Dubai is the central hub for setting up a business. It provides an excellent opportunity for fresher and experienced people to grow their new business. Despite being such a resourceful centre, there are some drawbacks concerning the growth in the food business setup in Dubai, UAE. Food business needs more than excellent quality food to grow and make money.
A business owner needs to have a strong network, operation manuals and systems, which in combination with the right location, great food and passion for your business, will lead you right towards success.
The most important thing to consider is generating your concept and implementing it strictly. To avoid paying your part of gain to any big company, you need to comprehend the objectives, do proper market research, and plan consequently.
Risk of setting up a Food Business in Dubai
Here are some factors that threaten the growth of a food business in Dubai:
- Inappropriate Location: Wrong location choice is a factor you must consider while setting up a food business in Dubai. Certain things such as parking spots, accessibility, commercial population, the residential area should be within a radius of approximately one kilometre. If you don’t follow these steps, the business’s great deal will end.
- Expensive Structure: Try to avoid paying high rent and unnecessary residential cost that lets you compromise on your profit. The rent paid should not exceed 10% of the predictable annual turnover. Considering the cost-effective strategy, you will have a scope to succeed in your business.
- Improper Agreement: Take the required time to thoroughly read the agreement with tenants that you need to sign. Before signing up, re-read the tenancy period’s terms, conditions, and policies. The tenants should provide the constant support you need throughout your project over the contract.
- Inconsistency: All you need for a company set up in Dubai is stability and efficiency. A proper management system and a disciplined way of working are mandatory. Rules and regulations are applicable for the staff, owner, and other members. Maintaining the structure and method of work offers reliability to the customers, who will continue visiting to have the same fries or burgers. Even if you take a day/week off, it will ensure that your business runs efficiently.
- Incorrect Choice of Menu: Any business aims to serve the customer’s needs, so is the food business. The foundation of a food business is always ‘Food’. Thus the selection of menu is very significant. The menu offered by the restaurant cannot be something based on the owner’s personal preferences. It should always focus on ordinary people’s likes/dislikes and eating habits and whatever is trending.
- Lack of Concept And Substandard Equipment: Conceptualising your restaurant’s theme is the USP (Unique Selling Point). Offer food that fits the idea of your business and serves the need of the consumers as well. Set up appropriate equipment for the restaurant menu being offered and present it with correct pricing, wrapping and size.
- Extreme Investment: The most welcoming thing for a consumer is the food quality and hospitality. Many business owners invest needlessly into the infrastructure that they hardly have much capital for investment in production areas such as food and service. You should keep your budget in mind and invest according to the necessity.
- Insufficient Fund: For a new business formation in Dubai, you must ensure the required fund and capital to avoid borrowing money. Otherwise, it becomes crucial as an initial stage of starting up a business.
- Impatience: Any newly established company/business needs time to grow. The first few months of any start-up might not provide you with profit, but the only way to hold on to such times is to be patient and keep serving the purpose of your business faultlessly.
- Accounting System: A new start-up needs a regulated accounting system that is functional to receiving methods, person-hours, production, prime, fixed and variable costs of food outlets.
- Training Deprived Staffs: You have to clarify that the management and staff represent your business. Thus, training and motivation are essential for the growth of both the staff and the company. You should provide training during the pre-opening stage and throughout the company’s running. It regulates the performances, lifts and motivates the mood of the staff. Regular exercise, follow-ups, and appreciation for good performance encourage them to work hard for their personal development and further development in the business.
- Unsatisfied Consumers: Consumers are the meaning to your business. Remember that consumers spend their hard-earned money on something that pleases them. Polite behaviour and proper management are the factors consumers are always inclined on. So being a restaurant owner, you need to focus on investment in staff training and constructing good management.
Setting up a business needs effort, but running it requires more strength and hard work. There are risks in every new beginning, but you can overcome those risks easily. Knowing the risks and working on them to avoid them in any future venture is the most important thing to become a successful owner of a company and run an effective business.
By now, you must be alert of the factors that prohibit the growth of a food business setup. So, you should have a better vision to research further and proper planning to accomplish your dream of owning a food business company in Dubai.
Dubai is the perfect place to start any business. Dubai Business Setup allows any businessman to understand their dream by helping entrepreneurs throughout the world create new companies. Our consultants and experts will assist you the finding out what is right for you to form a new company.