8 Steps Guide to Securing Cafeteria License in Dubai

by Sweta Bose 10, Apr 2019

8 Steps Guide to Securing Cafeteria License in Dubai

Considering the statistical figures in the Middle East, the United Arab Emirates without any doubt is one of the largest and fastest-growing economies. The restaurant and small cafeteria sector particularly in Dubai, over the past few years, has seen immense growth.

A cafeteria, is a type of food service location in which there is little or no waiting staff table service.  Hereby opening up a cafeteria in Dubai will require you only a few employees.

From a cultural standpoint, cafeteria largely serve as centers of social interaction: the coffeehouse provides patrons with a place to congregate, talk, read, write, entertain one another, or pass the time, whether individually or in small groups. Since the development of Wi-Fi, coffeehouses with this capability have also become places for patrons to access the Internet on their laptops and handsets.

With people willing to try diversified cuisines on the go, the focus on businessmen around the globe are eyeing towards opening a cafeteria in Dubai.

Why to Open Cafeteria in Dubai in 2019?

Stimulated as worldwide ‘foodie’ movement, it is seamless to respond on why Dubai and Abu Dhabi are exciting new destinations for opening a cafeteria in 2019:

  • A thriving and diverse array of customers from every continent of the world: Asia, Europe, The Americas, Australasia and the Middle East
  • Dubai has one of the fastest growing tourism sector in the world
  • Strong government commitment for growing the economy and GDP
  • Attractive incentives for starting a restaurant or cafeteria in the food & beverage industry in Dubai

Dubai which is not only the top-ranked business hub but also known for mouth-watering delicacies it offers with global cuisines to select from. Considering the booming economy of Dubai and 365 days cosmopolitan hustle bustle the city witnesses, opening up a cafeteria in Dubai can be a very promising venture.

Checklist for Getting your Cafeteria License in Dubai

Securing the required license is a vital requirement if you are planning to open up a restaurant or set up a cafeteria in Dubai.

1.Blueprint of the Cafeteria plan

Arrange the blueprint documents for the following

  • space for food processing and storage
  • sanitary areas such as restrooms
  • windows and ventilation system
  • location of the equipment used to process the food
  • entry and exit passages
  • location of the washing machines

2.The approval on construction plans

The approvals has to be taken while meeting the requirements of the Food and Safety Department with these licenses in place:

  • food consignment release license
  • pork permit for handling and serving pork products
  • vehicle permit for transporting food products

3.  Food Product Establishment License

Apply for a No-Objection Certificate (NOC) on food product establishment trade license from the Food Safety Department

4.  Tenancy Contract for your Location

While a Free Zone may seem like a lower cost option in which to establish a business is not likely to be a particularly prosperous option. Favouring on a suitable location matters for a successful cafeteria business in Dubai and so does negotiating on a realistic rent and occupancy cost.  Signing a tenancy contract with your landlord vouch as a supporting document to bag the cafeteria license.

5.  Collaborate with a Local Sponsor

For setting up a cafeteria in Dubai Mainland or on-shore, a local sponsor is an Emirati or UAE national, who acts as a sleeping partner of your company. An agreement with your partner needs to be signed in a notary public court. An LLC company owner is supposed to nominate the local sponsor with a minimum of 51% equity sharing as per the UAE company law and Civil law.  For a smooth initiation of your cafeteria business, it is essential to know about incorporating business set up in Dubai.

6. Department of Economic Development

 Submitting all the above documents to DED is the final step to the application of your cafeteria license in Dubai. Upon getting the approvals just hold back and relax while the DED and Dubai Municipality work on getting you the license within a week.

7. Visa for Staff Members

To apply for visas for workers who are required to run your cafe, register your cafeteria license  with the Ministry of Labor and the Immigration Department.

8. Trade License

For trade license approval from the Department of Tourism and Commerce Marketing following documents suffice:

  • License application signed by the company managers or their legal representatives
  • Memorandum of Association (MOA)
  • Attested company name approval letter from the DED
  • Passport copy of management partners

Securing the license for your cafeteria is the first step. Acquiring a beautiful venture through right business strategies is what is foreseen for emerging successful among the competition.

Cafeteria Cost in Dubai

Cost depends on the idea of the business. The larger your plan; the more you will need the capitals. It also is subject to various other factors:

  • the number of staff
  • the outlet and layout of the cafeteria
  • interior of the kitchen
  • the menu
  • The locality
  • The ambiance concept

Coming to know the cost for a cafeteria in Dubai can be very subjective shall leave an overwhelming reaction. Although getting returns from your investment on cafeteria business is not dependent on mere luck in Dubai but bends more on a strategic approach towards running your cafeteria business.

How to get your cafeteria booming in Dubai?

Here are the critical pointers to be nurtured. Paying attention to these aspects will fetch you a hefty profit more likely sooner than you expect!

1.Choice of Location

These are vital factors to score on your location factor

  • Accessibility
  • Parking space
  • Visibility
  • High footfall
  • The high urban commercial/resident population within a one-kilometer radius.

2.  Cafeteria’s Occupancy Costs

The rent is recommended to not exceed 10% of your expected sales turnover annually.

3. Cafeteria’s Lease Agreement

Proper negotiation serves well for the times to come. Do take time to read through and understand in details the tenancy contracts you are about to sign. Do not hesitate to clarifying your tenancy terms should be supportive of your new venture, you will need that support throughout the tenancy period, so better start right.

4. Standard Operating Systems

This is a crucial notch for running a successful cafeteria. Ensure that your food business is run professionally with a common direction for staff, management and owner. Daily tasks are formalized into procedures which leads to sync among the staff. Also, customers come back for: consistency and efficiency in product and service.

5. Concept and Menu

The consumer surveys repeatedly shows that they will keep on coming back to their favorite place loyally for a combination of good food, excellent service and good ambience. The Ambiance is the coating and good food and service are the base. Take a specialist approach to your cafeteria menu engineering and kitchen equipment that compliment and support your menu.

6. Investment in Construction and Equipment

Overspending during the initial stages can be fatal. Allocate your budget keeping in mind that your production and service win consumers, your ambience keeps them comfortably coming back for more.

7. Capitalization

Make sure you have sufficient funds and working capital incorporated as contingency funds in your cafeteria business plans.

8. A well Organized and Implemented Accounting System 

An excellent accounting system that addresses the core activities the food business should incorporate:

  • purchasing system
  • Handling orders accounts
  • Production accounts
  • Waste accounts
  • Part-time hours handling
  • Fixed cost management
  • Variable cost management
  • Prime costs of the cafeteria

9. Trained Cafeteria staff

When you realize and believe that your staff and management are the ambassadors of your business, you will not want to take a chance by ignoring the crucial importance of pieces of trainings and motivational growth of your key personnel.  A well-motivated team that receives regular training and growth opportunities can be your best asset.

The cafeteria is a thriving venture in Dubai though challenging as well, due to the high competition it faces. With the correct direction on planning and execution, one can concoct an adorable cafeteria as many investors are looking to invest in this sector. If you are keen on starting a cafeteria in the city of riches, just jump in and contact us at Commitbiz. We are there to cater to your every query and help you along the way to a rewarding cafeteria business in Dubai.

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