How much cost for cafeteria license in Dubai – A complete guide to start business

Dubai is bustling with life. People travel, have fun, eat and enjoy life. So, having a cafeteria in Dubai is the door to winning your luck. But do you know how much cost for cafeteria license in Dubai?

Well. This is a burning question that everyone wants to know the answer to.

In fact, you have to comply with numerous rules and regulations of the country to launch a cafeteria. Certainly, you will earn money, but in order to start the operation, you have to face a number of challenges.

After qualifying all the challenges, you can open a cafeteria.

In this post, you will explore all the necessary costs and associated issues to open a cafeteria in Dubai.

Let’s start the exploration.

 

Benefits of opening a cafeteria in Dubai

Prior to knowing how much cost for cafeteria license in Dubai, you should get a clear idea about the benefits of a cafeteria in Dubai.

Please note that the food and beverage market in the UAE is rapidly increasing. This could be the next step for a business success in the UAE market. So, everyone is trying to get legal permission to open a cafeteria.

But what are the benefits? Did you ever notice them? Check them here. And of course, you will feel inspired to open your own outlet.

A growing market

First of all, the food and beverage market is expanding at a great pace. So, if you have a cafeteria, you could be a leader in the race of success. Expanding the business will help you grow in a short span of time.

Improved networking

As you are providing different types of foods and beverages to your clients, you will naturally grow a strong network. In your network, you will have a strong tie with people of varied professions. You can use the network to move further and expand the business. Ultimately, you will have the opportunity to enter into the large market of Dubai.

Knowing the culture

At the same time, you could be able to know the local culture of the UAE. As people of different strata visit the cafeteria, they will discuss, laugh, and practice their cultures. This is a great way to know about the country, history and cultural aspects.

Ownership

Moreover, you can have the sole ownership of your cafeteria. You do not need to get any local or native of the UAE to be a partner of your business. If your cafeteria is in the free zone, you are able to claim the sole proprietorship of your business.

Easy profit gain

In Dubai, you do not need to provide any personal income tax. As a direct outcome, you could save the amount which will be added to your profit.

Business flexibility

As you are opening a cafeteria, it is not necessary that you sell coffee alone. Instead, you can arrange the cafeteria with diversified products and services. You can specialize in other beverages, short meals or any other niches that suits you.

 

What are the challenges?

Yes, there are lots of benefits in having a cafeteria in Dubai. But nothing comes with ease. The establishment process of a cafeteria also undergoes some challenges.

You need to be patient, battle the challenges and finally you will enjoy the outcomes.

However, many of the people lack the idea about the challenges. So, they get demotivated in the middle and leave the track. This is truly disappointing. But knowing the challenges in prior could be the key to success.

So, let’s check some of the key challenges in establishing a cafeteria in Dubai.

Strict rules

The first and foremost factor is that Dubai has some strict rules and regulations. You need to comply with the rules and regulations. Otherwise, you may not open your outlet.

Please note that this is not applicable for the cafeterias alone. The rules are applicable for all types of business. And if you are an expatriate, you need to remain more cautious.

Know your costs

You are reading this post to know how much cost for cafeteria license in dubai. But this is not all about the license. There are many associated costs around, and you have to know them all.

You have to pay for the space rent, you need to pay for other clearance certificates, you have to pay your employees, you need to purchase raw materials for the cafeteria. And the list goes on.

Accordingly, you need to make a monetary plan and distribute the costs accordingly to each specific sector. It needs proper planning.

Approval delay

Also note that you will not get all the required permissions in a single day. It may take more time than you expect.

Besides, your documents and appeals may get rejected for different reasons. So, you need to apply repeatedly unless those are approved. And of course, the application process is not that simple. It takes time.

You have to be patient and keep applying with the right and proper documents until you get the approvals.

Regulatory updates

The laws and regulations in the UAE may change overnight. And the authorities may not show any exact cause of the changes.

So, if you face any such change, you have to wait for the right time. Or you have to comply with the newly formed regulations and submit documents accordingly and set your course of action.

Financial hardships

It is true that a successful business can go a long way. But the way is not always that smooth. The business may stumble for numerous reasons. It could be about financial loss, it is about low capital or even bankruptcy.

Moreover, you may witness low sales because sales are not always the same. So, it could be a challenge for you. You need to have some alternative plans to overcome such situations.

Staff recruitment

At the same time, you need to hire staff for your cafeteria. You may have to sponsor a staff visa. That is about another cost. But if you are unable to pick the right person, you may have to suffer a lot.

Safety compliance

Last but not least, you need to comply with the safety requirements. Be it is food safety, or it is about the overall safety of your cafeteria. You have to comply with all the directives from the government.

Remember that the UAE government does not compromise with the compliance issues. So, if there are any flaws found, your business may face legal actions or even a permanent closure.

How much cost for cafeteria license in Dubai?

Opening a cafeteria in Dubai is not a big deal if you can navigate through the right channels. The cost of having a cafeteria license varies based on different factors.

According to experts, a rough estimate is around 35,000 AED will be required to obtain the license.

If you want to open a large-scale cafeteria, you may have to spend the amount mentioned above. But if you want to open a mini cafeteria, the license fee and other costs will be proportionately reduced.

 

What is included in the license cost?

It may sound weird that the cost of obtaining a cafeteria license is a bit higher than usual in other countries. But this is true for the UAE.

Why? Because the higher license cost is connected with some other associated costs. The breakdown is below for a comprehensive understanding of the readers.

Name reservation

You want to run a cafeteria and thus you need a suitable and nice name. Effortlessly you can get the name, but you have to reserve it. Otherwise, someone else may pick that name.

This might be a coincidence, but your unique name could be the property of others unless you register that for your use.

And for the registration, you have to pay a government fee worth up to 1,000 AED.

DED approval fee

At the same time, you have to pay the approval fee from the Department of Economic Development (DED). This fee is for initial approval and also associated with your licensing cost.

Documentation fees

To operate a cafeteria, you need to have some documentation, as well. So, you have to pay the necessary drafting fee, and of course you have to hire a service agent to complete those formalities.

Food safety approval

Simultaneously, you need to pay a moderate fee for the approval from the food safety authority. They will visit your outlet, check the cafeteria layout, inspect the standards of the food quality and others.

Fire safety clearance

On the other part, you have to pay another small fee to get the approval from the civil defence authority. It is about fire safety that your cafeteria outlet is not having any risk for fire incidents.

Alongside the aforementioned costs, you may also have to spend for your business signboard, health clearance certificate, fee to your business consultant, among others.

 

Why does the license fee vary?

The higher license fee is a concern for many in Dubai, especially who want to open a cafeteria or similar type of business. This is not only about opening a cafeteria, it is also about complying with the country’s rules. It is also about the features and flexibility of the business.

Some of the key contributors in increased license fees are explained here in brief.

Location matters

First of all, location is a big factor that influences the license fee. The license fee for the mainland is expensive. It happens as there are more regulatory issues and approvals required.

Besides, it needs to employ local sponsors or service providing agents. So, when you are employing such a provider, you have to pay their designated fee to work for you.

However, the license fee for the free zone is relatively lower than the mainland. But there are certain issues that you may need to consider like you cannot sell everything you want.

Size and structure

Besides, the size and structure of the cafeteria also matter while applying for a license. If you have a large cafeteria with a spacious kitchen and a large number of staff, the license fee will be higher than usual. Besides, such cafeterias are also subject to some more checks by the authorities.

However, if the size and structure is smaller, with fewer staff, the license fee is lower.

Moreover, if you form a company or LLC with your cafeteria, the fee may fluctuate as well.

Complying with the local rules and regulations also requires some fees to obtain the license.

 

The other costs

You have got an estimate about how much cost for cafeteria license in dubai. But this is not the end. There are some other costs available which you need to count.

You are not the owner of the cafeteria space. You have to pay the rent on a regular basis. Also, you have to pay your staff working at the cafeteria. You need to decorate the interior of the cafeteria. Signage of the cafeteria is another source of expenditure.

Besides, you have to get equipment for your kitchen. And of course, the kitchen equipment should be of high standard, trendy and good-looking. The price of kitchen wares like cutlery, cookingware, glass, cup, plate, disposable items – all need to be included in the cost.

Do not forget the operational costs. You have to pay for the electricity, water and gas connections. If you do not have a strong and enriched inventory, you cannot serve your customers properly. So, you have to pay attention here, as well.

Business insurance is another aspect which is like an investment. You need to get a fire-safety insurance plan and pay the premium.

Last but not least, you have to renew the license annually. Note this down to your expenditure list, too.

 

What can we do for you?

Opening a cafeteria and operating it smoothly is a tough call in Dubai. You cannot manage all the documents alone. There are some legal issues that you need to avoid smartly.

This is not a solo trip. Once you stumble here, it will take a long time to stand up and start over again.

Considering this ground, we provide all support to our clients who want to have their cafeteria in Dubai. Not only provide an idea about how much cost for cafeteria license in dubai, but we also provide real-life guidelines to cross the hurdles efficiently.

If you want to cut your costs, comply with the rules and regulations, we are there. Our legal experts will look after each issue and render a premium service at an affordable charge.

We help to tailor your route to success. Try our service today.