Cafeteria Business in Dubai: Profitable & Easy Setup

Looking for a low-maintenance, profitable business in Dubai? Then, small cafeteria might be the ideal choice. Small cafeterias have their charm unlike large-scale restaurants. Cafeterias are simple, cozy, and highly popular, catering to a large expat customers. From busy professionals, to residents who love quick bites, great coffee, and an inviting ambiance.

The great news is starting a cafeteria in Dubai is relatively easy. It can be a highly profitable business with the right setup. This blog share everything needs to start your cafeteria business in Dubai.

Why a Cafeteria Business in Dubai is a Good Idea

Dubai is a bustling city with life. Small cafeterias are at the heart of its food scene. There are cafeterias on every block from street corners to business districts. This popularity is driven by the city’s expat population. It makes up around 90% of its residents. The demand for tasty, and affordable food is high. Specifically in fast-paced urban environments like Dubai.

A cafeteria in Dubai doesn’t just provide food. But it offers a comfortable and quick stop for people to recharge. Cafeterias offer affordable prices and prompt service whether its a fresh cup of coffee, a sandwich, or a quick meal. This makes them a favorite among the working crowd. Cafeterias are often full thanks to the hustle culture in Dubai. People coming in for a quick bite during work breaks or to meet friends. The best part? No need to worry about competition. Because food lovers are always on the lookout for new spots to try.

The process is simple if you’re starting a cafeteria in Dubai. The potential for successful business is high. We penned down a guide to help you understand the:

• Steps
• Costs, and
• Requirements in opening a cafeteria in this vibrant city.

Steps to Open a Cafeteria in Dubai

Opening a cafeteria in Dubai requires a few essential steps. These are crucial to get the necessary licenses. Here’s a breakdown:

1. Obtain the Necessary Licenses

To legally run a cafeteria, you’ll need to secure two main licenses:

Cafeteria License:

Cafeteria license is issued by the DED or the free zone authority. It depends on whether you choose to operate in the mainland or a free zone.

Food License:

Food license is issued by the Dubai Municipality Food Safety Department. Get approval for your cafeteria’s layout before applying for the food license. It must include all key elements such as: 

• Food preparation areas
• Storage, ventilation, and
• Exits.

2. Choose Your Jurisdiction

You need to decide whether you want your cafeteria to be based in the mainland or a free zone. The mainland offers more flexibility for operating throughout Dubai, but a free zone can provide tax advantages and simplified setup processes.

3. Lease a Suitable Location

For successful business, finding the right location is crucial. The cafeteria area should be accessible to your target audience. The space is large enough to accommodate your:

• Kitchen
• Storage, and
• Dining areas.

The location should also meet specific requirements. These are:

—> Having proper waste disposal

—> Ventilation systems, and

—> Sufficient space for equipment.

4. Submit Documents for Approval

You will need to submit various documents, including:

• Proposed names for the cafeteria (three names for approval)
• Passport copies of shareholders
• Trade license application
• Floor plan of the cafeteria (detailing all food-related areas and facilities)

5. Finalize Your Business Structure

Select your business structure and legal form. Then, draft the Memorandum of Association (MoA). Lastly, sign the commercial lease agreement. After all this, officially register your cafeteria with the DED or the relevant free zone authority.

6. Obtain the Food License

Apply for a food license from the Dubai Municipality once your cafeteria layout is approved, and your trade license is issued. Submit your:

• Business license
• Floor plan, and
• Approval certificates from various authorities.

Key Considerations for Cafeteria Location

Selecting the right location for your cafeteria business plan in dubai is crucial. Some of the key location requirements include:

Adequate Space:

Your cafeteria should have enough room for:

• Kitchen equipment
• Storage, and
• Customer seating.

Separate Washrooms:

Washrooms should be located away from the kitchen area for hygiene purposes.

Ventilation:

It is essential for a proper ventilation for a comfortable dining environment.

Waste Disposal:

There should be dedicated areas for waste disposal and food preparation.

Fire Safety:

The entire space must meet fire safety standards. Along with appropriate exits and fire safety equipment.

Cost of Opening a Cafeteria in Dubai

A cafeteria set up is affordable as compared to a full-fledged restaurant. It requires a reasonable investment. Opening a small cafeteria in Dubai cost can range from AED 120,000 to AED 170,000. It depends on the:

• Location
• Decor, and
• Size of the establishment

The major expenses include:

Trade License Fee:

The trade license fee is anywhere from AED 10,000 to AED 28,000.

Rent:

In Dubai, the rental cost of a commercial space can vary. It depends on the area and property size.

Interior Design:

Allocate a budget for interior design and decoration. It can cost from 30,000 to AED 50,000.

Staff and Visas:

Don’t forget to factor in the cost of hiring staff and processing employee visas.

Although the setup costs can be high. However, the good news is that cafeterias tend to break even relatively quickly. This is due to the steady demand for affordable, quick food.

Promote Your Cafeteria

Business promotion is essential to ensure success once your cafeteria is up and running. Consider offering:

Home Delivery:

To reach more customers, start a home delivery service 

Loyalty Programs:

Reward permanent customers with loyalty programs/discounts.

Social Media Marketing:

Utilize platforms like Instagram and Facebook. This helps to showcase your offerings and reach a wider audience.

Is Cafeteria Business Profitable in Dubai

Dubai is a fast-growing city with a massive expat population. Undoubtedly, a perfect market for cafeterias. These spaces offer quick, affordable meals in comfortable settings. A cafeteria business in Dubai can be highly profitable. Because of its low competition in the small café sector and high demand for quick bites.

Get Expert Help with Your Cafeteria Setup

The legal requirements of setting up a business in Dubai can be overwhelming. Business consultants can simplify the process. Their support ensures that you meet all legal requirements quickly and efficiently.

Get in touch with our expert team if you’re ready to take the plunge. With us, start your cafeteria business in Dubai stress-free. We can guide you through every step of the process. This entails obtaining licenses to set up your cafeteria. Want to start today? Reach out to us and begin your journey toward owning a successful cafeteria in Dubai! Let’s go! For such insightful blogs stay connected with us.