In 2020, with the dream of bringing authentic Turkish bakery products—such as baklava, simit, açma, and poğaça—to Dubai, we decided to open a bakery. As three partners, we set out with an initial investment plan of around 150,000 dirhams. However, the realities of the market brought unexpected challenges. and it ends over 800,000 dirhems....
One of our first hurdles was setting up our own kitchen and obtaining the necessary licenses. Managing this process in Dubai was much more complex than it would have been in Turkey or elsewhere, and we went through a serious learning curve. Another significant challenge was finding skilled staff. Producing high-quality baklava and simit requires expertise, and during the first four months, we spent around 40,000 dirhams solely on testing and perfecting our recipes.
Once we were ready to sell, we faced another surprise: it was common in the market to offer products on long payment terms. Hotels and restaurants wanted to pay 90 to 120 days later. This meant supplying goods for about four months without receiving any payment. For example, if a customer purchased 50,000 dirhams worth of products per month, we had 200,000 dirhams outstanding before any payment came in. This cash flow gap made it difficult to reinvest in operations, purchase ingredients, or expand production. On paper, our sales looked strong, but in reality, our working capital was under constant pressure.
We also underestimated the logistical challenges of delivering fresh products daily across Dubai. From managing early-morning deliveries to maintaining quality during transport, the operational workload was heavy. Every delay or temperature issue carried the risk of damaging our reputation.
By the end of the first year, we realized that while there was strong demand for authentic Turkish bakery goods, the business model we had chosen—high-volume sales with long payment terms—was unsustainable without significant capital reserves. This experience taught us that in Dubai’s F&B sector, success is not just about having a great product; it’s about understanding local business practices, securing favorable payment agreements, and building operational efficiency from day one.
The bakery eventually became a stepping stone for me, giving me valuable insights into the UAE’s unique F&B market. Today, I approach new ventures with a sharper focus on financial planning, customer agreements, and scalable systems—lessons hard-earned, but worth every dirham spent.