The most common and most likely answer to this crossword clue is the 7 letter word AUTOMAT
I've seen this crossword clue in The Times
A
U
T
O
M
A
T
Buddy explains!

The straight part
We know that "Establishment that dispenses" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case establishment that dispenses = automat.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.
What does AUTOMAT mean?
AUTOMAT noun- A vending machine for food.
- A cafeteria consisting of vending machines.