Food Truck Business in Dubai:
The food business is considered as a majorly profitable business in Dubai. The demand for food truck business is increasing because of the major population of expats and the rise in increase of tourists to Dubai every year. Now, apart from serving people in restaurants, hotels and cafes food truck business has changed its trend, hitting the roads of Dubai and serving people on the streets in the form of food truck. The food provided in this truck is ready to serve. This article will explain all the detail about how to start a Food Truck business in Dubai.
A permit should be obtained from relevant authorities to sell the food and it should be stationed in a place which is approved by the authority. Temporary permits are also issued by the authority for the food trucks for selling during an event or festival upon request.
How to obtain a permit for the Food Truck
As every other business setup in Dubai, the investor needs to obtain prior approvals from concerned authorities (Dubai DED, Dubai Municipality & RTA Dubai) to obtain a food truck business permit.
- In order to set up a food truck business in Dubai, the food truck needs to be backed by a catering or a restaurant license. The business plan needed to be submitted to Department of Economic Development Dubai (DED) for the initial approval.
- In case the investor does not have an existing cafeteria or restaurant, there needs to be a contract between the investor and a central kitchen. In this case, the permit will be issued in the name of the central kitchen and thus most investors choose to form a cafeteria/restaurant of their own.
- You need to purchase a truck and then hire a fit out contractor to design your truck as per the norms of Dubai Municipality (DM) and the layout needed to be submitted to DM to obtain the approval. Only ready-made foods are allowed to be served in food trucks.
- You need to find a suitable location to park your truck and you need to obtain prior approval from the Road Transport Authority (RTA) to to Start a your food truck business in Dubai.
Approvals / Requirements for Food Truck Business Permit
- A valid trade license copy
- Business plan
- Approval from Department of Economic Development Dubai (DED)
- Approval from Road Transport Authority (RTA) (not required if it is inside malls)
- Approval from Dubai Municipality – Food Control Department and Planning Department
Food Truck License Dubai Cost
As mentioned before the business owner need to have a catering or restaurant license in Dubai to obtain a food truck permit.
The license issued for a Restaurant/ Catering services activity will be a professional license and it will cost roughly AED 10,797 ($2945). Also 2.5% of annual rent of the shop/ central kitchen will be the market fees for the license. The shop / central kitchen rental will additional cost and will depends on geographical area and size.
Shop Space Requirements in Dubai
The minimum required shop size will be 700 sq.ft for a restaurant and for catering license the central kitchen size should be minimum 1000 sq.ft
Once the license is issued we need to obtain the permit for the food truck business and the approximate cost for the permit will be AED 5100 ($1390).
The cost for the food truck and its interior fit out will be additional.
Time Frame for Setting up the Food Truck Business
Approximate time frame for setting up the food truck in Dubai will depend upon the clearance from the Dubai municipality relating to the shop and the food truck fit out.
The growth forecasts of food truck business in Dubai are massive as it is expected to grow in the coming years. But at present there are very few people operating in this business resulting in less competition. It’s the right time for you to start the food truck business in Dubai and mark your place in the industry.
Investor Visa Eligibility Criteria
Once the license is issued, eligible to have a maximum of 2 investor visa whose name appears on the MOA in commercial and professional license in Dubai.
The process of setting up food truck business is challenging and requires approval from various authorities. But choosing the right consultant before you get started will help you in getting the right license seamlessly. We at Flyingcolour have experienced and qualified professionals assisting our clients with right solutions and guiding them to the right decision.
Fyingcolour Business Setup, Accounting & VAT Services has helped several clients to setup business in Dubai and UAE in mainland, Free Zone & offshore with detailing all the steps, costs, regulations and legalities. This blog post is written by Mr. Sajeev. Feel free to call today for a more detail on your business setup inquiry. Please send inquiry to info[at]flyingcolour[dot]com or call +971 4 4542366.