Cafeteria License Cost in Dubai: How Much It Costs

How much does a cafeteria/tea shop license cost in Dubai?

Understanding the financial requirements for a tea shop or cafeteria license is critical for budgeting and planning. The total cost varies based on factors such as location, license type, and operational scope.

Breakdown of licensing costs

Here’s an approximate breakdown of the costs involved in obtaining a tea shop/cafeteria license in Dubai:

These costs are indicative and may vary based on the size and location of your tea shop, as well as your exact activity and licensing package.

In many typical mainland cases, combined first‑year government fees for a small cafeteria or tea shop tend to fall roughly in the AED 28,000–45,000 range, but the final figure should always be confirmed with DET and Dubai Municipality at the time of application.

Additional expenses: fit-out, POS systems, and marketing

In addition to licensing fees, you should account for operational and setup expenses, including:

• Fit-out costs: designing and furnishing the shop can cost anywhere from AED 50,000 to AED 500,000, depending on the size and theme.
• POS systems: a reliable Point of Sale (POS) system is essential for managing transactions and inventory, with costs ranging from AED 3,000 to AED 8,000.
• Marketing: effective marketing strategies, including digital campaigns and social media promotions, typically cost between AED 5,000 and AED 15,000.

For budgeting purposes, many small-scale mainland cafeterias and tea shops in secondary locations end up with a total initial investment (including fit‑out, equipment and working capital) in the region of AED 180,000–300,000, while mid‑scale or more branded concepts in prime areas can easily reach AED 350,000–600,000 or more.

How to obtain a cafeteria/tea shop license in Dubai

Acquiring a tea shop or cafeteria license in Dubai consists of several steps, each designed for compliance with local regulations and operational readiness. This guide provides a step-by-step breakdown of the process.

Step 1. Choose the right location

Location plays a critical role in the success of any tea shop or cafeteria. Dubai offers a variety of strategic areas, each catering to different customer demographics and business models.

Factors to consider when choosing a location:

• Customer accessibility. High-traffic areas such as malls, business districts, or residential communities ensure steady footfall.
• Proximity to suppliers. Being close to your suppliers can reduce logistics costs and ensure timely delivery.
• Rental costs. Compare rents across Dubai's mainland and free zones to align with your budget.
• Regulatory requirements. Ensure the premises meet Dubai Municipality’s standards for F&B establishments.

The chosen location must also align with your license type — mainland or free zone — to avoid operational restrictions.

Step 2. Develop a business plan

A well-structured business plan acts as a blueprint for your venture and helps align your goals with market expectations. While this is not a mandatory requirement, it will help you a lot.

Key components of a business plan include:

• Market analysis. Research customer preferences and competitor offerings in Dubai’s tea and cafeteria market.
• Financial projections. Outline expected costs, revenues, and profit margins.
• Operational details. Specify your menu, target audience, and staffing requirements.
• Funding strategy. Detail how you plan to finance your venture, whether through personal savings, investors, or loans.

A strong business plan not only streamlines the licensing process but also enhances your chances of securing approvals from relevant authorities.

Step 3. Register your trade name and get initial approvals

Your trade name should reflect the nature of your tea shop or cafeteria while adhering to the guidelines set by the Dubai Economy and Tourism (DET, formerly the Department of Economic Development – DED) (for mainland businesses) or free zone authority (for free zones).

Steps to register your trade name:

• Pick a unique name that complies with the UAE’s naming conventions. Avoid names with religious or political references.
• Submit the name to the DET or the relevant free zone authority for approval.
• Pay the applicable trade name reservation fee (typically around AED 620–750, depending on the channel and optional add‑ons).

Once the trade name is approved, you can proceed to apply for initial approvals from the DET or free zone authority. These approvals confirm your eligibility to proceed with the licensing process.

Step 4. Submit the required documentation and apply for the business license

To officially apply for your tea shop/cafeteria trade license, you’ll need to submit a comprehensive set of documents. These typically include:

• A completed application form provided by Dubai Economy and Tourism (DET) for mainland setups, or by the relevant free zone authority.
• A copy of your trade name reservation certificate.
• Passport copies of all business partners and shareholders.
• Ejari (tenancy contract) for your chosen premises (for mainland setups).

Upon submitting these documents, pay the necessary licensing fees and await the issuance of your license.

Step 5. Comply with health and safety regulations

Compliance with Dubai’s health and safety standards is non‑negotiable for operating a tea shop or cafeteria. These regulations are enforced mainly by Dubai Municipality to ensure public well‑being. In practice, approvals and inspections by Dubai Municipality often continue even after you have received your initial trade license from DET or the free zone authority.

Essential health and safety requirements include:

• Kitchen design approval: your kitchen layout must meet specifications for ventilation, hygiene and fire safety as per Dubai Municipality guidelines.
• Food establishment / food hygiene license: you must obtain a separate food license from Dubai Municipality confirming compliance with food handling and preparation standards.
• Employee health cards: all staff involved in food preparation or service must have valid health cards issued by the Dubai Health Authority (DHA).
• Foodwatch registration and PIC: all food establishments must be registered on Dubai Municipality’s Foodwatch platform and have a designated Person In Charge (PIC) with approved food safety training on duty during operations.

Non-compliance with these regulations can delay your license approval or result in penalties after operations commence.

Estimated processing time

When all documents and layouts are correctly prepared, obtaining a mainland tea shop or cafeteria license in Dubai typically takes around 2–4 weeks. This timeframe covers trade name reservation, initial approvals, Ejari registration, issuance of the trade license and Dubai Municipality inspections for your food establishment license, but can be longer for larger or more complex premises.

Why is a license essential for tea shops and cafeterias in Dubai?

Operating a tea shop or cafeteria in Dubai without a valid business license can lead to severe consequences, including hefty fines, suspended operations, company shutdowns, or even legal actions. The government mandates a strict licensing process to ensure food safety, uphold public health standards, and regulate the growing F&B industry.

A valid license:

• Ensures regulatory compliance: Meets requirements set by Dubai Economy and Tourism (DET, formerly the Department of Economic Development – DED) and Dubai Municipality.
• Builds customer trust: A licensed establishment reassures customers about the quality and safety of the food and beverages served.
• Enables access to suppliers: Many wholesale suppliers and distributors work exclusively with licensed businesses.
• Provides legal protection: A license safeguards the business from legal disputes or claims related to non-compliance.

Not only does acquiring a trade license legitimize your business - it also opens doors to partnerships and growth opportunities within Dubai’s dynamic market.

Requirements for a tea shop/cafeteria license approval

In order to successfully acquire a cafeteria/tea shop license in Dubai, your company has to meet an array of stringent requirements set by the Dubai Municipality and other regulatory bodies. These requirements ensure that your business adheres to established food safety, hygiene, and operational guidelines.

Food safety and hygiene standards

Adhering to the norms of food safety and hygiene is a top priority for any tea shop or cafeteria in Dubai. These regulations aim to maintain high public health standards and prevent foodborne illnesses.

Key requirements include:

• Kitchen cleanliness. All cooking and preparation areas must be thoroughly sanitized and maintain cleanliness at all times.
• Storage facilities. Food must be stored at appropriate temperatures in designated storage zones to prevent contamination.
• Certified staff and PIC. All employees handling food must complete food hygiene training recognised by Dubai Municipality, and your establishment must have a designated Person In Charge (PIC) with an approved food safety qualification on duty.
• Foodwatch registration. Your business must be registered in Dubai Municipality’s Foodwatch platform, which is used to manage inspections, suppliers and food safety records.
• Waste management. Proper disposal of food waste and adherence to recycling protocols are mandatory.

Premises inspection by the Dubai Municipality

Before your tea shop license is approved, your premises will undergo a detailed inspection by the Dubai Municipality. The inspection ensures that your shop meets all regulatory and safety requirements.

Inspection criteria include:

• Proper ventilation systems in the kitchen and dining areas.
• Availability of clean and safe drinking water.
• Appropriate lighting and electrical systems to prevent hazards.
• Emergency exits and fire safety equipment in compliance with local laws.

Addressing these aspects beforehand can expedite the approval process and reduce potential delays.

Additional permits or certifications needed

In addition to the primary business/trade license, you may need to obtain supplementary certifications to operate your business:

• Food hygiene permit: certifies compliance with food preparation and handling standards.
• Signage permit: in case you intend to display a signboard outside your shop, a signage permit is mandatory.

These additional certifications help establish your business as fully compliant with Dubai’s regulatory framework.

Choosing the best location for your cafeteria/tea shop

The success of a tea shop or cafeteria in Dubai heavily depends on its location. Dubai’s dynamic landscape offers numerous opportunities, but selecting the right spot involves weighing several factors, such as foot traffic, customer demographics, and operational advantages.

High-traffic areas for cafes and tea shops

High-traffic areas are vital for ensuring consistent customer flow and maximizing revenue. Some of the most popular spots for tea shops in Dubai include:

• Downtown Dubai: home to iconic landmarks like Burj Khalifa and Dubai Mall, this area attracts tourists and residents alike.
• Dubai Marina: known for its waterfront views and dynamic nightlife, perfect for cafes targeting young professionals and tourists.
• Business Bay: a bustling commercial district with a large working population.
• Residential communities: areas like Jumeirah and Al Barsha are ideal for family-oriented tea shops.

Picking a location that aligns with your brand’s identity and target market ensures long-term profitability.

How professional consultants can help you get started

Navigating the intricacies of Dubai’s licensing process and regulatory landscape can be a rough endeavor, particularly if you are a first-time entrepreneur. Professional consultants can provide invaluable support at every stage of your tea shop setup.

Navigating the licensing process with ease

Consultants have extensive experience in dealing with Dubai Economy and Tourism (DET, formerly the Department of Economic Development – DED), Dubai Municipality, and free zone authorities. They can assist with:

• Trade name registration and reservation.
• Documentation preparation and submission.
• Securing initial approvals and inspections.

This expertise ensures a smooth and efficient licensing process, saving you time and effort.

Cost management and business support

Setting up a tea shop involves significant costs, from licensing fees to fit-out expenses. Professional consultants provide guidance on:

• Allocating the budget for setup and operational expenses.
• Identifying cost-saving opportunities without compromising quality.
• Accessing financing options or government incentives, if available.
• Providing accounting services and advice on VAT and corporate tax.

Their insights enable entrepreneurs to make calculated financial decisions and optimize their investments.

Start your cafeteria or tea shop in Dubai today!

From selecting the right license to choosing an ideal location and ensuring compliance with regulations, each step is crucial to your success. Collaborating with experienced consultants can simplify the process, allowing you to focus on delivering exceptional experiences to your customers. Get started today and make your business vision come true in Dubai’s thriving market!