How Profitable is a Restaurant Business in Dubai?

[vc_row][vc_column][vc_column_text]Dubai is a hotbed of tourists and expats. Its cultural diversity has been the primary reason for the growth of restaurants in the city. The wide range of cuisines it offers has something to please everyone’s palette, which is why people often like to spend time at restaurants with family and friends. Weekends and Islamic holidays are the busiest days for restaurants and buffets, especially during the holy month of Ramadan when many locals like to enjoy a restaurant meal after a day of fasting. Besides, working individuals also prefer frequenting restaurants for their meals instead of preparing food at home. The main reason for this is the convenience it offers. People leading busy lifestyles don't often have the time or inclination to cook. As such, the rise in popularity of eateries in Dubai highlights some clear trends in the restaurant industry. Dubai Statistics Center (DSC) released data that showed that restaurants produce services worth nearly 20 billion dirhams, making it one of the most lucrative businesses. The industry is thriving and is only expected to get bigger with the nature of Dubai’s population structure and its attractiveness as a preferred tourist destination.

Favourable trends for the restaurant industry growth in Dubai

Dubai is seen putting many new restaurateurs on the culinary map as a result of its business-friendly environment, favourable policies and high growth prospects for restaurant businesses. Some of the notable growth trends observed in the restaurant industry are as follows.

1. Top global food destination

   Dubai is a city where approximately 7 million tourists visit each year. This large potential customer base provides lucrative opportunities for starting a restaurant business and serving a diverse population.

2. Niche markets offer growth prospects

   Changing consumer preferences such as vegetarianism, veganism, and gluten-free diets have, in turn, brought about a shift in the restaurant industry. Such niche markets are experiencing rapid demand and offer potential business opportunities. The2018 Gulfood Global Outlook Report Health and Wellness Trends revealed an increase in demand for organic, healthy and environment-friendly food.

3. Increasing disposable income of the population

   There is a growing dine-out preference and increasing expenditure on recreational activities observed among Dubai consumers, especially the youth. In fact, surveys have revealed that consumers in the city are generally observed to be comfortable paying a premium price for quality food.

4. Growth potential through partnerships with hotels

Dubai being a tourist hub and exclusive towards hospitality is seeing another trend in the industry where restaurant start-ups can enter with ease. Nowadays, an increasing number of hotels are looking to partner with restaurants to offer a holistic hospitality experience to their guests.

Read more on: Why to Setup a Restaurant Management Business in Dubai Mainland?

Dubai is a land of booming opportunities for restaurateurs. And we are here to help you take your first step towards it. At Flying Colour Business Setup Services, we provide a simple and effortless approach for setting up your business in Dubai. If you are interested, reach out to us at +971 4 4542366 or email us at info@flyingcolour.com. *Please Note: This article was published on 31st May 2021. The information provided in the article is based on the policies and rules applicable at the time of writing it. Talk to one of our consultants for any recent update or change.[/vc_column_text][/vc_column][/vc_row]