How Much Does It Cost to Open a Restaurant in Abu Dhabi?

The guidelines and cost for opening a restaurant vary depending on the demographics, but the fundamental concept and approaches essentially stay the same.

This manual not only helps you to determine the best way to open a restaurant, and yet you may also pick up a thing or two from it, so take it as a double-quoted almost.

Like opening a restaurant anywhere else in UAE, there are similar steps to take in Abu Dhabi.

You must apply for a business license, register your institution with the local government, and obtain an operating license.

You will have an idea of the approximate cost required to open an eatery in Abu Dhabi in this article.

Here is also some detail about how long this process might take and what paperwork you’ll need to get started.

First, Integrate Your Abu Dhabi Restaurant License

In the UAE, the food and beverage industry has experienced impressive growth.

The sector’s outlook is excellent, and it is predicted that it will grow by 5.22% in the coming years.

It’s crucial to have an eatery license if you want to profit from the restaurant industry.

How much does the Abu Dhabi restaurant license cost?

A restaurant license can be obtained easily and the package prices start at AED 9,600.

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A Trade license can be purchased for anywhere between 40,000-30,000 AED.

The kind of restaurant you plan to own and run over the next few months will also affect this cost.

Documents Needed for Business Registration in Abu Dhabi

LLC Requirement for the Mainland (Individual)

  1. Passport copy, Emirates ID, Work ID
  2. Tourist visa/ Emirates ID

Documents required for LLC (Corporate Ownership)

  1. Trade license/ Certificate of Incorporation for the Parent Company
  2. A true copy of the company’s articles of incorporation
  3. A Copy of Emirates ID or passport
  4. Power of Attorney for the Manager/ Representative

Cost to Open a Restaurant in Abu Dhabi, UAE

It can be expensive to open a restaurant in UAE. You will require anywhere between AED 500,000-AED 1 million or more, based on the size and category of the restaurant you want to open.

There might be extra costs related to acquiring licenses or permits needed by the municipal authorities for you to legally operate your business.

It’s not that easy to launch a restaurant business. Starting a restaurant business from scratch requires commitment, a lot of time, hard work, and money as well.

Here, we’ll look at the most typical expenses that all eateries, cafes, or other food businesses will have to deal with in the beginning.

These price examples are primarily thought of as averages and are based on references in Abu Dhabi, United Arab Emirates.

Factors Influencing Costs in the Food and Beverage Sector

Many aspects may interfere with the startup cost of a restaurant.

Some of the major factors are the location of the restaurant, the type of business (fast food/full-service/cafeteria/bar) and market conditions, pricing for suppliers etc.

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Let’s Examine the Major Categories of Start-up Expenses for a Restaurant in the UAE:

  • Initial Fixed Costs
  • Interior Designer
  • Kitchen Appliances (Grills/Fridges/Oven)

Initial Operational Costs:

  • Licenses and official endorsements
  • Costs of occupancy and rent
  • Registration fees for workers
  • Employee lodging expenses
  • Budget for the initial inventory and advertising

To make the data more useful, a put-together table is given below that includes the typical price per square foot for each of the aforementioned categories.

Assuming we can locate a retail outlet for food and drink that is 140 square meters in size and rents for AED 60,000. The approximate costs to open an eatery in UAE:

Segments The approximate cost (AED)
Fixed startup cost

Kitchen equipment

Furniture, fixtures and other equipment

500,000

300,000

30,000

Operational startup cost

Licenses and Govt. approval

Rent and occupancy cost

Employee salaries

Advertising and marketing budget

285,000

9,600

60,000

120,000

7,500

Total cost 500,000-AED 1 million approximately

Additionally, you need to know who your target market is and how much it will cost to open a restaurant in Abu Dhabi.

You must align your shots in a specific bracket to see how your restaurant business performs.

At least 400000 to 500000 AED are necessary to open a restaurant, though the amount varies depending on the size and type of establishment.

How to Launch a Unique Idea Restaurant in UAE

Speaking of uniqueness, this entire process is described as one of your restaurant’s possible USPs (Unique Selling Points).

It will help the entrepreneur to gain an advantage because they are a significant component of starting an eatery in UAE or anywhere else in the world.

Because of the industry’s extreme levels of competition, new food business startups typically fail within a few months.

Some specific aspects that one should count before planning an eatery business are:

  • The ambience of the restaurant
  • Food Menu
  • General Servicing Protocols

The aforementioned three categories will assist you in developing your distinctive style, the food options available to your consumers, and your ability to serve them quickly.

The cost element related to each of the aforementioned scenarios is crucial in this whole mess.

The ambience is a product of architecture that is related to the sum of money you plan to invest in learning how to start a restaurant in Dubai.

Conclusion

Many individuals working in the food industry are interested in learning how to open a restaurant in Abu Dhabi due to the UAE’s booming economy or policies that encourage new investment.

Depending on the kind of eatery, there may be more than one correct answer to any query on cost.

If you’re opening a casual dining establishment, make sure the community will support your idea.

You will be faced with a plethora of difficult choices when deciding how else to open a restaurant in Abu Dhabi.

This is related to your ability to tolerate adversity and adapt to swift changes.

Although the focus of this guide is on opening a restaurant in UAE, you can still use some of the fundamental ideas to establish your business elsewhere in the world.

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