Opening a cafeteria in Abu Dhabi can be a smart business move, but many people misunderstand the real cost. A cafeteria license is not one single fee. It includes several approvals, permits, and government charges that must be paid before you can start serving customers.
This guide explains the cafeteria license cost in Abu Dhabi in a clear and simple way. You will learn where your money goes, which fees are mandatory, and what increases the total cost. It helps you plan your budget and avoid expensive mistakes.
What Is a Cafeteria License in Abu Dhabi, UAE?
A cafeteria license in Abu Dhabi is a legal permit that allows you to sell food and beverages to the public. It is required before opening or operating any cafeteria, coffee shop, or small food outlet. Without this license, the business is considered illegal and can face fines or closure.
This license is issued after approvals from multiple authorities. The main approval comes from the Department of Economic Development (ADDED). Food safety clearance is required to make sure hygiene standards are met. Civil Defense approval confirms fire and safety compliance.
It is important to understand that a cafeteria license is different from a restaurant license. A cafeteria license usually allows limited food preparation and a simpler menu. Choosing the correct license helps control costs and avoids problems during inspections or renewals.
Scope of Cafeteria Business in Abu Dhabi
The food and beverage (F&B) sector in Abu Dhabi is growing rapidly, making cafeterias a strong business opportunity. By late 2025, active companies in the F&B industry reached nearly 24,600, showing strong investor interest and expansion of food services across the city. Cafés and cafeterias alone account for about 23% of all F&B activities, more than restaurants or beverage shops, showing rising demand for casual eating and coffee spots.
This growth is backed by a steady rise in new business registrations and a compound annual growth rate of nearly 24% from 2019–2024 in the overall F&B sector, a sign of long-term market strength. As more residents and tourists seek social, work, and leisure spaces, cafeterias are becoming both a cultural hub and a profitable business model in Abu Dhabi.
How to Save on Cafeteria Startup Costs in Abu Dhabi
Choose the Right Location
Rent and municipality fees are a major part of your budget. Picking a small but high-traffic area, or avoiding prime commercial zones initially, can lower rent, utility deposits, and some approvals.
Start Small and Expand Gradually
Focus on a limited menu and basic seating at first. A smaller setup means lower kitchen fit-out and equipment costs. Once your business grows, you can expand your offerings and seating area.
Plan Your Kitchen Layout Carefully
Submit an accurate kitchen layout to ADAFSA from the start. This avoids redesigns and re-inspection fees, which can cost thousands of dirhams. A well-planned layout speeds up approvals too.
Bundle Professional Services
Hiring a consultant or PRO service to handle all approvals and paperwork in one go may seem like an extra cost, but it saves money and time by preventing delays, mistakes, and multiple re-submissions.
Buy Second-Hand Equipment (Smartly)
Some essential equipment, like tables, chairs, or storage racks, can be bought in good condition second-hand. Just make sure all kitchen equipment meets food safety standards to avoid inspection issues.
Keep a Contingency Budget
Set aside 10–15% extra for unexpected costs like re-inspections, minor repairs, or additional approvals. This prevents small surprises from blowing up your budget.
Combining these strategies can reduce your initial investment by 15–25% without affecting quality or legal compliance.
Get Your Cafeteria License in Abu Dhabi with Expert Support
Additional Costs to Consider When Opening a Cafeteria in Abu Dhabi
Beyond the license fees, you must plan for operational and compliance costs that are necessary to pass inspections and start daily operations. These costs vary by size and location but cannot be avoided.
Estimated Total Business Setup Cost
For a small to mid-sized cafeteria, additional startup costs typically range between AED 97,000 and AED 246,000, excluding licensing fees.
When combined with licensing costs, the total estimated investment to open a cafeteria in Abu Dhabi usually falls between AED 110,000 and AED 260,000, depending on size, location, and compliance readiness.
Cafeteria License Cost in Abu Dhabi
The cost of a cafeteria permit in Abu Dhabi consists of fixed government fees and mandatory approvals, with the final amount determined by your shop size, location, and safety compliance.
| Cost Component | Estimated Cost (AED) | What It Covers |
| Trade Name Reservation | 200 – 700 | Registering your business name |
| Initial Approval | 100 – 500 | Activity and application approval |
| Trade License Issuance | 3,000 – 7,000 | Core cafeteria license |
| Food Safety Approval | 500 – 1,500 | Hygiene and kitchen compliance |
| Civil Defense Approval | 1,000 – 3,000 | Fire and safety inspection |
| Municipality Permits | 300 – 1,000 | Signage and local approvals |
| Tenancy Registration | 100 – 300 | Lease registration |
| Typing / PRO Services | 500 – 1,500 | Documentation and submissions |
Estimated Total License Cost
AED 9,000 to 18,000 for a small to mid-sized cafeteria (licensing only).
Ongoing Operating Costs for a Cafeteria in the UAE
Once your cafeteria is operational, you will have recurring monthly expenses that must be managed carefully to maintain profitability. Below is a breakdown of the typical operating costs for a small cafeteria.
| Cost Category | Description | Estimated Cost |
|---|---|---|
| Rent and Utilities | Monthly shop rent, electricity, water, gas, and waste collection charges | AED 8,000 – 25,000 per month |
| Staff Salaries | Wages for baristas, kitchen helpers, and cleaners based on team size and working hours | AED 6,000 – 15,000 per month |
| Supplies and Inventory | Raw food materials, beverages, packaging items, and cleaning supplies | AED 5,000 – 12,000 per month |
| Renewals and Maintenance | License renewals, food safety permits, equipment servicing, and minor repairs | AED 3,000 – 6,000 per year |
Small cafeterias typically incur monthly operating costs ranging from AED 20,000 to AED 45,000, and managing these expenses effectively is essential for maintaining strong profit margins and long-term business sustainability.
Low-Budget vs Standard vs Premium Cafeteria Costs
Choosing the right setup can make a big difference in your total investment. Here’s a clear comparison of estimated costs for different cafeteria sizes and styles in Abu Dhabi, helping you plan your budget realistically.
| Cafeteria Type | License & Approvals (AED) | Setup & Equipment (AED) | Staff & Utilities (AED) | Total Estimated Cost (AED) |
| Low-Budget | 9,000 – 12,000 | 50,000 – 70,000 | 15,000 – 20,000 | ~74,000 – 102,000 |
| Standard | 12,000 – 18,000 | 80,000 – 120,000 | 20,000 – 30,000 | ~112,000 – 168,000 |
| Premium | 15,000 – 20,000 | 150,000 – 200,000 | 30,000 – 45,000 | ~195,000 – 265,000 |
Get Your Business License Today
Opening a cafeteria in Abu Dhabi can be complex, but you don’t have to do it alone. RIZ AND MONA CONSULTANCY can guide you through license approvals, cost planning, and compliance, ensuring your business starts smoothly and stays within budget.
Contact us today to get a personalized cost breakdown, step-by-step setup plan, and professional support for your cafeteria venture.
FAQS (Frequently Asked Questions)
How can I start a business in Abu Dhabi?
To start a business in Abu Dhabi, you need a clear business plan, choose a legal structure, and submit a business license application to the DED. Entrepreneurs must also meet requirements from relevant authorities, including food safety for F&B ventures.
What is the cost of opening a cafeteria in Abu Dhabi?
The cost of opening a cafeteria depends on the size, location, and fit-out. Core fees include the cafeteria permit in Abu Dhabi, approvals from Abu Dhabi Agriculture and Food Safety, Civil Defense, and setup costs like equipment and staff training.
Do I need a visa to open a cafeteria in Abu Dhabi?
Yes, if you are a foreign entrepreneur, you must have a valid residency visa to legally operate your cafeteria. Some investors also sponsor staff visas for employees handling food preparation or service.
Can I open a restaurant in Abu Dhabi instead of a cafeteria?
Yes, but opening a restaurant involves higher costs, stricter health and safety standards, and additional inspections from the food safety department. Cafeterias are simpler to set up, but both require a valid commercial license.
What approvals are required for a food business?
A food business must obtain approvals from Abu Dhabi Agriculture and Food Safety (ADAFSA) or Dhabi Agriculture and Food Safety Authority. This ensures food safety training, food control, and compliance with hygiene regulations before opening.
Can I open a small coffee shop instead of a cafeteria?
Yes, a coffee shop can be licensed under a cafeteria business license. The setup process is similar, including approvals from Abu Dhabi Department of Economic Development, food safety authorities, and inspections for health and safety compliance.
Are there additional costs besides the license?
Yes, additional costs include kitchen equipment, staff training, utility deposits, fit-out, and marketing. Budgeting for these is essential to legally operate your cafeteria and avoid delays during inspections or reopening after food safety checks.
Can I set up my cafeteria in a UAE free zone?
Some free zones allow food businesses, but most cafeterias or restaurants in Abu Dhabi require mainland approvals. Free zones provide company incorporation and professional license options, but local trade regulations may limit food service operations.
How long does the setup process take in Dubai and other UAE Emirates?
The cafeteria setup process in Abu Dhabi typically starts with a license application to the DED, followed by food safety department approval. On average, the process takes 6–10 weeks, depending on inspections, document approval, and your readiness for health and safety compliance.
What documents are required for obtaining a cafeteria license in Dubai and Abu Dhabi?
You must submit a license application, tenancy contract, owner IDs, layout plans, food safety training certificates, and approvals from Abu Dhabi Agriculture and Food Safety. Proper documentation ensures a smooth setup process and avoids unnecessary additional costs.
