Coffee has been one of the most preferred beverages of all time and has been an essential part of the daily life of people in Dubai. The food industry, restaurants, and cafes in Dubai have witnessed exponential growth in the past few years. This rapid development in the economy and growth in the food industry can make you think about how to start a coffee shop business in Dubai.
Cultural diversity and a population with outstanding purchasing power have made this expansion possible. Opening a business in Dubai where 85% of the population are tourists will be the breakthrough you have been waiting for. Opening a coffee shop in Dubai can be a bit challenging given the competition. The cost of opening a bakery in Dubai will always be a factor to consider if you wish to start a coffee shop business in Dubai.
How to Start a Coffee Shop Business in Dubai?
1. Registering and Registering Your Business
To set up a coffee shop in Dubai, registering and licensing your business is the first step. The Department of Economic Development will provide you with your coffee shop license in Dubai and the Food Control Department is responsible for the food license. Having all the necessary licenses will allow you to start a coffee shop business in Dubai with ease.
2. Location
Location plays an important role in your business. To set up a coffee shop in Dubai you need to have an attractive location. The Government of Dubai allows you to choose between two types of locations, the Free Zone and the Mainland.
If you wish to enjoy 100% ownership of your business, wish to occupy 100% of your profits, and have exemption from all your custom duties then go for a free zone license. On the other hand, if you want to work alongside the government and are planning to have a wide scope for business expansion then you must choose Mainland locations to set up a coffee shop in Dubai.
3. Architecture and Blueprint
Dubai pays sincere attention to the build quality and architecture of all its food-related businesses. Having a proper infrastructure in accordance with the guidelines established by the Food Control Department of Dubai is important. Proper mention of the food processing and storing spaces, ventilation system, washrooms and restrooms, kitchen, and waste disposal areas, in your blueprint is mandatory.
4. Advertisement and Marketing
The story of a successful business comes from the way it advertises its products. Advertising your products to your potential customers is beneficial for the sales of your product. Promoting your business online as well as offline can yield good results. Offering discounts and sales, celebrating festivals with decorative themes and advertising special events can attract clients’ attention. Coming Up with something unique can further promote the growth of your coffee and bakery business in Dubai.
What is the Cost of Opening a Coffee Shop in Dubai
The cost of shop in Dubai depends upon several factors. AED 18,00,000 to AED 46,00,000 is the range of expenditure that you should expect if you wish to set up a coffee shop in Dubai. Some of the costs that will become a part of your endeavors are mentioned below.
1. License Cost
- A general trading license in Dubai will cost you around AED 25,000 to AED 40,000.
- A food license in Dubai will cost you around AED 22,200.
- The cost for a Free zone license lies between AED 5,750 – AED 22,500.
- Mainland license price is from AED 16,500 to AED 26,500.
2. Notary MOA Fees
The Memorandum of Association (MoA) is the legal document that handles the economic relationship between its shareholders and companies. Registering under MOA will charge you about AED 1,250 to AED 3,000.
3. Ejari Fees
Ejari Online registration cost is AED 365. This is a mandatory rent that the landlord needs to pay to the government.
4. Cost of Architecture
The average cost of opening a bakery in Dubai ranges from AED 18,00,000 to AED 46,00,000. This price depends upon the size of your restaurant and your lease amount.
Documents Required to Open a Coffee Shop Business in Dubai
Following is a list of documents required while setting up a coffee shop in Dubai
- Food license
- Trade license
- Tenancy agreement form.
- Free zone/ mainland license
- Typed BR/1 form.
- Ejari Registration Certificate.
- Memorandum of Association (MOA).
- Passport-size photo.
- UAE ID Number
- Photocopy of the issued trade license.
- Confirmation report of P.O box.
- DED letter approving your restaurant name.
- Non-Objection Certificate (NOC) issued by the municipality of Dubai.
Benefits of Starting a Coffee Shop Business in Dubai
Many industrial leaders and officials surveying the Qahwa drinking tradition in Dubai, believe that there is still more potential that needs to be discovered in the coffee business in Dubai. ‘Qahwa’, the Arabic word for coffee, has developed into a more diverse and modern trend amongst the locals as well as the tourists of Dubai.
So, if you plan to start a coffee shop business in Dubai right now would be a perfect time. The cost of opening a bakery in Dubai is much less compared to other businesses in the market. You need a very small space while setting up your business which makes it easy to maintain. Moreover, the time consumed in constructing the infrastructure for your bakery will be much less as compared to other business industries.
Start a Coffee Shop Business in Dubai with the Help of Experts
The process to start a coffee shop business in Dubai is straightforward. If you are also thinking about how to open a small shop in Dubai, it involves piles of paperwork. So, we suggest you take the help of experienced business consultants at UAE Expansion.
They can help you to start planning to set up a coffee shop in Dubai and get a coffee shop license in Dubai in a matter of 3 to 4 days. The professional advisors at UAE Expansion can provide you with proper guidance and help you lay out a plan for your small coffee shop in Dubai. All you have to do is call us, let us know your requirements and we will take it up from there.
