Cost of Opening a Small Cafe in Dubai: A Comprehensive Guide

The cost of opening a cafe in Dubai can range from AED 100,000 to AED 150,000. This article provides a detailed guide to the factors influencing the cost and the necessary steps to establish a successful small cafe in Dubai.

Estimated Investment for a Small Cafe

For a small-sized cafe with a kitchen, the investment can range from AED 500,000 to AED 750,000. It is crucial to note that the exact cost can vary depending on several factors such as the size of the cafe, the quality of equipment, the availability of space, and regulatory requirements.

Regulatory Requirements and Certifications

Opening a cafe in Dubai comes with significant regulatory hurdles. The food industry is highly regulated, and you will need to obtain various clearances from the authorities. This section discusses the necessary steps and certifications to ensure your cafe meets international food safety standards.

Ensure Food Safety and Get Required Certifications

In Dubai, food safety standards are of international standards. The authorities require detailed reports on food safety implementation and food safety management certifications to approve the business license. Obtaining certifications such as ISO 22000:2018 and HALAL certifications can enhance credibility and expedite the licensing process.

Food Safety Requirements for Cafeterias in Dubai

Food Consignment Release License from the authorities Permit for Vehicles for transporting food products Special Permit for handling and serving meat or any by-products

The cafeteria space must comply with certain requirements to receive approval from the Department of Economic Development (DED). These include:

Enough space for required equipment Proper waste disposal system and timely disposals Smoke detector placements and fitting of the smoke management system with adequate fire extinguishers and fire alarm systems Separate washroom and restroom facilities Amp storage areas with fire-proof insulation in walls, floor, and roof Conducting pest control on all equipment and space Separate dishwashing area and kitchen facility with distinct areas for utensils, vegetable cleaning, and meat section

Documents Required for Cafeteria License Approval

Cafeteria Plan Details, including: Storage space and food processing area Windows and ventilation system Entry, exit, and emergency exit ways Washroom and restroom space Placement of equipment used to prepare food Initial Approval Letter by the DED Layout and plan of the premises Approval from the Planning Department if the cafeteria is located outside of a shopping center

Procedure to Obtain a Cafeteria License in Dubai

Choose the trade name for the establishment and get it approved by the DED. Prepare the local sponsor/local service agent agreement for the cafeteria according to the chosen license category. Meet the guidelines from the Food Safety Department while choosing the space and setting up the cafeteria. Obtain the tenancy contract and Ejari for the space. Submit all the documents to the DED for the initial approval. Apply for the No Objection Certificate (NOC) from the Food Safety Department and approval from the Dubai Municipality. Submit all the approvals and supporting documents to the DED to get the business license.

Cost of Opening a Cafe in Dubai

Opening and operating a cafe in Dubai involves significant planning and financial arrangements. This section breaks down the estimated costs and provides a detailed breakdown of expenses.

Company Incorporation Costs

Set aside a budget for the incorporation process, which includes:

License fees and approvals Certifications and office rent Initial investments

Additional costs may include:

Market fees Labour file charges P.O. Box rental License amendment fees if any

As a new entrepreneur in Dubai, it is advisable to consult with an experienced business consultant to navigate the complex regulatory environment and ensure a smooth business setup.

Key Takeaways:

The cost of opening a cafe in Dubai can range from AED 100,000 to AED 150,000. Food safety certifications and compliance are essential. The process involves multiple steps and a range of documents to be submitted to regulatory bodies. Consulting with a business consultant can help streamline the process.