All over the world, Dubai is gaining recognition for its food experience. UAE is not just limited to luxury restaurants but also offers a wide range of gastronomic experiences in the form of food trucks in Dubai. There is an increased demand for food truck licences in Dubai because food trucks have gained immense popularity over the last few years. So how to get a food truck licence in Dubai?
The advantage of mobility in the food truck format has given operators access to multiple locations and they are gaining worldwide popularity in the evolving restaurant space. Instead of going to a traditional restaurant, entrepreneurs are looking for ways to invest in a food truck. With decorated exteriors and serving niche food items, colourful trucks have a lot of potential in terms of generating advertising revenue and tapping new markets.
For people looking to make good profits in Dubai, launching a food truck business is an attractive proposition. The food truck industry has become a diverse entrepreneurial dream as it is more flexible and less risky. The business entrepreneur is also not tied to leases or other long-term contracts while setting up a food truck business.
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Getting a Food Truck Licence in Dubai
Over the past few decades, food trucks have become a part of Dubai’s landscape. This new phenomenon brought high-quality cuisine to the street while the emirate had traditionally been known for high-concept fine dining. The growing demand within the Emirates for great food at affordable prices is the reason behind the rise in the popularity of food trucks.
Running a good truck is not an easy job because it requires a lot of hard work, potentially long hours, and a flair for creating cuisine that stands out from the rest. Getting a food truck licence in Dubai can be a complex process as the country sets high standards when it comes to who can run a food truck in the city.
Obtaining a food truck licence in Dubai is the first major step in starting a food truck business in Dubai. To get a food truck licence and permit, the entrepreneur needs approvals from the Department of Economic Development (DED), Dubai Municipality, Hazard Analysis Critical Control Point (HACCP), and Roads and Transport Authority.
Obtaining the Approval from Department of Economic Development (DED)
To understand the business plan and regulate the economic performance of businesses in Dubai, the Dubai Economic Department has the overarching responsibility. Licensing, inspection, and issuing legal contracts for businesses are the responsibility of this department.
For starting a food truck in Dubai, the first step is to obtain approvals from the Department of Economic Development and the Dubai Municipality. The entrepreneur has to submit a detailed business plan for getting approval.
The business plan must explain the “business idea” such as explaining the thought behind starting such a business venture. They must also state the mission and their vision. The concept of the food truck must also be explained. This includes the look, feel, and theme of the food truck. The concept must also talk about the consumer experience.
The “financial plan” is another major aspect of the business plan. The entrepreneur must explain the idea behind raising funds for the business from investors, expenses, capital required, forecasting sales, break-even, etc. The financial plan must include the funding strategy; whether the funds are raised from investors or self-investment. They should also comprise the risks associated with the business, plans to mitigate the risks, and ideas for scaling the business.
Finally, the business plan must include the business model that explains the way of doing the business and the principles on which the business will run. The framework of the business plan is the business model. The government officials must be convinced with the business plan and that the idea of the food truck is a well-thought-out idea. In this way, it can be a profitable and sustainable business.
Compared to foreign requirements, business plans must be comprehensively researched in the UAE. If an entrepreneur wants to be set up for success, it is wise to ensure that their submission is thorough enough. When providing financial data, it is essential to be as detailed and realistic.
Obtaining the Approval from Hazard Analysis Critical Control Point (HACCP)
The approval of the truck and the kitchen in it is very important by the relevant authorities for safety and hygiene. From Hazard Analysis Critical Control Point (HACCP), the entrepreneur is required to obtain two certificates. The first one is the layout for the food truck which includes the overall layout of the kitchen. The other things to be approved by the authorities are the kitchen setup, the waste management system, the serving counter, the cooking system, etc.
The second one is the blueprint of the design of the food truck. Not only the blueprint of the kitchen but also the provision for electricity, specifications of the truck, safety measures, etc should be included.
HACCP certification is important as it ensures the entrepreneur’s commitment to safe food. It helps to build brand credibility and is effective for food safety and hygiene. The entrepreneur’s seriousness towards various hazards such as biological or physical food hazards is demonstrated through it.
The entrepreneur can find the location and start trading only with approval from the relevant authorities. Licensing laws are not unnecessarily cumbersome by any means although they are very strict. The business owner can receive all the relevant approvals and the licence in as little as 30 days. There is no reason why the licensing process shouldn’t run smoothly as the business owners adhere to the requirements and guidelines set out by the Dubai authorities.
It is a good idea to work with a company formation expert in UAE to ensure that the licensing process is smooth and who can ensure that the application is complete and accurate. Business Setup Consultants in Dubai make it easy for new businesses to obtain the licence and they offer customised plans according to the client’s requirement.
Setting up Food Truck Business in Dubai
An ever-increasing number of entrepreneurs are looking to get into the food truck business as it is a worthwhile venture. With low barriers to entry, it is a new and exciting aspect of the food industry. After getting approval from the respective authorities, there are some other factors to look into before establishing the food truck business.
The following are some of the strategies that the business owner needs to follow to set up a food truck business after getting the licence from the authorities:
Search for Best Locations
An entrepreneur must do their research and plan diligently as this is the element where the business strategies of the food truck owner are tested. They have the complete liberty to take it to wherever they want as their restaurant is on wheels. The city has to be scanned to identify the most popular and profitable location while selecting the best locations. A must-have skill for the food truck owner is finding the appropriate spot and grabbing it before other food vendors.
The location must be decided by the entrepreneur based on various parameters. Where the cuisine the entrepreneur offers is unique and where there are not many small vendors already doing the business that they are about to start is an ideal location to set up a food truck business in the UAE. The location should not obstruct traffic or violate zoning laws and it should attract massive footfall.
Look for the Right Commercial Vehicle
Choosing the right truck or commercial vehicle is one of the major things to do while starting a food truck business. The entrepreneur needs a commercial vehicle that is at least 18 feet long based on their selected menu as the truck should be big enough to accommodate the kitchen and the delivery set up efficiently. In a food truck, both the front-of-the-house and back-of-the-house operations are carried out in the same place.
As per the requirements and budget, the truck can be self-bought or rented. The entrepreneurs can opt for a used truck that would be much cheaper than a brand new one to save costs initially. The vehicle can be modified and designed based on their requirement if they choose an old commercial truck. In making the vehicle more attractive, the truck’s creative add-ons and exterior paint play an essential role. It can also be used as a prop to advertise the business.
Buy Kitchen Apparatus and Raw Materials
After the entrepreneur finds the right commercial vehicle and the location to set up their business, the next step is to stock up the kitchen with the essentials. This includes the apparatus and raw materials required to cook the food. A microwave, freezer, refrigerator, juicer mixer, griller, steamer, working tables, utensils, exhaust facilities, burner, etc are some of the kitchen equipment needed for a food truck. They will be available at cheap rates and are recommended to purchase a new one as they come with a warranty. This helps the entrepreneur to get relieved of the daily maintenance cost of the equipment.
To notice the sales pattern, raw materials should be purchased for shorter time intervals. The raw materials can be bought in bulk later on when the menu is stabilised and also based on the success rate of the food truck.
Hire Staff
Hiring the staff is the next step for the food truck business. A food truck should have two chefs. It shouldn’t be more than that as it would overcrowd the food truck and less than two chefs might not be enough to cater to a large number of orders.
An appropriate number of delivery boys is also important for the food truck to deliver food to the customers at their doorsteps. Apart from that, they can also assist in procuring the raw materials. Rather than depending upon third-party logistics, it is advisable to employ at least one delivery boy.
Marketing the Food Truck
Food trucks require fewer menu pamphlets distribution unlike traditional restaurant formats as the primary business is based on footfall. The entrepreneur can go for a mix of outdoor advertising and social media to create an initial buzz. Customers and followers are informed about the food truck’s location in real-time, attract referrals and build brand connections through social media marketing.
Another efficient way to market the business is by rolling out merchandise like t-shirts or mugs with the brand logo on them to the customers.
Setting up a food truck is not an easy job. The experts can help the entrepreneur with all the licence approval formalities, permissions, visa applications, and other necessary things for the Business Setup in Dubai. Their team of experts is passionate about bringing the dream of the aspiring entrepreneur into reality.
