Dubai has a fast-growing food and beverage market. People from many cultures live and work here, which creates strong demand for affordable and quick meals. This is why cafeterias are a popular business choice. They are easier to start than full restaurants and usually need less space, fewer staff, and lower investment. For new entrepreneurs and small investors, cafeterias offer a practical entry into the food business in Dubai.
Many business owners only focus on the basic license price, but the total cafeteria license cost in Dubai is often higher. Extra expenses such as food safety approvals, inspections, location requirements, and other government fees are usually not included in the advertised cost. This guide explains the full cost, required approvals, timelines, and hidden fees. It helps you plan your budget properly and start your cafeteria business without unexpected surprises.
What Is a Cafeteria License in Dubai, UAE?
A cafeteria license in Dubai is a legal permit that allows a business to prepare and sell food and beverages to the public. It is issued under UAE business laws by the Dubai Department of Economy and Tourism (DET), also known as DED. This license is designed for food outlets that offer quick meals, snacks, and drinks, usually without full table service.
A cafeteria trade license has clear limits. It allows simple food preparation and fast service. It does not allow fine dining, alcohol service, or complex cooking activities unless special approvals are taken. This is why choosing the correct license type from the start is very important.
Difference Between Cafeteria, Restaurant, and Coffee Shop
Many people confuse these food business types, but Dubai authorities treat them differently.
- Cafeteria
A cafeteria focuses on quick-service food and beverages. It usually offers snacks, sandwiches, juices, and light meals. Seating is limited, and service is fast. The setup and licensing cost are lower compared to restaurants. - Restaurant
A restaurant license allows full meal preparation and table service. Restaurants need larger kitchens, more staff, and higher compliance with safety and fit-out rules. The license cost and approval process are also higher. - Coffee Shop / Café
A café mainly serves coffee, tea, and light food items such as pastries. Some cafés may allow limited food preparation, but their menu and equipment are usually restricted compared to restaurants.
Choosing the wrong category can lead to delays, fines, or rejection of approvals.
Permitted Activities Under a Cafeteria License
With a cafeteria trade license in Dubai, you are generally allowed to:
- Prepare and sell light food items
- Serve hot and cold beverages
- Offer takeaway and delivery services
- Operate a small seating area (subject to approval)
Important: Menu items and kitchen equipment must match what is approved by Dubai Municipality.
Key Authorities Involved in Issuing a Cafeteria License
Several government bodies are involved in approving and regulating a cafeteria business in Dubai:
- Dubai Department of Economy & Tourism (DET / DED)
Issues the trade license and approves the business activity. - Dubai Municipality
Reviews the shop layout, kitchen setup, and hygiene standards. - Food Safety Department
Ensures compliance with food management rules, staff training, and regular inspections.
Each authority plays a role in ensuring your cafeteria operates legally and safely.
Types of Cafeteria Licenses in Dubai
Dubai offers different types of license options based on your business plan to run your business. Each type comes with its own rules, costs, and customer access limits. Understanding these differences helps you choose the right setup from the beginning.
Mainland Cafeteria License
A mainland cafeteria or food license is issued by the Department of Economy and Tourism (DET), previously knowns as Department of Economic Development. This is the most flexible and widely used option. It allows you to open a cafeteria anywhere in Dubai, subject to location approvals. With this license, you can serve walk-in customers, offer takeaway, and partner with delivery platforms. It is the best choice for entrepreneurs who want a physical shop with direct customer access.
Free Zone Cafeteria License
A free zone cafeteria license is available only in specific free zones that permit food & beverage activities. These licenses usually come with operational restrictions. In most cases, free zone cafeterias are allowed to operate only within the free zone or provide delivery services. Walk-in customers from outside the free zone are generally not permitted unless special approvals are obtained. This option suits businesses that focus more on delivery than foot traffic.
Cafeteria License Costs in Dubai
The total cost of starting a cafeteria in Dubai includes several government, safety, and setup fees. These costs vary based on your business model, shop size, and location, but the breakdown below gives a realistic estimate for planning your budget.
Government Fees
These are the basic charges required to legally register and issue your business license.
- Trade Name Registration: AED 600 – 1,000
- Initial Approval: AED 100 – 300
- License Issuance: AED 8,000 – 12,000
- Market and Innovation Fees: AED 1,000 – 2,000
Estimated Total: AED 9,700 – 15,300
Food and Safety-Related Costs
Food businesses must comply with Dubai Municipality’s health and safety rules before opening.
- Food Safety Approval: AED 500 – 1,000
- Municipality Inspections: AED 500 – 1,500
- Food Handler Medical Tests (Per Person): AED 250 – 350
- Food Safety Training Certificates (Per person): AED 200 – 300
Estimated Total: AED 1,500 – 4,000 (Depends on Staff Count)
Location and Premises Costs
Your shop location and size directly affect approvals and expenses.
- Ejari Registration: AED 200 – 250
- Shop Size Compliance: Cost varies by location
- Location-Based Approvals: AED 1,000 – 3,000
- Layout and Fit-Out Approval: AED 2,000 – 5,000
Estimated Total: AED 3,200 – 8,000
Other Mandatory Costs
These costs are required for staffing and operational setup.
- Immigration File Opening: AED 700 – 1,000
- Establishment Card: AED 650 – 750
- Visa Allocation (Per Visa): AED 3,000 – 5,000
- Signboard Approval: AED 500 – 1,500
Estimated Total: AED 1,850 – 8,000 (based on staff needs)
Important Note
These figures are approximate and may change based on your cafeteria size, menu type, location, and whether you operate as a walk-in or delivery-only business. Final costs are confirmed only after authority approvals.
You can contact IBG Consultancy to get you a precise cost estimate for free for your plans to open a cafeteria in Dubai.
Total Estimated Cafeteria License Cost in Dubai 2026
The overall cost of setting up a cafeteria in Dubai depends on your location, shop size, and business model. Below are general estimates to help with planning.
- Low-budget setup: AED 25,000 – 35,000
Suitable for small spaces, basic fit-out, and delivery-focused or low-footfall locations. - Mid-range setup: AED 35,000 – 50,000
Ideal for standard mainland cafeterias with walk-in customers and moderate staffing. - Premium or prime-location setup: AED 50,000 – 70,000+
Applies to larger shops, busy areas, higher fit-out standards, and multiple staff visas.
As mentioned, these figures are estimates and may change based on approvals, menu type, and authority requirements.
Hidden and Ongoing Costs Most Entrepreneurs Miss
When you start a cafeteria, the license fee is not the only expense. Many costs come later, and they can add up quickly if you are not prepared. Here are the most common hidden and ongoing expenses that many new business owners overlook:
- License Renewal Fees: You must renew your license every year. If you miss the deadline, you can face fines or closure.
- Annual Inspections: Dubai Municipality and food management authorities inspect your kitchen and hygiene standards regularly. These inspections often require extra fees and improvements.
- Food Safety Compliance Updates: Food handler certificates and training must be renewed periodically. This is required to keep your business operating legally.
- Staff Visa Renewals: If you hire staff, their visas must be renewed every year or every few years depending on the visa type. This cost is ongoing.
- Waste Management Contracts: Food setups must have approved waste disposal and recycling contracts. This is a monthly or yearly expense.
- Municipality Fines for Non-Compliance: If your kitchen or hygiene standards are not maintained, you can receive fines. These fines can be much higher than you expect and can also delay your license renewal.
Can You Reduce the Cost of Opening a Cafeteria in Dubai?
Yes, you can reduce the total cost if you plan carefully. Many entrepreneurs spend more than necessary because they do not choose the right setup from the start. Here are practical ways to save money without risking compliance or quality.
- Choose the Right Location:
The cost of approvals and rent varies a lot depending on the area. Choosing a less expensive neighborhood can lower your setup and ongoing expenses. You can still build a strong customer base with the right marketing. - Start With a Delivery-Only Model:
If you begin as a delivery-only cafeteria, you can avoid high rental and fit-out costs. This model also reduces the need for a large seating area. Later, you can expand to a physical shop once your business grows. - Use Shared Kitchens Instead of Independent Shops:
Shared kitchens or “cloud kitchens” allow you to rent kitchen space with fewer costs. You share utilities and equipment, which lowers your initial investment. This is a good option for new businesses testing their menu. - Avoid Penalties Through Compliance:
The best way to save money is to avoid fines. Make sure you follow all food management rules, keep your documents updated, and pass inspections on time. Penalties can be expensive and can delay your license renewal.
Steps to Obtain a Cafeteria License in Dubai
Follow these steps carefully to avoid delays and start your cafeteria smoothly in Dubai.
1. Choose Your Business Activity
Start by deciding the type of cafeteria you want to open. This includes your menu, service style (takeaway, delivery, or dine-in), and target customers. Your activity choice affects the license type and approvals needed.
2. Reserve a Trade Name
Pick a unique business name and submit it for approval. The name must follow Dubai’s rules and cannot match any existing business.
3. Get Initial Approval
Once the trade name is approved, apply for initial approval. This allows you to continue with the next steps, including selecting a shop and preparing documents.
4. Select a Shop and Register Ejari
Choose a suitable location for your cafeteria and sign the lease. Then register the tenancy contract through Ejari. This is required for most approvals and is a key part of the setup process.
5. Apply for Municipality & Food Safety Approvals
Submit your documents to Dubai Municipality and the Food Safety Department. They will review your kitchen setup, hygiene plan, and food safety measures.
6. Get Kitchen Layout Approval
Your kitchen layout must be approved by authorities. This includes the placement of equipment, storage areas, and hygiene systems.
7. Final License Issuance
After all approvals are complete, the final license is issued. Once you receive it, you can legally start operating your cafeteria.
Is Opening a Cafeteria Business Setup in Dubai Profitable?
Opening a cafeteria in Dubai can be profitable, but it depends on how well you manage costs and revenue. The initial setup and licensing can be high, especially in busy areas. However, cafeterias can generate steady income if you keep your menu simple, control expenses, and serve customers consistently. The key is to balance your operating costs with your daily sales.
Some menu items bring higher profit margins than others. Simple foods like sandwiches, pastries, juices, and coffee often cost less to prepare but sell at a good price. These items also move fast and attract regular customers. High-margin items like breakfast combos and snack bundles can help increase your daily revenue without increasing costs much. A strong menu strategy is one of the best ways to improve profitability.
Delivery platforms also play a major role in cafeteria profits. Many cafeterias grow quickly through apps like Deliveroo, Talabat, and Uber Eats because they reach more customers without needing a big shop. But delivery commissions can reduce profits, so it is important to set prices carefully. Another major factor is competition. Dubai has many food options, so your cafeteria must offer something unique, whether it is pricing, taste, or convenience. With the right plan, a cafeteria can be a successful and profitable business in Dubai.
Ready to Start Your Cafeteria Business in Dubai, UAE?
Want a precise cost estimate and step-by-step support for your cafeteria setup? Contact IBG Consultancy today and we will guide you through the entire process.
Frequently Asked Questions (FAQs)
1. How much does a cafeteria license cost in Dubai?
The total cost varies based on location, shop size, and approvals. It includes government fees, food safety approvals, and setup costs.
2. What approvals do I need from the Dubai Municipality to open a cafeteria?
You need approvals for kitchen layout, hygiene standards, and food safety compliance. The municipality checks your premises before issuing the final permit.
3. Can I start a cafeteria business without a physical shop?
Yes. You can start with a delivery-only model or a cloud kitchen. This reduces rent and fit-out costs but still requires food safety approvals.
4. What is the difference between a cafeteria and a restaurant license in Dubai?
A restaurant license allows full dining services and larger kitchen operations, while a cafeteria license is for quick-service food and simpler setups.
5. Do I need a business structure before applying for a cafeteria license?
Yes. You must choose the right business structure and secure a trade license from the Dubai Department of Economic Development before starting.
6. Is a food license from Dubai Municipality required for every food business in Dubai?
Yes. Any food business must obtain a food license from Dubai Municipality and follow food safety and hygiene rules.
7. What is the typical cost of opening a cafeteria in Dubai?
The cost of opening a cafeteria includes licensing, approvals, and setup. A basic setup can start from a lower budget, but the total cost varies depending on your plan.
8. Can I offer cafeteria services in Dubai without a proper license?
No. Operating without the correct license can lead to fines and closure. You must comply with Dubai Municipality’s food safety regulations.
9. How do I apply for a cafeteria license in Dubai?
You need to reserve a trade name, get initial approval, secure a shop, complete food and safety checks, and then receive the final business license.
10. Is launching a cafeteria in Dubai a good idea?
Yes, if you plan carefully. Dubai’s food industry has strong demand for quick and affordable food. A good location, menu, and compliance plan can make it successful.
