Coffee Shop setup in Ajman might not have the sparkle of Dubai and Abu Dhabi, however it has its own charm.
The UAE’s second most commercialized product is coffee, therefore it makes for one of the most attractive commodities to invest in. In the UAE people serve coffee traditionally in a long spouted jug or dallah. The locals like both black coffee as well as the brewed one with cardamom and saffron. It is often accompanied with dates, dried fruits and nuts.
Coffee Shop Setup in Ajman have a vibrant culture. In addition to the traditional Arabic coffee, several coffee shops also serve other international popular coffee blends.
There are numerous coffee shops, both local and international brands. For instance the local coffee shops are Pappa Roti, La Villa Café, Shakespeare and Company etc. and there are two international coffee shops, the Starbucks and the Tim Hortons with several outlets across the city.
In Ajman the cost of setting the Business is much more affordable than other Emirates. Its general trading license cost is quite low as well as the fee for general maintenance license. And also it is much affordable to rent an office space in Ajman compared to downtown or any other popular spots.
Coffee Shop Setup in Ajman
If you are looking to start a coffee shop here, first you need to decide the style of the coffee shop. The investment would vary based on your target customers and the kind of products you plan to sell.
Next find a suitable location. A wisely chosen location is the biggest factor behind the success of any business. To start with, the location should be such that one can easily attract people.
There are three areas where you can open a café, the mainland, the free zone and the offshore.
In the Mainland, the trade license allows 100% foreign ownership, and making a UAE national as agent.
Some areas inside free zone also allows the investor to setup the company with 100% ownership. There is more privacy and very less demand for financial disclosure. Also, due to cheaper rent, lower taxes and ready infrastructure, the investor will need very less capital to begin with.
As an offshore company the investor would be able get the license to invest in other cafes or businesses. But the offshore company cannot run the business of their own in UAE.
The Negotiation and execute an appropriate lease
The major part of the investment goes into the rent, licensing and visa expenses.
You can rent a suitable shop for the café and sign the tenancy contract with the landlord. In Ajman the cost of land or rental space is very less. Most probably you will get a discounted lease rent. In Ajman, 5% of the annual rent has to be paid to the municipality.
Ajman Trade License or Business license cost is also low, be it the Mainland, the Free Zone or the Offshore.
The Outline of a Marketing Plan
Advertising your brand is important to increase the brand visibility that helps in the revenue growth. It is essential to plan to promote the shop in nearby areas, to spread the word around.
Having a clear marketing strategy before starting the business helps a lot. You must ensure that the people in the area are aware of a the new coffee joint being started.
Prepare the premises to the trade
- To open a café you need to apply for:
- The Trade License
- The Food License (Food and Safety Department)
- The NOC certificate from the Municipality.
- First you should get a local sponsor who will sign an agreement in case the owner is not a UAE national. Foreign investors also have to complete the immigration approval process.
- Next, you have to submit all the documents to the Ajman’s Department of Economic Development (DED). The DED will provide the initial approval as well as approval for trade name registration.
- Next, you have to submit an application to the Food and Safety Department for the Food License and a NOC certificate from Ajman Municipality
- Also, you will have to register the tenancy contract with the Ajman Municipality and the Planning Department.
- Once you get the license to start the café, then you have to register it with the Ministry of Labor and would have to submit the application to the Immigration Department to apply visas for the workers who are needed to run the café.
The Covid- 19 -Corona Times
Ajman have announced the opening of the eateries and have relaxed restriction during the Pandemic.
A statement issued by the Ajman Municipality said that the restaurant and the coffee shops are allowed to receive customers. But they need to follow the guidelines.
The coffee shops can only allow customers up to 30% of the total capacity and have to ensure social distancing between the tables.
The Municipality added that the restaurants can operate until 9 PM. While eateries with the license for home delivery can operate until 3 AM without allowing the customers at the restaurant.