Dubai’s food and beverage (F&B) industry is growing fast, with experts predicting it will reach around USD 37 billion by the end of 2025. For Indian entrepreneurs and investors, this opens up a world of opportunities, especially in the café and small eatery segment.
In recent years, there’s been a rising demand for unique and cozy cafeterias in Dubai. People aren’t just looking for a quick coffee anymore, they want a place where they can relax, work, catch up with friends, or enjoy something new. With over 13,000 cafés and restaurants already in the city and the café market growing every year, it’s clear that this trend is here to stay.
What makes Dubai even more attractive is its diverse population, constant flow of tourists, and business-friendly rules. You can now have 100% ownership of your business in many cases, and the local government is very supportive of F&B ventures.
So, here's how you can start your own small cafeteria in Dubai, UAE.
If you want a storefront in a busy area and serve local customers directly, Mainland is the better option. If you want to start small and focus on deliveries or cloud kitchens, Free Zones are more cost-effective.
What are the Benefits of Starting a Cafeteria in Dubai?
Thinking of cafeteria business setup in UAE. Here are some key benefits that make it a smart and rewarding business move.1. Booming F&B Industry
The UAE's F&B sector is experiencing significant growth, with projections of reaching $43.98 billion by 2029 (CAGR of 17.09%). Dubai itself has over 13,000 restaurants, and the market continues to expand.2. Affordable Licensing and Business Setup Options
Compared to full-fledged restaurants, cafeterias generally require less capital investment, smaller operating spaces, and fewer staff, leading to lower rents, utilities, and payroll expenses, making it easier to break even. There are also cost-effective licensing options in free zones.3. Flexible Menu Options
Cafeteria menus, typically including snacks, quick meals, and drinks, are easily customizable to cater to customer preferences, helping reduce food waste and maximize profits.4. 100% Foreign Ownership
Thanks to recent reforms, you no longer need a local sponsor to start your business. You can now own 100% of your cafeteria, giving you complete control over operations and profits.5. Innovation
Dubai's focus on innovation and technology allows for the adoption of new dining concepts and technologies to enhance the customer experience. The rise of cloud kitchens also presents a cost-efficient avenue for F&B businesses.6. Tax Benefits
While a 9% corporate tax on profits above AED 375,000 (approx. INR 84 Lakhs) was introduced in June 2023, many exemptions exist, and importantly, there is no personal income tax in Dubai. This allows entrepreneurs to retain a significant portion of their profits, which can be reinvested into the business.How to Choose the Right Location to Open a Cafeteria Business in Dubai?
Choosing the right location can make or break your cafeteria business. It affects your customer flow, visibility, and overall profitability. Here’s what you need to keep in mind:Free Zone vs. Mainland: Which is Better?
| Criteria | Mainland | Free Zone |
| Customer Access | Open to local and global customers | Limited to Free Zone areas (unless using delivery platforms) |
| Business Ownership | 100% foreign ownership for many activities | 100% foreign ownership |
| Location Flexibility | Anywhere in Dubai | Within the specific Free Zone only |
| Cost | Higher setup/rent in prime areas | Lower costs, but limited market reach |
| Ideal For | Cafés targeting walk-ins or busy markets | Delivery-only cafés or niche brands |
Popular Areas in Dubai for Opening Small Cafeterias
Dubai has several vibrant areas where small cafeterias thrive, including:- Al Karama & Bur Dubai: Affordable and densely populated with Indian and Asian communities.
- Business Bay & Downtown Dubai: Ideal for a more modern, professional crowd with higher spending power.
- Jumeirah Lake Towers (JLT): A mixed residential and business hub with great walk-in potential.
- Al Quoz & Al Barsha: Creative and urban spaces, popular with younger audiences and freelancers.
- Dubai Marina & JBR: Tourist-friendly, great for premium or specialty cafés with strong footfall.
What are the License & Approvals Required to Open a Cafeteria in Dubai, UAE?
To legally operate a cafeteria in Dubai, you’ll need to obtain several licenses and approvals from government authorities. Here’s a breakdown of what you’ll need:1. Trade License (from DET/DED)
This is the fundamental license that allows you to operate your business. Issued by the Department of Economic Development (DED) (for Mainland businesses) or the relevant Free Zone authority. For a cafeteria, the business activity typically falls under "Cafeteria" or "Restaurant and Coffee Shops" categories.2. Location and Ejari (Tenancy Contract)
A valid Ejari-registered commercial space is mandatory. Your premises should meet Dubai Municipality’s health and safety requirements for F&B outlets.3. Food and Safety Approval
These are crucial for any food establishment and ensure compliance with stringent hygiene and safety standards. This must be obtained from Dubai Municipality, Food Control Department. You’ll need to submit:- Kitchen layout and design plans
- Details on food preparation, storage, and safety measures
- Approval for equipment and ventilation systems
4. Civil Defense Approval
Dubai Civil Defense inspects the premises to ensure fire safety standards are met. Installation of proper fire alarms, extinguishers, and emergency exits is required.5. Pest Control Contract
A valid pest control contract from a certified service provider is required to meet hygiene standards.6. Signage Permit
If you’re placing a signboard outside your cafeteria, you’ll need a signage approval from DED or the Free Zone authority. Tip: It's easier and faster to get all these approvals with the help of a local business setup consultant like Shuraa India, who can handle the process on your behalf.What are the Documents Required to Open a Cafeteria in Dubai?
To start a cafeteria in Dubai, you’ll need to submit several documents during the licensing and approval process. Here’s a list of the key documents required:- Passport copies of all shareholders/owners
- Visa copy (if you're already a UAE resident)
- Emirates ID copy (if applicable)
- Passport-size photos of the owner(s)
- Trade name reservation certificate
- Tenancy contract (Ejari) for the cafeteria space
- Layout plan of the kitchen and dining area
- Civil Défense approval for fire safety
- Dubai Municipality approval for health & hygiene standards
- Food Safety Certificate from Dubai Municipality
How to Start a Small Cafeteria in Dubai?
To start a cafeteria in Dubai, UAE follow these simple steps:Step 1: Finalize Your Business Plan
Before obtaining cafeteria licenses, create a strong business plan that includes:- Cafeteria concept (e.g., Indian street food, healthy café, vegan bites, specialty coffee)
- Target customer profile (expats, office-goers, families, students)
- Menu ideas and pricing strategy
- Estimated startup costs and profit margins
- Hiring needs, suppliers, and marketing approach
Step 2: Choose a Legal Structure
For a small cafeteria, a Limited Liability Company (LLC) is common. As of recent reforms, 100% foreign ownership is now possible for many mainland activities, including F&B, which is a significant advantage for Indian investors.Step 3: Trade Name Reservation
Select a unique and culturally appropriate name for your cafeteria. Reserve it with the Department of Economic Develpment (DED). Ensure it complies with UAE naming conventions (no offensive words, no religious/political references, etc.).Step 4: Secure a Commercial Space
Find the right location that matches your budget and target audience:- It must meet Dubai Municipality standards for food outlets (minimum space, ventilation, drainage, etc.)
- Sign a tenancy contract, and register it with Ejari (Dubai’s tenancy contract registration system)
- Ensure the layout is suitable for kitchen installation, hygiene zones, and dining space
Step 5: Obtain Food Safety and Municipality Approvals
- Food Concept Approval: Submit details of your menu and food concept to the Food Safety Department of Dubai Municipality.
- Layout Plan Approval: Submit detailed architectural drawings of your cafeteria showing all areas (kitchen, storage, washing, seating, restrooms, ventilation, grease traps). Ensure it complies with DM's Food Code and hygiene standards. This is a critical step, often requiring revisions.
- Pre-Opening Inspection: Once your fit-out is near completion, DM inspectors will visit to ensure everything aligns with the approved layout and meets strict hygiene, sanitation, and safety standards.
- Foodwatch Platform: Register your business on the Dubai Municipality Foodwatch Portal for digital inspections and permit tracking.
- Design Approval: DCD reviews these drawings to ensure compliance with fire safety codes (fire alarm systems, emergency exits, kitchen hood suppression, etc.).
Step 6: Apply for Trade License
Once your location is finalized and approvals are in place, submit your documents to DED or Free Zone to obtain a trade license.Step 7: Hire Staff & Apply for Visas
You can now begin hiring your team:- Cooks, baristas, waiters, cleaners, cashiers
- Apply for their employment visas and labour contracts through the Ministry of Human Resources & Emiratisation (MOHRE)
- Schedule regular health checks for your team, as required for food handlers