How to start a Café in UAE

Introduction

How to start a  Café in UAE

UAE is a perfect place to grab a coffee and chill out in front of the shores. Coffee in UAE has moved out of malls and into the neighbourhoods as café shops. How to start a café in UAE is discussed below.

In the last few years, coffee culture has taken on an amazingly different dimension in the UAE, with Western-style cafes styling up in UAE. People here don’t just love to sip coffee, but they love the entire feel from ambience to coffee. While coffee still remains the central focus, many cafes now provide comfort and convenience. Free wireless services, couches, music, newspapers and even books in some cases. People are flocking to the coffee shops for everything from work meetings to socializing or getting some time to themselves.

Contents of the post             

• Introduction
• How to start Café in UAE- the guide to start Café in UAE
• Menu of the Café in UAE
• Capital required to start a Café in UAE
• Type of License required to start a café in UAE
• Reach Online Accounting System for café in UAE
• Features of Reach Online Accounting System for café in UAE
• Technology Used
• Conclusion

How to start a Café in UAE

Below is the guide to start a Café in UAE

Trade License

First-step to start a  cafe in UAE is securing trade licenses. Your Food License can be obtained through the Food & Safety Department, while your Trade License must be acquired through the Department of Economic Development & Department of Tourism and Commerce Marketing.

Obtaining   license is a critical part of the process. It should be done carefully and on time so that you can start cafe as quickly as possible. Inadequate or improper filing/renewal of your Food and Trade license can lead to vulnerability of legal fines and closure. For smooth operation of your business means obtaining the necessary licenses, then keeping the paperwork in proper standing with the correct authorities. Often the rules for opening a cafe in UAE are quite different to those in Europe and America, so it is worth seeking expert advice from someone who has worked in the region for a while.

2. Location

Location is everything when starting a business Even the best cafe can suffer, due to a poor or uninformed choice of business location.

UAE has created many different business zones, that specialize in different sectors e.g. Media City, Internet City, or Education City. There are also tourist zones, such as Jumeriah Beach Walk, or high-quality residential zones such as Arabian Ranches and the Palm. It is important to choose a location which will support your restaurant type and your customers’ budget. For instance, students tend to prefer lower cost cafeterias as they are not in full time work. Areas frequented by tourists staying in the 5* hotels, can accommodate more luxurious and exotic restaurants.

3. Business Plan

A professional business plan should cover 4 areas:

• Defined goal of staring the cafe.
• Capital invested gets profit in the first quarter
• Contingent plan for unforeseen mishaps.
• Keeping up the brand name and goodwill in the market.

Cafe business plan in UAE is a one of the key part in the process of formation; it will state in advance that what kind of effort you need for this type of license; as well as it will tell you that what will be your target market; what area you need to select for your cafeteria; how many staff you requires in it the beginning; and also what sort of item will offer in the shop. Also it will tell you about the local rules and regulations; as well as the certain inspection requirements you will need to satisfy. A cafe business plan in UAE will always be in written form. You would not be able to start your business without the proper plan.

4. Free Zone or On-Shore to start a café in UAE

Whilst a Free Zone may seem like a lower cost option in which to establish a business, the strict regulations around trading mean that the cafe must be physically located in that Free Zone, which of course is not likely to be a particularly prosperous option. The most effective way to set up a cafe in the UAE is an on-shore Limited Liability Company (LLC).

As with many countries in the GCC region, commercial law in the UAE states that a foreign investor cannot own more than 49% of an LLC, and must partner with one or more Emirati (individual or company), who will therefore own a minimum of 51% of the shares.

Menu of the Café in UAE 

Café does not limit itself to coffees only. A wide range of snacks like sandwiches, milkshakes soft drinks, cakes, small hot dog; biscuits, also pastries and brownies should also be served to attract more customers. As eatables are also served; then you need additional licenses, so first check the rules and regulations before starting to sell anything. The only thing you need to do is to advertise your cafeteria; as well as your menu which you will offer to your client.

Capital required to start a Café in UAE

The larger your plan; the more you will need the capitals. It also depends upon the number of staff you will have; the out let of the shop; as well as on the interior of the café and choice of menu.

Type of License required to start a café in UAE

• Name : Cafeteria
• Activity Code : 552003
• Activity Group : Restaurants and coffee shops
• License Type : Professional
• Activity Description: the cafeteria license Dubai is allowed to sell snacks, juices; as well as beverages to the public. Following two special approval are requires for this type of a license

Apart from the above mentioned it is very important  a  well organized and well implemented accounting system which can be extremely simple yet functional .An excellent and  simple user friendly  system that addresses the core activities of the food business  incorporating purchases accounts, receiving systems, production, waste, man-hours, fixed costs, variable costs and prime costs of the food outlet.

Reach Online Accounting Software for café in UAE

Thus Reach Accountant Online Accounting Software is well designed to match all the needs for successful running of the business. The software can be used in different industries  ,traders ,manufacturers, retailers,  workshop ,business projects ,Coffee shops etc. It is an accounting software that can automatically manage your book of accounts, taxes, inventory, sales, purchases and more online quickly and securely.                                                                                             

Features of Reach Online Accounting Software for café in UAE

• Accounting Management
• Tax Management:
• Income Management
• Expense Management
• Invoicing
• Print Tax Invoice In Arabic
• Auditor View:
• Check Post for VAT returns:
• Automatic Update on Tax legal Sections
• Filing Of VAT Returns
• Auditor’s Report
• Mobile Application
• Bank Synchronization
• Security
• Run Business from anywhere
• Free and Automatic Upgrades
• No investment in expensive hardware
• Automatic Data Backup
• User Interface & Complexity
• Scalability
• CRM
• Inventory Management
• Supply Chain Management
• Dealer Management
• POS

 Synopsis of the Features of Reach Online Accounting Software for café in UAE

• Inventory Support; Warehouse, Product and Product Price Management.
• Branch, Department, Employee and User Role management
• Provides all the normal accounting transactions including Contra, Payment, Receipt, Journal, and Service Vouchers, PDC management, Bank Reconciliation, Stock journal etc.
• Sales and Purchase Management
• Financial Statements including Profit and Loss, Trial Balance, Balance Sheet, Cash flow, Fund flow and Chart of accounts.
• Budgeting and budget Variance
• Service Management
• Detailed Reporting including
• Account Group and Ledger wise report
• Day Book, Cash Book
• Stock report
• Sales and Purchase report
• Ageing Report
• C/O Report
• Product Statistics Report
• VAT Reports etc.
• Calculate VAT automatically.
• VAT support in Sales, Purchase, Sales and Purchase returns, Journal entries.
• Generate Federal Tax Authority compatible tax reports.
• VAT Paid (charged by suppliers) and Vat Collection (Charged to customers) Analysis.
• Transaction wise details of VAT paid and VAT collected.
• Attach every Vendors/Customers VAT number and other details.
• VAT supported for Goods (stocked) and Service (non-stocked) items.
• Online application accounting.
• VAT Account Reconciliation, VAT Collection & VAT Paid analysis report.
• Report export to excel and other standard formats.
• VAT returns statement compatible with Federal Tax Authority standards.

Technology Used

Reach has implemented the latest technology Cloud Computing to handle  day to day business transactions just  a click away from your browser from any part of the world.

Cloud Computing is a concept through which organizations can manage their data centres, processes and applications online via internet on the scheme of pay for use basis.

Conclusion

The Department of Economic Development (DED), looked into the most popular business outlets of the country and they revealed that coffee shops were rated the highest in a qualitative analysis of consumer experience across UAE. The demand for high-quality coffee has gone up over the last two years a report by Euromonitor noted. The market research company also highlighted an increase in the licences issued to UAE cafes. There is a definite demand for coffee and the high cost of specialty coffee hasn’t stopped people from enjoying their cuppa.