Guide to food truck business and license

Guide to food truck business and license

Dubai’s foodservice sector has been growing for a while. Simply put, eating out is a national pastime for us. And the evidence is in the sector. The market for foodservice in the UAE is anticipated to expand by 5% between 2019 and 2024.

This demand for catered meals is influenced by a number of factors. There is a sizable, wealthy expat population in the UAE, and Dubai in particular, with above-average disposable income. Additionally, the emirate welcomes more than ten million visitors each year.

Additionally, there is a tonne of business outside of restaurants and upscale dining establishments. Food trucks are one of the foodservice sectors in Dubai that are expanding the quickest.

If you’ve spent any time around here, you’ve probably noticed that they’ve been springing up in large numbers recently and serving delectable food from all over the world.

In Dubai’s food scene, food trucks are a wonderful option because they have cheaper operating costs and a quicker time to market than a traditional brick and mortar restaurant. Additionally, starting a food truck business with the assistance of a local expert in company creation can be a quick and simple process.

Advantages of opening a food truck restaurant in Dubai

High demand, a thriving food scene, inexpensive startup expenses, and a low tax rate. In Dubai, there are so many fantastic reasons to launch a food truck business.

1. Food trucks require less investment.

A food truck is regarded as a highly profitable food business idea, mostly because it requires significantly less capital than a sit-down restaurant. Running a food truck as opposed to a traditional restaurant has this edge over the competition since the money you save on setup can be put towards other activities like marketing or menu planning. The only significant expense is purchasing your truck, which can easily be avoided by taking use of the expanding food truck rental industry.

2. Food Trucks Have Comparably Low Operating Costs

Owning a restaurant entails spending a lot of money on utilities, hiring a variety of staff members, such as chefs, cashiers, waiters, kitchen managers, cleaners, etc., and paying property taxes, if you are the property owner, or monthly fees, if you are renting the property. Therefore, it becomes crucial for you to control your operating expenses, especially since hidden expenses could be draining your restaurant’s resources.

3. Staffing Costs Are Lower for Food Trucks

Due to limited space, food trucks often employ a small staff. Food trucks’ menu options are limited compared to restaurants that may serve a variety of cuisines because they typically only sell fast food. The price of hiring many cooks is reduced as a result. In addition, unlike in restaurants, there are no regulations for hiring hosts and staff members who wait/clean tables.

Consequently, a food truck business can usually get by with a chef and 1-2 multi-tasking servers. However, at peak hours, this might increase to 4-5, however such staffing requirements can be satisfied by temporary or part-time employees. Lower payroll expenses as a result boost profit margins.

In Dubai, what it takes to launch a food truck business

Partnering with a local firm setup agent is the first step before beginning a food truck business in Dubai.

The complete company registration, licence, and visa process can be handled by top business setup Dubai consultants on your behalf.

We’ll start by assisting you with selecting and registering the name of your business while making sure it complies with UAE naming regulations.

Your firm name cannot contain any derogatory or blasphemous words or any allusions to Allah or Islam. You must use your name in its entirety rather than just your surname or initials if you want your company name to contain your name. Additionally, you need to confirm that your desired name is open for registration.

The process of applying for your trade licence will then start. Typically, you’ll need to submit copies of your passport, a business plan, and an application. Before submitting your application, we’ll check that any supporting documentation is complete and accurate.

You must submit an application for the HACCP (Hazard Analysis Critical Control Point) hygiene and safety certification in addition to the food truck licence. You need a HACCP certificate for both the location where your food is prepared and the location where it is sold, such as off-site and from a truck.

Additionally, you will require licences to conduct business from the Dubai Electricity and Water Authority and the Roads and Transport Authority (RTA) (DEWA).

Finally, you must adhere to the UAE Food Code if your company is involved in catering in the UAE. This encompasses all guidelines for food preparation and storage, as well as requirements for ventilation, doors and windows, and all kitchen and laundry appliances.

Applications for visas and bank accounts

Before you can conduct unrestricted trade in the UAE, there are still a few steps to complete.

You will initially require a visa. You must go to an immigration centre to provide biometric data as part of this process. A fitness exam, blood test, and chest x-ray are additional requirements for applying for a visa.

You can sponsor your partner, parents, or children for a UAE visa as long as you meet the salary requirements.

A corporate bank account is the last prerequisite before you can begin trading in the UAE. For international business owners, creating a bank account can be a challenging process; as such, it is recommended to submit your application with the assistance of a local specialist.

Cost of launching a food truck business in Dubai

Without access to a thorough business strategy, estimating the startup costs for a food truck business is never simple. The total amount is made up of a number of elements.

You should budget between AED 11,500 and AED 25,000, depending on how many visas you need. You also need to budget for things like permits, transportation, equipment, and rent for your pitch, to name a few.

Total startup costs for food truck enterprises vary greatly depending on all these variables. A realistic range would be between AED 35,000 and AED 60,000. Check out the cost for food truck business in Dubai

Employing Business Consultants

In the UAE, the procedure for forming a corporation has been made as straightforward as possible. Having saying that, it does require a thorough understanding of the area and its numerous traditions and laws.

To find the most appropriate licence and setup type for your business depending on your requirements and budget, it is always good to hire the services of a UAE business setup company. They can not only provide advice on the procedure.

When you engage with OnTime Business consultants, we’ll help you navigate the most recent changes to governmental rules governing food truck enterprises as well as manage the full incorporation process for you. Request a quote today for something unique.

We’ll give you the assurance that there are no mistakes or omissions in your licence and visa applications, both of which can result in delays or rejection.

All you need to submit is some simple paperwork and details about the nature of your company. After that, just relax and let the professionals do the rest, including organising your licence and visa applications, liaising with the necessary agencies, company registration in Dubai and reporting back when you’re ready to begin trading. That’s how easy it is.

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