Opening a cafeteria in Dubai can be a great business opportunity considering the unprecedented expansion the Food & Beverage industry has witnessed in recent years. Both residents and tourists seek out unique and flavourful dining experiences, eager to try new cuisines, and cafeterias turn out to be a casual and affordable option to enjoy a leisurely meal or a quick bite. However, to plan a business in this sector, you need to be well informed of the legal requirements, operation guidelines as well as the cost of opening a cafeteria in Dubai.
So, this blog will explain everything you need to know about how to open a cafeteria in Dubai, the formation process, the key benefits, the major costs involved, and more.
Reasons to start a cafeteria in Dubai
Dubai has a booming economy and diverse population that makes it a prime location to launch a business in the F&B sector. Find out why –
- Thriving industry – The Food & beverage industry is a major contributor to Dubai’s economy. With the city being a global destination for tourists and an abode for residents with high disposable income, it would be quite feasible to create a strong customer base for food establishments.
- Business-friendly atmosphere – The Dubai government actively encourages foreign investment which is why it has streamlined the process of setting up a business. This makes it easier for entrepreneurs to get started with their dream ventures.
- High-profit potential – The city has a large pool of potential customers and a growing economy. This simply means there is potential for high profits in the F&B industry. Since cafeterias have lower operational costs compared to traditional dine-in restaurants, it would be possible to improve the profit margins.
- Diverse clientele – From local Emirati fare and international comfort food to healthy diet options, Dubai has a market for all of it. Besides, it accommodates a multicultural population that welcomes a variety of cuisines.
- High demand – With the fast-paced lifestyle, many residents rely on eating out. This creates a perpetual demand for cafeterias that can offer convenient and affordable meals to customers.
Process of opening a cafeteria in Dubai
To ensure compliance with local regulations and establish a successful operation, you need to follow the following steps –
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Pick a suitable name
To open a cafeteria in Dubai, you should have a clear description of the activity you are going to perform. Next, you need to establish a brand name that aligns with your chosen activity. Just like most countries, the UAE also has certain rules when it comes to choosing a name for a business.
Hence, to avoid any errors or misinterpretations, it is recommended to seek the help of experts to help you find an appropriate name for your brand and assist you with the necessary support to establish your business quickly and easily.
Acquire the required licenses
Once you have determined the base of your cafeteria business, it is time to obtain the required licenses that would authorize your business. All you need to do is fill out some forms and meet a series of requirements to get your licenses from the departments concerned.
Get approval for the business layout
To get the food license from the Food Safety Department, you need to present a construction plan for the cafeteria complying with the guidelines of the authority. The plan must include the storage areas, food processing areas, ventilation, and washing areas, as well as all windows, entrances, and exits of the establishment.
Choose a location
The location you decide to open your cafeteria could have a great impact on its success. Therefore, before making that decision, it is ideal to consider the concept of your business idea and the type of audience you want to attract.
Submit the documents
Finally, submit all the documents to the respective authorities to get approval for your business and licenses. Once issued, you can get started with your culinary activities in Dubai.
Documents required for food license: –
- Initial approval from the DED
- Layout of the premise
- Approval from the planning department (if it is located outside of a commercial center)
Documents required for trade license: –
- License application duly signed by the owner/partners
- Memorandum of Association (MOA)
- Trade name approval letter from the DED
- Passport copies of all the partners
Layout of the cafeteria: –
- Food processing and storage area
- Windows and ventilation system
- Entry and exit ways
- Sanitary spaces such as restrooms
- Washing areas
- Location of kitchen equipment used to prepare the food
Activities permitted in a cafeteria in Dubai
The DED license allows you to carry out the following activities in your cafeteria in Dubai: –
- Prepare and sell baked goods such as cookies, cakes, pastries, pasta, sandwiches, brownies, etc.
- Sell snacks, coffee, tea, or drinks of any kind.
- Sell ready-made and packaged products, such as chocolates, candies, snacks, and cookies.
The specialized advice from an expert at Shuraa can guide you and suggest the activities that fit perfectly with your cafeteria license in Dubai.
Requirements for opening a cafeteria in Dubai
Food safety requirements
- A license for food delivery
- A driving permit for the vehicles that will be used for transporting food products
- A license for serving pork or any of its by-products
Location requirements
The space or facility you choose for your café must meet the following conditions –
- Sufficient space to keep all the required kitchen equipment and tools
- Waste management system
- Proper installment of smoke management system
- Separate areas for storage
- Non-absorbent, washable, and fireproof walls, floors, and ceiling
- Pest-free
- Separate wash basins for washing utensils, vegetables, and meat
Cost of opening a cafeteria in Dubai
If you are planning a cafeteria business in Dubai, now is the time to do so. However, before getting into the business setup process, it is vital to estimate the overall cafeteria license cost in Dubai.
We have mentioned some of the major factors or components that can be included in the cost of opening a cafeteria in Dubai –
- Cafeteria license
The food license and the trade license are mandatory requisites for starting a cafeteria in Dubai. The Food license is issued by the Food and Safety Department, while the Department of Tourism and Commerce Marketing issues the trade license. Since a license is a legal requirement, any failure or negligence can result in legal action, fines, and even the shutdown of the cafe. Nevertheless, the cost of the cafeteria license may depend on various factors such as the location, the activities, the structure, and more.
- Government fees
Government fees include all charges imposed by the State authorities. For example, trademark registration, Initial approval fees, MOA drafting and notarization fees, Typing & Translation charges, Ejari fees, license fees, Sponsorship fees, and PRO Services, and Immigration Card fees.
- Other overheads
Additional overheads include everything that must be covered by the organization such as foreign trade name fees, expenses for Interior Design and Fit-out, Equipment and supplies costs, and staff remuneration.
The actual cost or the factors incurring the cost of your cafeteria may vary depending on your specific choices. To refine your budget, you can consult with the business setup specialists at Shuraa.
Partner with Shuraa
Shuraa Business Setup has designed special company formation packages that cover all major expenses and the cost of opening a cafeteria in Dubai. They also provide additional services such as corporate facilities, visa renewals, PRO services, and more.
For more information on exclusive packages offered by Shuraa Business Setup, speak with their experts today! Call +97144081900 or email info@shura.com to book your FREE consultation.
