED and soft loan from family members 200,000 AED) and we are at the final stages of obtaining a loan facility of 2 million AED from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.
14. Sustainability and Expansion Strategy
The survival and viability of any business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and the business structure. If all of these factors are missing from a business, then it won’t be too long before the business closes shop.
One of our major goals of starting Al Amirah® Restaurant, Inc. is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to retail our Local and intercontinental delicacies a little bit cheaper than what is obtainable in the market and we are prepared to survive on lower profit margin for a while.
Al Amirah® Restaurant, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.
We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
- Business Name Availability Check: Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Leasing of facility and remodeling the facility to fit into a standard Restaurant: In Progress
- Conducting Feasibility Studies: Completed
- Generating capital from family members: Completed
- Applications for Loan from the bank: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Printing of Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of the needed furniture, kitchen appliances, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business both online and around the community: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Opening party planning: In Progress
- Compilation of our list of products that will be available in our shop: Completed
- Establishing business relationship with vendors – suppliers of cooking ingredients, coffees, and soft drinks – In Progress.