Tea Shop License Cost in Dubai: Understanding Regulatory Expenses

From finding premises to buying equipment to hiring staff and sourcing your ingredients, you'll have plenty to keep you busy. During all this, you'll still need to find time to legitimise your business with the right cafeteria licenses.

Don't worry, though! We'll take you through the process of getting your tea shop license that ensures you can operate legally. This blog contains everything you need to know about getting your license, including:

• What is a cafe or tea shop license?
• What kinds of tea shop licenses are there?
• How much does a cafeteria license cost in Dubai?
• How do you purchase a cafeteria license in Dubai?
• What other licenses might you need for a cafe in Dubai?

Ready to get started? Then let's go!

What is a cafe or tea shop license?

A cafeteria license is a kind of food license specific to the cafeteria and tea shop industry. All businesses that are responsible for food handling require one of these licenses to confirm that they have the knowledge, skills, and equipment required to serve food and beverages safely when they trade.

During the application, the Department of Economic Development (DED - the United Arab Emirates department that issues the licenses) will go through your production process, inspecting your site, storage, preparation methods, and equipment so they can confirm your business is up to the required standards. Your cafeteria license therefore confirms that you meet the basic standards of the state, and they have confirmed you trade in line with health regulations.

What will the DED inspect for my license?

The inspection process for a cafeteria license is vast, and you have to thoroughly examine your business methods to ensure that your business plan is safe enough that a food license will be approved.

To prepare for your license application, you should look at:

• The floor plan of your business -  Where are your entrances, exits, and fire escapes? Are you allowing enough space for staff and customers to ensure the safe movement of people and hot beverages around the building? Are your appliances safely positioned for use? Are vents and windows present and uncovered?
• Hygiene stations - Do you possess all the materials needed to keep your business clean? Are hand-washing materials present near your food and drink stations? Does your business have suitable customer and staff bathroom facilities?
• Food and drink storage - Have you established how you will store all of your ingredients safely? Are they a suitable distance from the ground? Have you established where and how you will contain any open food and drink packages?

The above is not an exhaustive list but shows you some examples of what the food and safety department will look at before approving a cafeteria business in Dubai.

What documentation do I need to open a cafeteria in Dubai?

When getting your license from the Department of Economic Development, you'll need a few key documents and certifications to get approval before you can start trading:

• A completed cafeteria license application
• Passports for each partner in the business
• Official evidence of the company name and the registration letter
• Certificate issued by Dubai’s Municipal Food and Safety Authority’s Planning Department

With this documentation, you'll have everything you need to get your cafeteria license in Dubai!

What kinds of tea shop license are there?

Dubai has three main kinds of trade license relevant to a cafe or a restaurant. Cafes can vary greatly in how they operate, from kiosk setups to food vans with seating areas and more. So take a look at each kind before deciding which one is relevant to your business:

• Commercial permits - A commercial permit is required for business owners planning to process sales to the public on a professional scale. If you have limited involvement in the handling and production of your wares and your cafe has more of a retail setup, this may be relevant to you.
• Professional certification - The cafeteria license in Dubai falls under the bracket of professional certification, which is typically needed for craft professionals and labour/service-based businesses. This is the license required for a traditional cafeteria in Dubai.
• Industrial permit - If you're involved in producing or manufacturing your food or beverages (beyond mixing and preparing ingredients), you may need to obtain an industrial permit alongside or instead of a professional certification.

How much does a cafeteria license cost?

The cost of a cafeteria in the United Arab Emirates when opening is difficult to determine, and varies depending on where you are and the details of the cafeteria, such as renting or owning the premises etc.

The cost of your cafeteria license can be determined by going to the DED website directly and making contact with them (it's a good idea to reach out and have a contact at the department as you set up your cafeteria in case you need advice or support from a reputable source!)

You might see some excessive license cost estimations from third-party sources, so it's best to go directly to the DED for an accurate quote. The DED website lists some of the expenses involved in registering your business and states license registration will cost around AED 600 (but you can expect some variation around this figure depending on the specific license you require).

How do you purchase a cafeteria license in Dubai?

If you're looking to do business in Dubai, the Dubai Department of Economic Development is the state-sanctioned avenue you can follow, and their website provides guidance for prospective business owners that will help you apply for and purchase the cafeteria license you need to trade.

Simply follow the steps they outline, beginning with the request for initial approval. You can do this as you begin setting up your business plan, as you'll need to obtain approvals as you go through the different stages of opening your business.

It's always good to have outlines, forecasts, and plans in place from the outset, and when dealing with licensing, you'll want to have these with you to demonstrate you're entering into a serious, reputable enterprise.

When you put together your business plan, note which licenses you'll need to apply for and when you plan to apply for them. That way, you'll be prepared with the right documents at each stage and have the right licenses by the time you want to start trading!

What other licenses might you need for your cafeteria?

For many business owners, whether they're looking to run a coffee shop or a clothing store, struggle to know which licenses they need and when to apply. So what documentation do you need to make sure the legal legwork doesn't give you a limp when you're opening your cafe?

Trade name certification

It is the cafe license that most people will look for once you start doing business, showing you're certified to sell your teas and coffees, but in the first stages, you'll need to reserve your trade name that you'll use on all your other documents to distinguish your business from any other and help you market your business.

Request initial approval

If you need to obtain premises and begin making contracts with suppliers and other parties, but you're not yet ready to move forward with other licenses or preparations for your business, you'll need initial approval on your business.

Once you have both of these licenses, you'll be ready to move forward with your trade license application. However, depending on the kind of cafe you plan to run, you may also need:

Music performance license

If you plan to entertain your guests with either live performances or recordings of music (through radio or your Spotify playlist), you'll need the necessary license that makes that music legal.

First aid certification

Unless you or a member of staff you hire has already taken a first aid course, you might want to consider getting a first aider certificate which means you have someone on site prepared to step-in in the event of an emergency.

Now you've got your cafeteria license, you'll need a POS system!

To open a cafeteria in Dubai, you need more than a license to succeed. You need all the tools to stay ahead in trade, including a top of the range point of sale (POS) system. Epos Now POS solutions offer cafes just like yours the very latest software and hardware to make running a business not only profitable, but easy!

• Create a quick and easy checkout with specialised cafe sales software that keeps queues short and customers happy
• Offer greater comfort and convenience with multichannel sales, including delivery and table-based ordering
• Stay on top of staff and inventory with straightforward business management tools, with security-driven cloud-based access for when you're not on-site
• Adapt your way to the perfect cafe POS system using our extensive AppStore containing a wide range of tools for easy accounting, marketing, loyalty, and more

Like this blog? Take a look at our other blogs including the cost of opening a cafe in Dubai.