How to set up a cafeteria in Dubai?

Over the years, cafeteria business has emerged as one of the most dependable sectors in Dubai witnessing growth year on year, yielding good profits for the investors. The main reasons attributed to this are the high quality lifestyle, significant disposable income and good purchasing power of people over here coupled with the growing tourism.

So, if you are interested in opening a cafeteria in Dubai, now is a good time to invest in this huge and lucrative market. Here are the following steps that you should take a look at and will help you in setting up your cafeteria in Dubai.

Cafeteria licensing requirement

The most important step for opening a cafeteria is to obtain the cafeteria license in Dubai which will authorise you to set up and operate cafeteria here.

Trade license – All cafeterias in Dubai are required to have a valid trade license from the Dubai Economic Development (DED) and Department of Tourism and Commerce Marketing which will give you the authority for running cafeteria business in Dubai. This can be availed by paying affordable fees to the authorities concerned. However, this is only for cases when you are planning to have your cafeteria set up in Dubai Mainland.

Noteworthy, for running cafeteria business in Dubai Mainland then you need a local partner or sponsor acting as legal service agent to setup a Limited Liability Company (LLC Company), who will at least have 51% of the share in the company. On the other hand, for free zone set up, you can apply directly to the relevant managing authority and have 100 % ownership in company.

In both cases, you are required to have the following typical documentation when applying for licence:

• Application fess
• Completed application form
• Passport copy of the proposed restaurant owner or owners
• Two passport size photos

However, before submitting an application to DED, you need to ensure that you have undertaken the following steps:

• Select the nature of your business venture
• Identifying corporate activities that your business venture caters
• Getting a legal status for your business venture in Dubai
• Select a partner or local sponsor
• Sign agreements with your partner or local sponsor in Notary Public Court
• Deciding and registering a valid trade name
• Company name approval letter
• Submitting the application for preliminary approval
• Leasing and tenancy contract for your business

Following are the typical documentation required for the trade license approval from the Department of Tourism and Commerce Marketing:-

• Memorandum of Association (MoA)
• Passport copy of the partners
•  Approval letter from the DED to Attested company name

Food License – This licence can be obtained through the Food & Safety Department which guarantees that you handle food in a safe manner. Following documents are required to be submitted for issuance of this License.

• Copy of the trade license
• Premises layout details (if applicable) which should include:

• Entry and exit passages
• Space for food processing
• Food storage area
• Restrooms space
• Windows and ventilation system
• Location of food equipment
• Location of dishwashers and other supportive equipment

• Permission from the planning department, in case if you want to open restaurant inside a shopping mall
• You also would be required to seek NOC on foodstuff establishment trade license from the Food & Safety Department and also from the DM.

Once you have secured your license, you can register it with the Ministry of Labour and the Immigration Department so that you can apply for visas for workers required to run your cafeteria.

Special Requirements for Opening of a Cafeteria in Dubai

In addition to the above licences, you are also required to acquire special requirements and permits for your cafeteria to ensure food safety which includes of:

• Pork permit - It for handling & serving pork products
• Food delivery permit licence
• Vehicle permit for transporting food products

Location of the Cafeteria

Choose a good location for your cafeteria as it is vital for your success. However, there are certain set parameters that are compulsory on the location of the cafeteria which includes of:

• The cafeteria ought to be at a 50 meter distance from a waste dumping areas so that the food cooked here does not be contaminated
• Restaurant size to be minimum of 750 square feet
• The 10 meter nearby area of the cafeteria should be kept hygienically clean at all times.
• Location of the cafeteria must be suitable and easily accessible.
• Walls, floors, and roof of the cafeteria should have washable, non-absorbent and fireproof surface.
• Provision of three separate basins should be kept in the kitchen, one for washing utensils, and additional ones for cleaning vegetable and meat cleaning.

What is cost of cafeteria business in Dubai?

As seen setting up and eventually successfully running a cafeteria in Dubai involves a lot of planning, approvals and financial consideration. Hence, it is sensible enough to set funds aside that would be required for initial set up cost for a company which broadly takes into consideration:

• Preliminary approval cost
• Trade name reservation cost
• Office Rent
• MoA typing & translation cost
• MoA attestation cost
• Tenancy contract (Ejari) attestation cost
• Trade license cost
• Sponsorship cost
• PRO services cost
• Immigration card cost

• Market fees which is 2% or 5% of annual office rent
• P.O. Box rental

Get Started with your Cafeteria in Dubai

Dubai is a happening destination for starting a cafeteria business in Dubai. However, as a new entrepreneur in Dubai foraying into the cafeteria business, it is wiseable to consult with an experienced business consultant as there are numerous prerequisite for starting a cafeteria in Dubai. So, do not delay and reach out Shuraa today and experience a hassle free setup of your cafeteria at the quickest possible time.