As the growing demand for new restaurants, cafes and nightclubs in the UAE show no signs of abating, it’s imperative for new companies in this sector to profitise quickly by optimising and managing their sales flow; all of which can be done by POS system. So, the chances are you might be wondering how to start a restaurant in Dubai (or any other city in UAE).
You love chatting to new people, you’re a pro at crafting food and drinks, and you don’t feel the 9-to-5 life is for you.
Well, a restaurant, cafe and nightclub are not hobbies. They are businesses. It’s important to keep this in mind because many of these establishments lose money at a phenomenal rate before going out of business entirely.
To give your business the best chance of success, here is your 8-point checklist for getting you started:
1# Write your business plan
A failure to plan is a plan to fail.
A restaurant, cafeteria or nightclub is a type of business where a lack of initial planning can be expensive — if not impossible — to remedy. That’s why it’s essential to have a business plan in place.
The minor details aren’t significant since they’re likely to change over time.
Remember that writing out a business plan can help identify holes in your initial business model that can be fixed before you open your business and reduce the likelihood of failure.
2# Which business structure
When starting any new company or business, one of the first key decisions you will make is how to structure your business. Specifically, do you plan to be a sole proprietorship, a partnership, or a corporation?
It’s arguably easier to become a sole trader or a partnership, but one concern with this is that you’re personally liable for lawsuits and debt incurred by your establishment. If something goes awry, there are no limits to your liability so you may need to forfeit personal assets to cover a loss should one occur.
So think carefully.
3# Obtain the proper licenses
It’s essential that your establishment be adequately licensed before you open for business to avoid legal trouble.
Licenses are required to serve alcohol, food and even to play music in your establishment. Some of these are easy to obtain, whilst others more complicated. Many cost money and time.
Not acquiring the proper license is a stupid mistake that can cause your establishment to close down, so don’t skip this step.
4# Choosing the right location
Location is everything. Do you plan to open a restaurant in Dubai or Abu Dhabi? Here are a few things to consider before choosing the right spot for your business:
- Style – Are you formal, hippy, elegant, casual? Elegant? Casual? This will appeal to certain customers you are looking to attract.
- Demographics – Different areas of the UAE appeal to different demographics. Think expats, locals, students and so on. Who is your market?
- Rent and Utility Costs – Can you afford to open an establishment here? Yes, you may want more affluent customers, but if the operating costs initially outpace your profits, your establishment will be out of business in no time at all.
- Zoning Restrictions – Is it permitted to serve certain products, like alcohol in some regions of the UAE?
- If you’re looking to attract higher-class customers, set up your establishment in the more affluent parts of UAE cities.
- Parking & Accessibility – If you’re attracting tourists, parking is less of an issue since they’re likely to wander into your establishment. Yes, tourists are unlikely to be repeat customers. Retaining custom needs to be easy for them to return.
5# Design your establishment
As stated previously – style is very important. People go out for atmosphere and to socialise, so selecting the right music, décor, and furniture is critical.
Make sure your everything works together. Don’t open an Irish pub and play the latest disco tunes – this simply will not create the right atmosphere.
6# Implement your workflows
How will you manage your restaurant, cafe or nightclub?
How will you accept payment and ensure that you are ordering enough food and beverages to satisfy demand?
Choosing the right point of sale system will help you map your needs and streamline your long-term costs. You are probably not starting a restaurant for one year but it is your long-term goal and that’s why you should consider using restaurant POS system to make your business grow more easily.
7# Hire your staff (if required)
Who is going to help you serve your customers?
Who will match your high standards for customer service?
You’ll need to find and retain the right staff to get your business running and off the ground making profit. Do you hire experienced staff that ultimately cost more or newer, younger hires that you’ll most likely need to train yourself?
Getting your team right is vital to launching your restaurant, cafe or nightclub.
8# Launch!
The day has finally come!
It’s time to open your establishment!
Don’t merely open the doors and expect customers to run in like a queue on black Friday in the USA.
Launch some social media ads targeting your local demographic, offer promotions for the opening day or night, write in a local newspaper or online that you are having a launch party so that you create some buzz.
This will not only give your establishment a great opening night of business but a memory that people will find hard to forget.
Words: David Bailey-Lauring
Want some tips of how to start a restaurant in Dubai (or anywhere else in UAE)?
Ask our specialist Marc for more info +971 50 566 5278 or write [email protected]
