How to Start Cafeteria Business in Dubai (2026): License, Cost & Step-by-Step Guide

Are you thinking about opening a small cafeteria in Dubai, Sharjah, Ajman, or Abu Dhabi? If so, this guide is perfect for you. In this article, I will explain everything you need to know about starting your own cafeteria business in the UAE. By the end of this post, you will have a clear step-by-step plan to get started.

In this article, I will show you how to choose the right location for your cafeteria easily. I will also explain which license you need to apply for. Finally, we will discuss the total costs involved in starting this business so you can plan your budget effectively.

How to start cafeteria business in dubai :-

First, try to pick a crowded area with a high population. Look for a spot where there aren’t many cafeterias nearby. Less competition means you have a better chance of succeeding quickly. Avoid areas that are already packed with similar shops. As a new business owner, it can take a long time to build your name in a crowded market.

Once you have picked the right location for your cafeteria, it is time to talk about the space. In Dubai and across the UAE, most property owners manage their spaces through real estate agencies. You should visit the real estate office directly to discuss the rent and lease terms. This is the easiest way to secure your spot.

Keep in mind that many brokers work in the UAE property market. Never give cash or make payments through a broker. Instead, go directly to the real estate office to handle your transactions. After paying, always make sure to get an official receipt and your tenancy agreement. You will need this agreement later to apply for your business license.

How to Apply for a Cafeteria License in Dubai (Step-by-Step + Costs) :-

The most important step to starting your cafeteria in Dubai is getting a Cafeteria License. Without this license, you cannot legally run a food business. Below, I have explained the entire process and the estimated costs in simple steps.

1. Trade Name Registration

The first step in how to start cafeteria business in Dubai is trade name registration. A trade name is the official name of your cafeteria. This name will appear on your business license and all legal documents.

Step 1: Choose a Suitable Trade Name

Start by selecting a name that matches your cafeteria business. The name should be short, clear, and easy to remember. Avoid using complex or confusing words. A simple name helps customers recognize your brand easily.

Make sure the name does not copy or resemble any existing brand or trademark. Using another company’s brand name is not allowed in Dubai and can lead to rejection.

Step 2: Follow Dubai Trade Name Rules

While choosing a trade name, you must follow the rules set by the Dubai Department of Economy and Tourism (DET). Do not use religious, political, or offensive words. Country names and famous personalities are also restricted.
It is recommended to include words like Cafe or Cafeteria in the name. This clearly shows your business activity and helps with faster approval.

Step 3: Check Trade Name Availability

Before applying, check if your chosen trade name is available. You can do this through the DET website, Dubai Business app, or an authorized service center. Always keep two or three backup names in case your first choice is not available.

Step 4: Apply for Trade Name Registration

Once the name is approved, submit your application to DET. You will need a passport copy and basic business details. After approval, you will receive a Trade Name Certificate.

Step 5: Pay the Trade Name Fee

The trade name registration fee usually ranges between AED 600 and AED 1,000, depending on the name type and activity.

Why Trade Name Registration Is Important

Trade name registration is a mandatory step when starting a cafeteria in Dubai. Without an approved trade name, you cannot proceed with the cafeteria license or other approvals.

2. Initial Approval :-

The second step in how to start cafeteria business in Dubai is getting Initial Approval.This approval confirms that the Dubai government has no objection to you starting a cafeteria business under your chosen trade name.

Initial approval does not allow you to operate the business. It only allows you to move forward with the licensing process.

Step 1: Submit the Initial Approval Application :-

After your trade name is approved, you must apply for initial approval through the Dubai Department of Economy and Tourism (DET). The application can be submitted online or through an authorized service center.

Step 2: Prepare the Required Documents :-

To apply for initial approval, you need the following documents:

• Passport copy of the business owner
• UAE visa copy or entry stamp
• Approved trade name certificate
• Basic business activity details (cafeteria)

All documents should be clear and valid to avoid delays.

Step 3: Review and Approval Process :-

DET will review your application and documents. They check whether your business activity follows Dubai regulations. If everything is correct, the initial approval is issued without any inspection.

This process is usually fast and simple.

Step 4: Pay the Initial Approval Fee :-

The initial approval fee typically ranges between AED 1,000 and AED 1,500, depending on the business activity and application method.

Step 5: Receive the Initial Approval Certificate :-

Once approved, you will receive an Initial Approval Certificate. This document is required for the next steps, including shop rental, Ejari registration, and municipality approvals.

Why Initial Approval Is Important :-

Initial approval is a mandatory step when starting a cafeteria in Dubai. Without it, you cannot rent a shop, apply for food safety approval, or receive the final cafeteria license.

3. Shop Rent & Ejari :-

The next important step in how to start cafeteria business in Dubai is renting a suitable shop and registering Ejari. Without a valid tenancy contract and Ejari, you cannot apply for a cafeteria license.

Step 1: Choose the Right Shop Location :-

Select a location with high foot traffic and daily food demand. Popular areas include labor accommodations, office zones, residential neighborhoods, and busy streets.

Avoid areas with too many cafeterias nearby. High competition can make it harder for a new business to grow.

Step 2: Ensure the Shop Is Municipality Approved :-

Before signing any agreement, confirm that the shop is approved by Dubai Municipality for food and beverage activity. The space must be suitable for a cafeteria kitchen setup, ventilation, and hygiene requirements.

Never rent a shop without checking this approval.

Step 3: Sign the Tenancy Contract :-

Once you select the shop, sign the tenancy contract with the property owner or official real estate office. The contract should clearly mention:

• Shop size
• Annual rent
• Payment terms
• Contract duration

Always collect an official receipt for every payment.

Step 4: Register Ejari :-

Ejari is the official rental registration system in Dubai. It is mandatory for all commercial properties. You must register Ejari using your tenancy contract.

Ejari registration proves that your shop is legally rented and is required for trade license issuance.

Step 5: Pay Rent and Ejari Fees :-

The cost of shop rent depends on the location and size. For a small cafeteria, annual rent usually ranges between AED 20,000 and AED 60,000.

Ejari registration fees are usually AED 220 to AED 300.

Why Shop Rent and Ejari Are Important :-

A valid tenancy contract and Ejari are mandatory documents for cafeteria licensing in Dubai. Without them, Dubai Municipality and DED will not process your license application.

Expert Tip :-

Always deal directly with the real estate office. Avoid giving cash to brokers without proper documentation. This helps prevent legal and financial issues later.

4. Municipality Food Approval :-

Municipality Food Approval is one of the most important steps in how to start cafeteria business in Dubai. Since a cafeteria handles food and drinks, approval from Dubai Municipality is mandatory before the final license is issued.

This approval confirms that your cafeteria follows food safety and hygiene standards set by the government.

Step 1: Submit the Food Approval Application :-

After completing shop rent and Ejari, you must apply for food approval through Dubai Municipality’s food control system. The application includes details about your cafeteria activity and kitchen setup.

Step 2: Prepare the Required Layout and Documents :-

You need to submit a basic kitchen layout and equipment plan. This shows how food will be prepared, stored, and served.

Common requirements include:

• Proper kitchen layout
• Hand wash and cleaning sinks
• Adequate ventilation and exhaust system
• Safe food storage area

Step 3: Municipality Inspection :-

Dubai Municipality may schedule a site inspection. During the inspection, officials check hygiene standards, cleanliness, and safety measures.

If everything meets the requirements, the approval is granted. If not, you may be asked to make small changes and request a re-inspection.

Step 4: Pay the Food Approval Fee :-

The food approval and inspection fee usually ranges between AED 2,000 and AED 5,000, depending on the size and type of cafeteria.

Step 5: Receive Municipality Food Approval :-

Once approved, you will receive an official food approval certificate. This document is required to proceed with the final cafeteria license issuance.

Why Municipality Food Approval Is Important :-

Without municipality food approval, you cannot legally operate a cafeteria in Dubai. This approval protects customers and ensures your business follows food safety laws.

Pro Tip :-

Plan your kitchen layout carefully before inspection. A well-organized kitchen helps you pass the inspection faster and avoids unnecessary delays.

5. Final Cafeteria License :-

After completing trade name registration, initial approval, shop rent & Ejari, and municipality food approval, the next and final step is obtaining your Cafeteria License. This license legally allows you to operate your cafeteria in Dubai.

Step 1: Prepare All Required Documents :-

Before applying, make sure you have all necessary documents ready:

• Approved trade name certificate
• Initial approval certificate
• Ejari (tenancy contract registration)
• Municipality food approval certificate
• Passport copy of the owner
• UAE visa / Emirates ID

All documents should be clear and valid to avoid delays.

Step 2: Submit License Application to DED :-

Apply for the Cafeteria License through the Dubai Department of Economy and Tourism (DET). You can submit online or via an authorized service center.

During the application, you must select the license type:

Commercial License – Food & Beverage Activity (Cafeteria).

Step 3: Pay the License Fee :-

The cost of the final cafeteria license typically ranges between AED 8,000 and AED 15,000, depending on the location and size of your cafeteria.

Step 4: Receive the License :-

Once your application is approved and fees are paid, DET issues the Final Cafeteria License. This document allows you to legally operate your cafeteria and open your doors to customers.

Step 5: Optional Permits :-

In some cases, you may also need additional permits:

• Signboard permit
• Gas connection approval
• Staff visa processing

Why the Final Cafeteria License Is Important :-

Without this license, operating your cafeteria is illegal. Banks, suppliers, and delivery platforms (like Talabat or Zomato) may also require a valid license to do business with you.

6. Cafeteria Total Startup Cost in Dubai :-

Understanding the total startup cost is essential when learning how to start cafeteria business in Dubai. Starting a cafeteria involves multiple expenses, including licenses, shop rent, equipment, and staff. Knowing these costs helps you plan your budget effectively.

License and Approval Fees :-

Before opening, you need several approvals and licenses:

Trade Name Registration: AED 600 – 1,000

Initial Approval: AED 1,000 – 1,500

Municipality Food Approval: AED 2,000 – 5,000

Final Cafeteria License: AED 8,000 – 15,000

Total license cost: ≈ AED 12,000 – 22,000

Shop Rent and Ejari :-

The cost of renting a shop depends on location and size:

Small cafeteria (residential or labor area): AED 20,000 – 60,000 per year

Medium or busy area (Dubai city, office zones): AED 60,000 – 120,000 per year

Ejari registration fee: AED 220 – 300

Choosing the right location is key to balancing cost and customer traffic.

Interiors and Furniture :-

A well-designed cafeteria attracts more customers. Interiors include tables, chairs, counters, décor, and lighting:

• Small cafeteria: AED 50,000 – 100,000

• Medium to large cafeteria: AED 100,000 – 200,000

Kitchen Equipment :-

Kitchen setup is another major expense. You need cooking equipment, coffee machines, refrigerators, storage units, and utensils:

• Small setup: AED 30,000 – 50,000

• Medium setup: AED 50,000 – 150,000

Staff and Salaries :-

Hiring staff is essential for smooth operations. Staff may include cooks, baristas, cashiers, and cleaners:

• Small cafeteria: AED 20,000 – 40,000 per month

• Staff visa processing may cost additional AED 3,000 – 5,000 per employee

Marketing and Initial Promotion :-

To attract customers initially, budget for marketing:

• Social media promotion, flyers, banners: AED 2,000 – 5,000

Total Estimated Startup Cost :-

Expense Category	Estimated Cost (AED)
License & Approvals	12,000 – 22,000
Shop Rent & Ejari	20,000 – 120,000
Interiors & Furniture	50,000 – 200,000
Kitchen Equipment	30,000 – 150,000
Staff & Salaries	20,000 – 40,000+
Marketing	2,000 – 5,000
Total	≈ AED 134,000 – 537,000+

Tip: A small cafeteria in a residential or labor area can start with ≈ AED 150,000 – 200,000. Larger cafeterias in premium locations may require AED 300,000 – 500,000+.

Conclusion

Starting a cafeteria in Dubai can be a smart and profitable business idea if you follow the right steps. From trade name registration and initial approval to shop rent, municipality food approval, and the final cafeteria license, each step plays an important role in building a legal and successful business.

Understanding the total startup cost and estimating monthly profit helps you plan your budget with confidence. While Dubai offers high demand and strong earning potential, other emirates like Sharjah and Ajman provide more affordable options for beginners. Choosing the right location, controlling costs, and maintaining food quality are key factors for long-term success.

If you are planning how to start cafeteria business in Dubai, proper preparation and knowledge can save both time and money. Start small, follow the legal process carefully, and focus on customer satisfaction. With the right strategy, your cafeteria can grow into a stable and rewarding business in the UAE.