The Middle East is attracting a plethora of tourists and businessmen alike. The main reason for the development of business is the introduction of business-friendly policies by the rulers. A large number of tourists are coming every year to this scintillating city offering a variety of tourist attractions. In addition, the city has a diverse population. People from different parts of the world come to make a living in Dubai. Considering all these facets, opening a coffee shop in Dubai will be a great idea.
Why a Coffee shop?
A coffee shop is a small business. For the people who want to invest in the food and beverages industry, this an economical idea. There has been a continuous rise in the number of coffee shops in Dubai. The competition will be high but the business can succeed by presenting a unique idea. This business has not been affected by VAT and other economic issues. Moreover, opening a restaurant in Dubai is much costlier than a coffee shop.
Advantages of Opening a Coffee Shop in Dubai
- Firstly, it is a small business. The requirements and documents for setting up are few.
- Secondly, a coffee shop takes less time to be approved.
- Thirdly, a coffee shop requires a small place. Therefore, fewer commodities are required.
- It is cost-effective.
- Space is occupied for small-time, making it available for the next customer. Therefore, there is less need for more equipment.
Steps for Opening a Coffee Shop in Dubai
- Market research: The entrepreneur can check the demand, other business models, and discuss the profitability with other businessmen.
- Business plan: A plan has to be prepared by checking the demand and by consulting with other shop owners.
- Suitable location: The location may be in a Free Zone or in the Mainland with a high population and less number of coffee shops. Commercial areas are the best.
- Present a unique idea to stand out: For instance in terms of new flavored coffee, packaging, ambience, and the like. The owner can also add some new products to the menu. In addition, some services like wifi and home delivery may also be added.
- The business has to decide on the best suppliers and equipment to maintain quality.
- The business has to design the menu card and the café suiting the theme of the shop and the culture of the society.
- Marketing plan: If the business is planning to serve a large customer base, then online and electronic media marketing would be some of the methods. But, if the business is targeting a small customer base then banner ads, pamphlets are some of the methods.
- A local partner has to be selected in case the shop is located in the mainland who acts as a sleeping partner.
- The owner has to sign a tenancy contract in case the shop is on rent.
- Get the license: The owner has to get a Food License from the Food Safety Department and also a Trade license from DED.
- The Food and Safety Department issues a NOC.
- The DED and the Dubai Municipality provide the license in a week.
- The businessman has to apply for a visa with the ministry of Labor and Immigration Department for the workers.
- The owner has to present a blueprint of the
- food processing area and the storage space
- sanitary area
- windows, and ventilators
- exit and entry
- area for washing
- For getting the Food License, the DED has to approve. Moreover, the owner has to get the approval of the layout of the premises and approval from the planning department (if the shop is outside a shopping center).
- For getting the Trade license, a license application has to be filed along with a Memorandum of Association and attested Company name. The owner also has to place an approval letter from the DED and a passport copy of management partners.
In conclusion, a businessman who wants to open a coffee shop in Dubai can go through the above processes and documentations. The process is less time consuming and effortless as compared to setting up a restaurant. But, the owner has to provide proper documents and plans to the authorities.