Dubai, which is in the middle of the Middle East, has a sizable population of foreign residents and investors who can help the city’s economy grow for the Dubai business setup. Particularly following the pandemic and shutdown, the food and beverage business has experienced a tremendous spike. Every street corner now has a new café, and the variety available to customers doesn’t prevent them from succeeding.
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Starting a café as a Dubai business setup requires a thorough and lengthy process, but it is not insurmountably difficult to achieve. However, it is advisable to contact business setup specialists and organizations to guarantee you have the greatest chance possible. This way, you can avoid any mistakes that could result in you not acquiring a license that permits you to manage a café. In Dubai, there are two major licenses needed to operate a café.
First, you must have a license for a café or coffee shop. In Dubai, the Department of Economic Development (DED) is the organization in charge of granting licenses to all firms. After that, you must put together a thorough business strategy to present to Dubai’s food control authority. After your plan has been accepted, you can now submit an application for the food license, which is granted by the Food Safety Department (FSD) of the Dubai Municipality.
A copy of your trade license is required for this license, along with a blueprint of your cafeteria that shows the locations of the entrances, exits, rooms for cooking and processing food, storage spaces, ventilation units, windows, doors, and other fixtures. Maintaining standards is necessary for several cafeteria license requirements, especially when it comes to hygienic practices and food safety. The government-structured regulations governing food production, cleanliness, preparation, storage, ventilation, cleaning procedures, etc. must be followed by your café. Starting a café in Dubai involves several steps, including obtaining the necessary licenses, finding a suitable location, and fulfilling legal requirements.
Here’s an expanded explanation of the steps you mentioned:
Before you start the formal process, conduct thorough market research to understand your target audience, competition, and market trends. Create a comprehensive business plan outlining your cafe’s concept, menu, pricing, marketing strategies, and financial projections.
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Register your cafe with the Department of Economic Development in Dubai. This is a fundamental step that allows you to legally operate your business. The type of license you’ll need depends on your cafe’s activities (e.g., food and beverage service). This step involves submitting the required documents and paying the necessary fees.
Given the nature of your business, you need to obtain a food license from the Food Safety Department. This ensures that your cafe complies with hygiene and safety standards. You’ll need to meet specific requirements related to food storage, preparation, handling, and display.
Find a suitable location for your cafe. Consider factors like foot traffic, visibility, accessibility, and proximity to your target audience. Make sure the location aligns with your cafe’s concept and theme.
If you have partners in your cafe venture, draft a Memorandum of Association (MOA). This legal document outlines the roles, responsibilities, ownership percentages, and financial contributions of each partner.
If you’re renting a commercial space for your cafe, negotiate and sign a lease agreement with the property owner. Ensure the terms of the lease align with your business needs and legal requirements.
If your chosen location is within a commercial building or complex, you might need to obtain a No Objection Certificate (NOC) from the building management. This certificate confirms that they have no objections to your cafe operating on their premises.
Once you’ve completed the necessary paperwork, including obtaining the NOC, you’ll need to pay the required fees for your trade license, food license, and any other applicable permits. These fees vary based on factors like the size of your cafe and its activities.
Design the interior of your cafe according to your concept and theme. This includes furniture, decor, layout, and any necessary renovations. Ensuring that all fire and safety rules are followed.
Hire and train your cafe staff, including chefs, waitstaff, and managerial roles. Emphasize the importance of customer service and maintaining food safety standards.
Develop a menu that aligns with your cafe’s concept and target audience. Source ingredients from reliable suppliers and ensure the menu meets FSD’s requirements.
Create a marketing strategy to promote your cafe’s opening. Utilize social media, local advertising, and any other relevant channels to generate buzz and attract customers.
To acquire the licenses mentioned earlier, a set of obligatory documents is necessary. This includes the blueprint detailing the layout of the cafeteria, which should encompass the unique features of Dubai’s cafes.
For the blueprint, it is imperative to include plans that illustrate the following aspects:
Given that, a cafe encompasses both food and trade licenses, acquiring both is essential. For obtaining the food license, which can be procured from the Food and Safety Department, the following documents are requisite:
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The profitability of a cafe Dubai business setup, or any location for that matter, depends on a variety of factors:
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Opening a café Dubai business setup is comparatively more affordable than opening a full-fledged restaurant. The overall cost depends on several factors, including the property, the trade license, the visas, and the permissions. A café license typically costs about 30,000 AED. Additional expenses such as the rental agreement, which is based on the square footage of your café overall, and the location you’ve chosen, are added on top of this. When considering sites, keep in mind that downtown properties are substantially more expensive than those in residential neighborhoods.