What you should know before starting a food truck business in Dubai UAE?
Food trucks are a growing phenomenon throughout the world. Most often associated with fast street food. They provide affordable, filling food that is relatively simple to prepare.
Since 2010, food trucks have been among the hottest trends in the restaurant industry in the UAE. They may have started as a less expensive alternative to a brick-and-mortar restaurant. But now they have become one of the strongest business models in the food and beverage industry.
Understand the Basics of Food Truck Business
As with all businesses, you need to have a strong business plan. Consult with experts to help you with every aspect of the business before and after setting up including food vendors, kitchen contracts, kitchen fittings, financing, and locations to sell your product effectively.
The cost of setting up a standard size food truck in Dubai is around AED135,000 on average, according to Bespoke Trailers, a UAE-based mobile unit manufacturer and retailer. In an interview conducted by Arabian Business, the firm said setting up food trucks that are smaller in size costs between AED 35,000 to AED60,000. While renting space costs between AED15,000 to AED25,000 a month.
Unlike many other jurisdictions, you cannot cook food in the truck itself. The only cooking allowed is the kind that enables the heating and serving of the cooked food. Therefore, you will have to enter into a contract to rent space and time in an industrial kitchen to cook the food that you plan to sell.
If you are a business owner with a trade license that covers the operation of your prospective mobile business, you can use it but speak to a consultant if you need to make any amendments.
Before you proceed to get your food truck, make sure it will pass the licensing requirements of the DED (Dubai Department of Economic Department), Dubai Municipality and Roads and Transport Authority. Many vendors custom-make, lease and sell trucks in the UAE including Bespoke Trailers, Food Truck Kings, The Food Truck Co., and Truckalicious, according to specs set out by the regulatory agencies.
You will need to obtain HACCP (Hazard Analysis Critical Control Point) certification for the layout of your central kitchen. You will also need to get HACCP certification for the design and fit-out of your food truck.
Location for Food Trucks
It’s important to note that food trucks in Dubai are not allowed to move around as much as many business owners think. They need to have a site that is deemed to be their “official location”.
Don’t limit your search to the popular areas in Dubai such as the beach and key shopping areas. Last Exit, street food-themed truck parks, have sites at Jebel Ali South & North, Al Qudra, and Al Khawaneej.
You can sell in private areas with a rental contract, and in public areas with an RTA permit. You could spend as little as Dh500 for one month with an RTA permit, and up to Dh25,000 per month in private spaces like malls or retail developments depending on the contract.
Knowing the correct place for your food truck is detrimental to the success of your business. We see many entrepreneurs launch their business only to fail because they did not take into consideration the tastes and expectations of their clientele on a given location. You might have the most amazing gyros. But if the residents prefer shawarmas, then you might need to set your expectations accordingly.
Typical restaurant deals with ongoing maintenance for the facility and kitchen equipment. With a food truck, you have those same maintenance issues. But also, you have all the maintenance issues that come with owning a moving vehicle. Make sure you have the right contracts in place to cater for ongoing vehicle maintenance.
Speak to the Experts and Test the Market
The relatively low barriers to entry have caused a massive surge in food trucks. Some jurisdictions have reduced the number of permits to reduce the glut in the market. Conducting proper research and speaking to a seasoned consultant has become more important than ever.
The food truck business is not just about passion for food. It’s a combination of business acumen, time management, marketing and making people happy. Conduct thorough research in advance via customer panels to receive feedback on your food products. And don’t wait until you have launched your business.
Your experience in the food truck business could become the catalyst for a full-fledged restaurant. Equally, a successful business could yield into multiple food trucks across the UAE. The key element on your pathway to success is a proper start. A free consultation from the experts will help along the way.
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