How Much Does a Cafeteria License Cost in Dubai?

A cafeteria license in Dubai allows entrepreneurs to run small food outlets with limited menus and streamlined regulatory requirements. The Department of Economy and Tourism (DET) issues the trade license and officially registers the business activity.

Dubai Municipality monitors food safety, hygiene standards, and daily operational compliance for all cafeteria establishments. This license is suitable for businesses serving ready-to-eat foods, snacks, beverages, and light meals that do not require complex cooking processes. Authorities design the license framework to encourage affordable food ventures with faster approvals and lower cafeteria setup costs.

Note: Applicants must understand the difference between a cafeteria and a restaurant trade license before selecting their business activity. Many investors assume both licenses are similar, but cafeterias follow narrower operational rules and lower compliance obligations.

Key Differences Between Cafeteria and Restaurant License in Dubai

The difference between a cafeteria and a restaurant license in Dubai lies in several key factors:

• Menu Scope: Cafeterias focus on ready-made items, sandwiches, pastries, and beverages, while restaurants prepare elaborate dishes requiring extensive cooking
• Kitchen Requirements: Cafeterias need basic preparation areas, whereas restaurants demand commercial-grade cooking facilities with multiple stations
• Space Regulations: Cafeterias operate in compact spaces starting from 500 square feet, but restaurants typically require larger premises
• Licensing Complexity: Cafeteria approvals process faster because authorities recognize their simpler operational nature

Your cafeteria cannot serve alcohol under any circumstances. Dubai reserves liquor licenses for specific restaurant categories that meet stringent criteria. Activity Code 552001 applies to your cafeteria business, placing you in a streamlined regulatory pathway. Cafeteria businesses register under specific food and beverage activity codes as defined by DET. These codes may change based on updates or the business structure.

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Expect to spend between AED 24,000 and AED 35,000 on cafeteria licensing fees alone. This amount covers regulatory approvals, not operational setup costs. Different government departments charge separate fees at each approval stage, including:

• Trade Name Registration: AED 620 to AED 750. Choose a unique business name that reflects your brand.
• Initial Approval Fees: AED 220 to AED 420. Government departments review your business plan and confirm eligibility.
• Memorandum of Association: AED 2,000 to AED 3,000. Legal professionals prepare your company formation documents.
• Municipality and Food Safety Approvals: AED 5,000 to AED 10,000. Inspectors examine your premises, equipment, and hygiene protocols.
• Cafeteria License Fee: AED 10,000 to AED 25,000. The fee depends on your location and business structure.
• Ejari Registration: Approximately AED 500. Dubai mandates Ejari registration to regulate rental relationships.
• Visa Processing and Immigration: AED 600 per person. You need legal residency to operate your business.

Note: A Mainland business license typically costs more than Free Zone alternatives due to additional compliance requirements. Free Zone cafeteria licenses are usually limited to operations within the Free Zone. They do not allow retail sales to the general public outside the zone.

If you’re curious about the costs of business licenses, check out our detailed blog on business license costs in Dubai.

Total Startup Investment Beyond the Cafeteria License in Dubai

Starting a cafeteria involves additional costs beyond the licensing fees. Here are the key expenses you should budget for:

• Location Rental: AED 40,000 to AED 120,000 annually, depending on the area.
• Interior Design and Furniture: AED 100,000 to AED 200,000. Budget for quality finishes, comfortable seating, and décor.
• Kitchen Equipment: AED 50,000 to AED 150,000 for refrigerators, coffee machines, grinders, and prep stations.
• Staffing Costs: AED 20,000 to AED 50,000 for recruitment, visa processing, and first-quarter salaries.

Small-scale cafeterias in moderate locations require around AED 180,000 to AED 300,000. Mid-scale or branded cafeterias targeting premium markets may need AED 350,000 to AED 600,000 or more.

Factors That Affect the Cost

Several factors influence the cost of your cafeteria license. Here are the key elements that determine the overall fees:

• Location: Downtown commands premium prices compared to Business Bay, JLT, or Sharjah, where rental costs drop considerably.
• License Type: Mainland setups require higher investment than Free Zone options, though the Mainland offers broader market access.
• Menu & Operating Model: Casual cafeterias cost less than premium establishments, while delivery-only models reduce overhead significantly.
• Additional Permits: Special food items or extended operating hours may require additional permits and associated fees.

Understanding these variables helps you estimate the cost of a cafeteria license in the UAE accurately for your specific concept.

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Planning your cafeteria’s budget accurately is crucial for a successful launch. Here are the essential costs you need to consider:

• License Costs: Allocate AED 24,000 to 35,000 for core licensing fees and regulatory approvals initially.
• Rent Estimates: Budget AED 40,000 to 120,000 annually, researching locations matching your target demographic and budget.
• Fit-Out Estimates: Reserve AED 150,000 to 350,000 for interior design, furniture, and kitchen equipment purchases.
• Staffing Costs: Plan AED 20,000 to 50,000 for initial recruitment, visas, and first-quarter salaries combined.

Year-1 Budgeting Tips: Maintain a 20% contingency fund for unexpected expenses, regulatory changes, or market adjustments. Plan for Dubai company license renewal fees early, as renewals require budgeting within your first operational year.

If you’re really thinking about starting a business in Dubai, learn more about trade licenses and the process involved. Read our guide on how to get a trade license in Dubai.

Launching a cafeteria in Dubai offers tremendous potential, especially with the city’s surging visitor numbers and thriving F&B culture. The Dubai cafeteria license process, while detailed, becomes manageable when you understand cost breakdowns and regulatory requirements clearly.

Whether you choose a small takeaway or a high-end branded cafeteria, accurate budgeting ensures smooth operations. Remember to get a food business license in Dubai through authorized channels, keeping renewal fees and compliance costs in your long-term financial planning. With proper preparation, your cafeteria can thrive in one of the world’s most dynamic culinary landscapes.

If you need expert guidance, our experienced team is here to assist you with every step of the process. SafeLedger brings years of expertise in navigating Dubai’s business environment, helping you streamline your cafeteria setup and avoid common pitfalls. Contact us today!