How Much Does The Catering Service Cost?

If you have an idea for a new business setup in Sharjah, you might consider establishing a catering service in the third most populous city in UAE. Whether you are a newbie or an advanced business person looking to expand your business footprint, a company registered for catering services would be an ideal look for you.

Interested in learning more? Well, read on. In this blog, we will explore the following;

• What are the potential business costs?
• Business requirements
• Steps to setting up the business
• How can SPC Free Zone help?

How much does the catering service cost?

There are several potential business costs that a catering service in the United Arab Emirates (UAE) may incur during setup. You may also wish to register a free zone company in Sharjah. I shared more details on this at the end of this article.

First and foremost, the costs are associated with obtaining the necessary licenses and permits from the local government. This may include fees for obtaining a food handling and preparation permit from the municipality and a trade license from the Department of Economic Development (DED).

Another high cost is the cost of renting or leasing a commercial kitchen. This may include the costs of renting a space, as well as any necessary renovations or upgrades to the kitchen to meet local health department standards.

The cost of purchasing equipment, such as ovens, stoves, and other kitchen appliances, can also be high. Additionally, there is the cost of purchasing food and other supplies, such as ingredients, utensils, and tableware.

Another potential cost is the cost of hiring staff, such as chefs, servers, and other support staff. This may include the cost of recruiting, hiring, and training staff and ongoing salaries and benefits.

Marketing and advertising costs can also be significant, especially in the early stages of the business. This may include the costs of creating a website, printing flyers and brochures, and advertising in local media.

Finally, liability insurance is necessary to protect the business in case of accidents or mishaps.

In summary, potential business costs for a catering service in the UAE include

• the cost of obtaining licenses and permits,
• the cost of renting or leasing a commercial kitchen,
• the cost of purchasing equipment and supplies,
• the cost of hiring staff,
• the cost of marketing and advertising, and
• the cost of liability insurance.

Business requirements

In order to operate a catering service in the United Arab Emirates (UAE), several business requirements must be met.

Obtaining the necessary licenses and permits from the local government is important. This may include obtaining a food handling and preparation permit from the municipality and a trade license from the Department of Economic Development (DED) as stated above.

Additionally, it is important to have a commercial kitchen that meets the standards set by the local health department. This may include having a designated area for food storage, preparation, and cooking and proper sanitation and hygiene practices.

It is also important to have a strong understanding of the local market and customer base and a well-developed business plan. This may include researching the competition, identifying target customers, and developing a menu that appeals to the local palate.

Another important aspect is to have a professional team, including chefs, servers, and other staff members with the necessary experience and skills to provide excellent customer service and produce high-quality food.

Finally, it is essential to have liability insurance to protect your business in case of any accidents or mishaps.

In summary, to operate a catering service in the UAE, you need to obtain the necessary licenses and permits, have a commercial kitchen that meets health department standards, have a well-developed business plan, have a professional team, and have liability insurance.

Steps to setting up the business

Setting up a catering business in the United Arab Emirates (UAE) involves several steps, including:

1. Research the market: Research the local market and customer base to understand the demand for catering services in the area and identify the competition.
2. Develop a business plan: Develop a comprehensive business plan that includes information about the target market, services offered, pricing strategy, and projected financials.
3. Obtain licenses and permits: Obtain the necessary licenses and permits from the local government, including a food handling and preparation permit from the municipality and a trade license from the Department of Economic Development (DED).
4. Secure a commercial kitchen: Rent or lease a commercial kitchen that meets local health department standards and is suitable for the scale of your business.
5. Purchase equipment and supplies: Purchase necessary equipment, such as ovens, stoves, and other kitchen appliances, and ingredients and supplies, such as utensils and tableware.
6. Hire staff: Hire experienced and skilled staff, such as chefs, servers, and other support staff.
7. Marketing and Advertising: Create a website, print flyers and brochures, and advertise in local media to inform people about your services.
8. Obtain liability insurance: Obtain liability insurance to protect the business in case of accidents or mishaps.
9. Launch and operate the business: Once all the steps are done, launch and operate the business according to your business plan, providing high-quality food and excellent customer service.

In summary, setting up a catering business in the UAE involves researching the market, developing a business plan, obtaining licenses and permits, securing a commercial kitchen, purchasing equipment and supplies, hiring staff, marketing and advertising, obtaining liability insurance, and launching and operating the business.

Licensing and documentation required

​​To set up a catering business in the United Arab Emirates (UAE), several licenses and documents are required. These include:

1. Trade License: Obtain a trade license from the Department of Economic Development (DED) in the emirate where the business will be located. This license is necessary to legally operate a business in the UAE.
2. Food Handling and Preparation Permit: Obtain a local municipality’s food handling and preparation permit. This permit is required to ensure that the business meets the necessary health and safety standards.
3. Commercial Kitchen Approval: Obtain approval for the commercial kitchen from the local health department. This includes ensuring that the kitchen meets the necessary sanitation and hygiene standards.
4. Insurance: Obtain liability insurance to protect the business in case of any accidents or mishaps.
5. Emirates ID and passport: The catering business’s owner should have a valid ID.
6. Health certificate: A health certificate will be required to confirm that the catering business’s owner and staff members are healthy and do not have any contagious disease.
7. Business Plan: A business plan will be required as part of the trade license and other permit application process.

In summary, the licensing and documentation required to set up a catering business in the UAE include a trade license, a food handling and preparation permit, commercial kitchen approval, insurance, Emirates ID and passport, a health certificate, and a business plan. It is important to note that requirements may vary depending on the specific emirate and municipality where the business is located.

How can SPC Free Zone help?

Setting up a catering business in the United Arab Emirates (UAE) can be simplified with the help of a Special Purpose Company (SPC) Free Zone. These free zones provide a range of benefits for businesses, including:

1. 100% foreign ownership: In an SPC Free Zone, the business can be 100% foreign-owned, eliminating the need for a local sponsor.
2. Easy and fast setup process: SPC Free Zones typically have a streamlined business setup process with minimal bureaucracy and paperwork.
3. Access to a wide range of services: SPC Free Zones often provide a range of services, including business centers, meeting rooms, and virtual office services, which can help to support the business.
4. Access to a large customer base: SPC Free Zones are often located in areas with many businesses and individuals, providing easy access to a wide customer base.

In summary, SPC Free Zones can help to simplify the process of setting up a catering business in the UAE by offering 100% foreign ownership, an easy and fast setup process, access to a wide range of services, and a large customer base.