Comprehensive Guide to Obtaining a Cafeteria License in Dubai 2025

Dubai’s rapidly growing food and beverage industry presents a golden opportunity for aspiring entrepreneurs to establish a cafeteria in the city. With its dynamic economy, diverse population, and bustling tourism sector, Dubai offers an ideal environment for launching a food business. However, navigating the licensing process, understanding the costs, and meeting regulatory requirements is essential to successfully opening a cafeteria. In this guide, we’ll take you through the crucial steps and considerations for obtaining a cafeteria license in Dubai.

What is a Cafeteria License in Dubai?

A cafeteria license in Dubai is a legal authorization granted by the Department of Economic Development (DED) to operate a food establishment focused on serving light meals, snacks, and beverages in a casual setting. Unlike a restaurant license, which covers full-service dining with a diverse menu, a cafeteria license is designed for establishments that provide quick, self-service meals and snacks in a more relaxed atmosphere.

This distinction is important as it determines the types of permits required, the scope of operations, and the overall business model. For entrepreneurs considering a cafeteria, understanding these differences will ensure you choose the correct license for your needs.

Why Start a Cafeteria in Dubai?

Dubai’s culinary landscape is thriving due to the influx of tourists, residents, and expatriates with varied tastes. The city’s appeal as a global business and leisure hub continues to create high demand for casual dining options, making cafeterias an attractive business model.

The benefits of owning a cafeteria in Dubai are numerous, including a favourable business environment, tax-free incentives, and streamlined company setup processes. Additionally, Dubai’s rapid urban development and increasing disposable income provide a solid foundation for a steady stream of customers, ensuring profitability for well-managed cafeterias.

Cost of a Cafeteria License in Dubai, Sharjah, and Abu Dhabi

The cost of obtaining a cafeteria license varies across different emirates and depends on factors like location, size, and business scope.

• Dubai: The initial cost for a cafeteria license in Dubai typically ranges from AED 10,000 to AED 30,000. This fee includes trade name reservation, initial approval, and administrative costs. Additional expenses such as leasing, interior design, and equipment will be additional.
• Sharjah: Licensing fees in Sharjah tend to be more affordable, making it a popular choice for budget-conscious entrepreneurs. The base cost is usually lower than in Dubai, and renewal fees are economical.
• Abu Dhabi: Cafeteria license costs in Abu Dhabi range from AED 10,000 to AED 40,000, with fees varying based on the scale and location of the business.
• Fujairah: Fujairah offers competitive licensing fees, with costs starting around AED 14,999 and annual renewal fees of approximately AED 5,000.

These figures are base costs and don’t include expenses like document attestation, notarization, or other setup-related charges.

How to Obtain a Cafeteria License in Dubai

Acquiring a cafeteria license in Dubai involves several well-defined steps:

1. Consult with a Business Setup Consultant: Collaborating with a professional can streamline the process, ensuring that you meet all regulatory requirements and complete necessary documentation.
2. Choose a Business Name: The name must adhere to UAE naming conventions, avoiding offensive or inappropriate language.
3. Determine the Legal Structure: For mainland setups, you’ll need a local sponsor who owns at least 51% of the business, unless you’re setting up in a free zone.
4. Obtain Initial Approvals: Apply for approvals from the DED and the Dubai Municipality’s Food Safety Department, which will verify your compliance with food safety and hygiene regulations.
5. Select a Location: Choose a location that meets both regulatory requirements and market demand. A valid tenancy contract is necessary for your application.
6. Submit Documentation: Provide necessary documents, including a Memorandum of Association, passport copies of shareholders, and the tenancy contract.
7. Apply for the License: Once all documents are submitted, you’ll receive your cafeteria license, allowing you to legally operate your business.
8. Obtain Additional Permits: Depending on your cafeteria’s services (e.g., outdoor seating or live entertainment), you may need additional permits from local authorities.

Additional Permits and Trade License

In addition to the cafeteria license, you will need a trade license from the DED to operate. The Dubai Municipality’s Food Safety Department plays a crucial role in ensuring that your cafeteria meets stringent hygiene and food safety standards. You may also need further permits if your cafeteria includes food imports, food transportation, or outdoor seating.

Cafeteria vs. Restaurant License in Dubai

While both cafeterias and restaurants fall under the food and beverage sector, there are key differences between their licenses:

• Scope of Activities: A cafeteria license is limited to light meals, snacks, and beverages served in a casual self-service format. A restaurant license, on the other hand, covers full-service dining with an extensive menu.
• Seating and Operations: Cafeterias tend to have more flexible seating arrangements, whereas restaurants generally require a formal seating setup.

These distinctions influence the licenses, permits, and operational requirements needed for each type of business.

Steps to Start a Cafeteria in Dubai

Starting a cafeteria in Dubai involves:

1. Conducting Market Research: Create a solid business plan that outlines your menu offerings, target audience, and marketing strategy.
2. Selecting the Location: Choose a strategic location that will attract customers and ensure compliance with zoning laws.
3. Fit-Out and Design: Ensure your interior complies with health and safety guidelines, including proper kitchen facilities and ventilation.
4. Hiring and Training Staff: Recruit qualified staff and provide them with training to meet food safety and customer service standards.
5. Licensing and Permits: Follow the licensing process to obtain the cafeteria and food safety licenses, along with any additional permits required.
6. Marketing: Plan a marketing strategy to promote your cafeteria, targeting the right audience and building a strong brand identity.

Raes Associates for expert guidance on obtaining the necessary licenses and permits

Opening a cafeteria in Dubai can be a rewarding venture, but it’s important to navigate the licensing process and regulatory requirements carefully. Understanding the differences between cafeteria and restaurant licenses, obtaining the necessary approvals, and selecting a prime location are key steps to success. By following these guidelines, you can establish a thriving cafeteria that caters to the diverse population and booming tourism industry of Dubai.

Need help with the setup process? Contact Raes Associates for expert guidance on obtaining the necessary licenses and permits to launch your cafeteria business in Dubai.