Who doesn’t love the smell of sweets and pastries? Bakeries are heaven for the eyes of most of us. With a little hard work and passion, you can start a business that fills the heart and mouth of your customers. Nowadays, there is reportedly a growing demand for baked items in Dubai. This has led a lot of people to experiment with the bakery business. There is a high market for bakeries that make cupcakes, sweets, and event cakes in Dubai. That means this is indeed the best business to start in Dubai. This article will guide you on ‘How to start your bakery business in Dubai’. However, it’s important to evaluate all the factors before starting this business. You have to review your skills and budget while launching your bakery. If you’re able to make quality products, then you can make your brand popular.
Now, let’s go through the steps required to follow for starting a bakery business in Dubai.
How To Set Up A Bakery Business In Dubai?
The legal formalities and other procedures to begin a retail bakery business in Dubai are pretty easier than we imagine. Of course, for starting a bakery, just like any other business you should get a license and other permits. But, is that enough? In this blog, we will see both the legal requirements and other strategies to begin a bakery successfully in Dubai.
Following are the steps to be taken to start your bakery in Dubai:
1) Choose your location
Finding an adequate location is an important component of this whole procedure as the success of the Bakery relies upon the location. This can help in increasing the sale. Also, the Dubai Municipality only approves after reviewing the location.
With the significant growth in retail areas across Dubai, you have the choice to select among numerous facilities situated in different localities. For example, If you have decided to launch your business in a shopping mall, you can have a walk-in counter. Thus, you can do according to how effective and unique it seems and this may help you set yourself different and popular compared to others.
2) Get all the necessary licenses
First of all, you will need a local license to run a bakery business in Dubai. Next, you have to get a license based on what form of business you are starting. It can be a single enterprise, a public business, or even a limited liability business. So you need to decide which is suitable for your business.
Let’s look at this in more detail:
- This license of a bakery can be done as a single enterprise. Here you can possess 100% ownership of the company.
- The second option is to launch this as a public business. Here multiple people will acquire the ownership of the business as partners.
- The third option is to open it as a limited liability business. Here the government of Dubai will hold 51% of the share whereas you only possess 49% of the share of your business.
Another list of documents to be present before the Dubai Municipality for License:
- Interior design layout
- Show all access and exit points
- Area for processing food
- Area for stocking food
- Windows and ventilation
- Location of food equipment
- Dishwasher and other similar equipment
Following are the elements to highlight in these document:
Area of ‘Kitchen’ must be of Minimum 250sqft. Wall, Floor, and Ceiling should be washable and fireproof There should be enough light and must be colored with smooth nontoxic paints without any cracks. The floors must be properly sloped. Washing installations must contain double sinks with both hot and cold water. The dough mixer must be made up of stainless steel. An exhaust canopy should be place over the cooking area. The hand wash basin in the preparation area should be made of stainless steel. It should be capable of providing both hot and cold water.
The additional thing to keep in mind is the general trading license cost in Dubai. It may cost at least AED 10,000. Then, confirm the name and the activities to be included in the license before the submission of the application.
4) Prepare a Business plan
A business plan is require to start any business in Dubai. After going through all the above procedures, you should formulate a business plan to calculate your monthly expenses and income to gain profits from your business. You should have an idea about your likely customer to find the best strategies. So you can reach out to them for winning orders for your bakery. You also have to analyze different pricing strategies which will generously serve your business. This should include a summary of your bakery business plan, business overview, industry analysis, SWOT analysis, financial analysis, and finally a marketing plan for your bakery business. This has to be submitted to the authority along with the documents discussed above.
5) Get your kitchen ready
For a bakery to operate satisfactorily, decent equipment is mandatory as this has a crucial role in boosting the speed of the cooking. This also helps to serve your customers quickly enough. Every need requires different equipment. Therefore, you should keep hold of various baking tools and assisting devices. The other most important factor is that bakeries are liable to the additional requirement of enduring the local “Food Code”. This is an endeavor of the Food Control Department of the Dubai Municipality for ensuring food safety. It is for increasing safety standards. The municipal authorities will visit at times to inspect the bakery to inspect all these and ensure that one is following all the regulations.
6) Hire your squad
To run a bakery you will need assistance from skilled employees as this can’t be done as a single person. There is a need for support while preparing these items and for maintaining the Bakery. This will help you boost your productivity.
7) Price Tagging
If you are new to this business, then you obviously cannot charge your client a big amount. However, you should not flinch to charge them reasonably. In the beginning, you can compare the prices with the other bakeries nearby to get an idea and come up with a price tag. Later, when your business thrives your price will also rise.
With the above steps, you can start your business in Dubai with great success.
After following all these procedures given above, you would be qualified to start a bakery business and run it successfully. Also, you must compute your financial elements with vigilance. Such as investments, expenditures, and setting up practical revenue goals to accomplish in your business.