Introduction: Cost to Open a Cafeteria in Dubai
Dubai is one of the most sought-after business destinations in the world, attracting entrepreneurs from various industries, including the food and beverage sector. The rising demand for cafeterias and coffee shops has made Dubai an excellent location for starting a cafeteria business. Whether you are planning to launch a small tea shop, a pet-friendly cafe, or a large cafeteria, understanding the cost to open a cafeteria business in Dubai is essential for a successful setup. Opening a cafeteria in Dubai requires fulfilling various legal, financial, and infrastructure requirements. From acquiring the necessary cafeteria business license in Dubai to investing in real estate, equipment, and staff, there are multiple expenses involved. Entrepreneurs must also comply with the regulations set by the Dubai Municipality, Department of Economic Development (DED), and the Food Safety Department.
In this detailed guide, we will explore all aspects of cafeteria shop setup costs in Dubai, including licensing fees, rental costs, operational expenses, and other factors that affect the total investment. We will also provide insights into choosing the best business setup company in Dubai to streamline the process.
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Why Choose Dubai to Start a Cafeteria Business in 2025?
Dubai presents a thriving business environment, making it a prime location for launching a cafeteria business.
Here’s why investing in a cafeteria business setup in Dubai is a profitable opportunity in 2025:
1. Booming Food & Beverage Industry
- The UAE’s food and beverage market is expected to grow at a CAGR of 6.8% from 2024 to 2028.
- Rising demand for cafes, tea shops, and specialty cafeterias due to an increasing expatriate population.
- High disposable income and a culture of dining out contribute to the success of cafeteria businesses in Dubai.
2. Strategic Location & Tourism Growth
- Dubai welcomed over 17 million international tourists in 2024, a number expected to increase in 2025.
- The city’s strategic location attracts global investors, making it an ideal hub for the food and beverage sector.
- Pet-friendly and themed cafeterias are gaining popularity among tourists and locals alike.
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3. Business-Friendly Regulations & Free Zones
- Cost of company registration in Dubai is lower compared to many international markets.
- Entrepreneurs can apply for the cheapest cafeteria business license in Dubai through Free Zones or mainland options.
- The low tax environment (0% personal tax, 9% corporate tax above AED 375,000 profit) makes Dubai an attractive destination.
4. Availability of Business Setup Support
- Best business setup consultants in Dubai, such as Infibiz, provide complete assistance in setting up a cafeteria.
- Access to specialized cafeteria business setup services in Dubai to ease the legal and operational process.
5. High Consumer Demand & Diverse Customer Base
- A multicultural population creates a vast market for diverse cafeteria menus and food concepts.
- High demand for organic, vegan, and pet-friendly cafeterias is on the rise.
- The growing working-class population in Dubai increases the need for convenient, affordable dining options.
Market Statistics: Cafeteria Business in Dubai (2025)
| Factor | Statistics (2025) |
|---|---|
| Total Cafeterias in Dubai | 5,000+ |
| Annual Revenue of Cafeterias | AED 3 Billion+ |
| Avg. Spending Per Customer | AED 20 – 50 |
| Expected F&B Market Growth | 6.8% CAGR |
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Steps to Start a Cafeteria in Dubai (2025)
1. Business Planning and Concept Finalization
- Decide on the type of cafeteria (e.g., traditional, specialty coffee shop, pet-friendly café).
- Conduct market research to identify target customers and competitors.
2. Choose a Suitable Location
- Select a high-footfall area for maximum visibility and accessibility.
- Ensure the location complies with Dubai Municipality’s zoning laws for food businesses.
3. Obtain a Cafeteria Business License in Dubai
- Apply through the Department of Economic Development (DED).
- Choose the appropriate trade name and submit it for approval.
- Obtain initial approval and complete legal formalities.
4. Secure Dubai Municipality Approvals
- Get approval from the Food Safety Department for the kitchen layout.
- Ensure the premises meet health and safety regulations.
- Obtain necessary permits for waste management and hygiene compliance.
5. Finalize Rental Agreement and Ejari Registration
- Sign a commercial lease agreement for the selected location.
- Register the rental contract with Ejari to proceed with licensing.
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6. Interior Fit-Out and Kitchen Setup
- Design and furnish the cafeteria as per Dubai Municipality regulations.
- Install kitchen equipment and food preparation areas according to safety standards.
7. Hire Staff and Obtain Work Visas
- Recruit trained staff for food preparation, service, and management.
- Apply for work permits and residence visas for employees.
8. Marketing and Business Launch
- Create an online presence through social media and business listings.
- Conduct promotional campaigns to attract initial customers.
- Organize a grand opening to establish brand awareness.
Cost to Open a Cafeteria in Dubai (2025)
1. Licensing & Registration Costs
Before starting operations, obtaining a cafeteria business license in Dubai is mandatory. The estimated costs for a food cafeteria business license in Dubai are outlined below:
| Particulars | Estimated Cost (AED) |
|---|---|
| Initial Approval | 245 |
| Name Reservation | 620 |
| Local Service Agent Agreement (MOA) | 540 |
| Local Service Agent (LSA) | 4,000 |
| DED Payment Voucher (Trade Name) | Up to 6,000* |
| Dubai Municipality Approval | 3,000 |
| Business Setup Consultancy Fee | 1,000 |
| Total Estimated License Cost | 15,405 |
*5% of Ejari (rental contract) will be added to the DED Payment Voucher.
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2. Real Estate & Rental Costs
Finding the right location is crucial for your cafeteria business setup in Dubai. The cost of renting a commercial space varies based on the area and size. Below is a breakdown:
| Location | Estimated Annual Rent (AED) |
| Downtown Dubai | 100,000 – 300,000 |
| Business Bay | 80,000 – 250,000 |
| Deira | 50,000 – 150,000 |
| Al Barsha | 60,000 – 170,000 |
| JLT & Marina | 90,000 – 250,000 |
| Sharjah (alternative) | 30,000 – 100,000 |
Calculate your business setup cost.
3. Equipment & Interiors
Setting up a cafeteria in Dubai requires proper investment in kitchen equipment, furniture, and interior design. Here’s a cost estimate:
| Item | Estimated Cost (AED) |
| Commercial Kitchen Equipment | 50,000 – 150,000 |
| Interior Design & Furniture | 30,000 – 100,000 |
| POS System & Software | 5,000 – 20,000 |
| Refrigeration & Storage | 20,000 – 50,000 |
| Miscellaneous Expenses | 10,000 – 30,000 |
| Total Estimated Cost | 115,000 – 350,000 |
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4. Staff & Salaries
Hiring employees for a cafe business license in Dubai involves paying salaries, visa processing fees, and medical insurance:
| Staff Position | Monthly Salary (AED) | Annual Cost for 3 Staff (AED) |
| Chef | 6,000 | 216,000 |
| Cashier | 3,500 | 126,000 |
| Waiters/Service Staff | 3,000 | 108,000 |
| Total Annual Staff Cost | 450,000+ |
5. Other Operational Costs
| Expense | Estimated Annual Cost (AED) |
| Utilities (Water, Electricity, Gas) | 20,000 – 50,000 |
| Marketing & Advertising | 10,000 – 50,000 |
| Business Insurance | 5,000 – 20,000 |
| Total Estimated Cost | 35,000 – 120,000 |
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Benefits of Starting a Cafeteria in Dubai in 2025
Dubai is a global hub for business, tourism, and innovation, making it an ideal destination for launching a cafeteria business. With a booming food and beverage industry, increasing consumer demand, and a strong economy, the cost to start a cafeteria business in Dubai can be a worthwhile investment. Here are the top benefits of starting a cafeteria business in Dubai in 2025.
1. High Demand for Cafeterias and Coffee Shops
Dubai has a thriving café culture, with residents and tourists constantly seeking new and unique dining experiences. The demand for cafeterias, coffee shops, and themed cafes continues to rise, making it an excellent time to invest in a cafeteria business setup in Dubai.
- Large expatriate population with diverse food preferences
- High demand for specialty coffee, organic food, and quick bites
- Growth in pet-friendly and themed cafeterias
2. Business-Friendly Policies & Tax Benefits
Dubai offers a low-tax business environment, making it easier for entrepreneurs to start a cafeteria business. Key benefits include:
- 0% corporate and personal income tax
- 100% foreign ownership in free zone cafeteria businesses
- Easy licensing process with the cafeteria business license in Dubai
By choosing the cheapest cafeteria business license in Dubai, entrepreneurs can significantly reduce setup costs and enjoy long-term profitability.
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3. Strategic Location & Tourism Growth
Dubai attracts millions of tourists every year, making it an excellent market for cafeterias, restaurants, and food businesses. The cost of cafe setup in Dubai can be recovered quickly due to:
- High foot traffic in commercial areas and malls
- Growing number of business hubs and corporate offices
- Events and expos attracting international visitors
With the right cafeteria shop setup in Dubai, businesses can tap into this expanding market and generate consistent revenue.
4. Diverse Market with Opportunities for Innovation
Dubai is home to a multicultural population, allowing entrepreneurs to experiment with different cuisines and concepts. Some trending opportunities include:
- Healthy food cafeterias (vegan, organic, keto-friendly)
- Specialty coffee shops and tea bars
- Pet-friendly cafeterias (low-cost business setup in Dubai for pet lovers)
- Smart cafeterias with digital ordering and AI-driven services
By understanding the preferences of the Dubai market, business owners can create a unique selling point (USP) for their cafeteria business.
5. Affordable Licensing & Business Setup Options
Dubai offers multiple business setup options, including mainland and free zone cafeterias. Entrepreneurs can choose between:
| Business Setup Type | Cost & Benefits |
|---|---|
| Mainland Cafeteria | Wider market reach, requires a local sponsor, higher rental costs |
| Free Zone Cafeteria | Lower licensing costs, full foreign ownership, limited market access |
Choosing the best business setup consultant in Dubai can help entrepreneurs find the cheapest cafeteria business license in Dubai and reduce overall costs.
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6. Growing Online Food Delivery Market
The demand for food delivery services in Dubai has surged, creating additional revenue streams for cafeteria businesses.
- Partnering with food delivery platforms like Talabat, Deliveroo, and Zomato
- Setting up a cloud kitchen or online-based cafeteria business
- Increasing customer base through social media marketing and digital promotions
Starting a cafeteria business in Dubai allows entrepreneurs to expand their reach beyond physical locations and capitalize on the online food market.
Starting a cafeteria in Dubai in 2025 is a lucrative business opportunity due to its high demand, business-friendly policies, and growing tourism sector. With strategic planning and the right investment in a cafeteria business license in Dubai, entrepreneurs can establish a profitable food and beverage venture.
Mainland vs Freezone Company Setup in UAE: Cost Comparison
Conclusion
Starting a cafeteria business in Dubai in 2025 is an exciting and profitable venture, but it requires thorough planning and financial preparation. The cost to start a cafeteria business in Dubai depends on various factors such as location, business size, licensing, and operational expenses. With a growing demand for food and beverage businesses, Dubai provides an excellent market for entrepreneurs looking to invest in a cafeteria shop setup in Dubai.
From obtaining a cafeteria business license in Dubai to securing the right location and hiring staff, each step involves specific costs and legal procedures. The cost of cafe setup in Dubai can range from AED 200,000 to AED 600,000, making it crucial to have a strategic budget. Choosing the cheapest cafeteria business license in Dubai or opting for low-cost business setup in Dubai can help reduce expenses.
To ensure a successful launch, working with the best business setup company in Dubai is highly recommended. A trusted consultant can help navigate legal requirements, acquire the necessary approvals, and handle paperwork efficiently.
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How Infibiz Can Help You Start a Cafeteria in Dubai
Infibiz is the best business setup consultant in Dubai, offering complete cafeteria business setup services in Dubai. With years of expertise in company registration, trade licenses, and Dubai Municipality approvals, Infibiz simplifies the process of launching your cafeteria business.
Why Choose Infibiz?
✅ Expert Guidance: From choosing the right location to obtaining a food cafeteria business license in Dubai
✅ Cost-Effective Solutions: Helping entrepreneurs find the cheapest cafeteria business license in Dubai
✅ Hassle-Free Setup: Handling paperwork, approvals, and cost of company registration in Dubai
✅ Ongoing Support: Assisting with staff hiring, visa processing, and marketing
For a smooth and cost-efficient cafeteria business setup in Dubai, contact Infibiz today and turn your business dream into reality!
