As meal delivery has grown in popularity, cloud kitchens have become a more direct way to provide food to customers while avoiding costly restaurant overheads. As a result, the UAE's online food market is growing. Sales reached $412 million in 2020 and are expected to reach $619 million by 2025.
Before beginning your cloud kitchen in Dubai, you should know the following. First, we explain everything, from the benefits to the costs of the application process.
Benefits of starting a Cloud Kitchen in Dubai
A cloud kitchen has advantages over a traditional dine-in establishment. These are their names:
- Low infrastructure costs:
Cloud kitchen Dubai has a low entry barrier so that you can offer various food menu options. To run a virtual kitchen, you don't have to rent or buy expensive premises in affluent neighborhoods. Instead, you could run your Dubai cloud kitchen from 250-300 Sq ft, drastically lowering costs. Using a shared cooking space could help you save money on startup costs.
- A low-risk, high-reward opportunity:
A cloud kitchen in Dubai offers a low-risk, high-reward opportunity. There is no need for a large operating workforce, and there are no high overhead costs compared to a dine-in restaurant. Furthermore, the foreclosure of your business is more accessible than that of a physical restaurant.
- Easily manageable:
Order administration is straightforward because the process is technologically focused, and the risk of errors is potentially low. Furthermore, you can handle all customer inquiries via phone or chat.
- A large audience:
More than 70% of UAE residents order meals through mobile apps. You can reach a wider audience using an online food aggregator like Talabat or Zomato.
Checklist of requirements for establishing a cloud kitchen in Dubai
Here is a comprehensive list for launching a cloud kitchen in UAE:
1. Location and property:
A cloud kitchen in Dubai does not require high-traffic areas. Kitchens can be placed in residential areas or vacant parking spaces.
Starting a Dubai cloud kitchen necessitates the acquisition of the necessary cloud kitchen licenses in Dubai and registration. A food and trade license is required to start a cloud kitchen business in the UAE.
Cloud kitchens require only a few people. From a single kitchen, your chef can create cuisine for multiple brands.
4. Kitchen equipment and packaging:
The kitchen equipment you use is determined by the food you serve. To get started in the cloud kitchen, you'll need a kitchen range, refrigerator, oven, and cutting tools. Packing is another critical aspect of running a food delivery service. You must invest in industry-standard containers and boxes to ensure proper food packing.
5. Generating online orders and marketing:
Because a cloud kitchen can only accept online orders, you must invest heavily in marketing. Online marketing is critical for increasing brand visibility when you need a physical presence.
Technological requirements to launch a cloud kitchen in Dubai, UAE
Because cloud kitchen order handling is heavily reliant on technology, the following are some of the technological requirements for setting up your kitchen:
- A centralized ordering system:
An integrated online ordering system that streamlines operations is required for a virtual restaurant. Manually entering order data into the point-of-sale system (POS) in your cloud kitchen's various online food ordering platforms is a huge pain. The centralized system that accepts and tracks orders from multiple platforms is an excellent investment.
- Integrated kitchen display system:
When working in a high-volume cloud kitchen, every minute counts, and an integrated kitchen display system is a must. A KDS enhances operations by detecting delays in order preparation and optimizing preparation time.
- Inventory management system:
A kitchen requires an inventory management system. It aids in stock management and the reduction of food waste. Intelligent inventory management systems detect daily stock usage and notify you when more stock is needed. It will also help you keep your food prices under control.
- Food delivery via an integrated delivery system:
You can quickly allocate orders based on location and delivery executive availability with an in-house food delivery system. You can also check an order's status and send automatic SMS updates to your customers.
How to Begin a Cloud Kitchen Business in Dubai
To begin operations, you must ensure that your company complies with all applicable emirate laws and regulations. Here are five simple steps to starting a business in Dubai:
Step 1: Select a name
It would help if you chose a company name and the types of operations your company will undertake.
Step 2: Choose a location
To make the most of your kitchen, consider factors such as when deciding on a location, consider accessibility to your market, suitability to the nature of your business, and transit accessibility.
Step 3: Submit documentation to the DED
At this stage, you must obtain all necessary government clearances from the Department of Economic Development. Company formation and licensing occur concurrently.
Step 4: Obtain the necessary licenses.
Once the authorities have approved the company activity, you can obtain the license required for cloud kitchen, Memorandum of Association, Certificate of Incorporation, trade license, share certificates, visas, tenancy agreement, labor cards, and other legal documents.
Step 5: Apply for your visa.
It is now time to set up your business in Dubai. You may also apply for staff visas with your visa application—economic advancement. Company formation and licensing occur concurrently.
What are the expenses for a cloud kitchen in Dubai?
The cost of establishing a cloud kitchen business in the UAE is AED 23,000. Many factors will influence the cost of developing and operating a cloud kitchen. The size and location of your premises are two of the most critical aspects of your business. You must also obtain food and commerce permits from the appropriate authorities.
Working with Business Setup Worldwide
Because nearly two-thirds of UAE residents buy meals through apps, Now is an excellent time to join the burgeoning cloud kitchen industry.
Business Setup Worldwide is the UAE's most experienced and trusted business setup company. We specialize in providing quick, dependable, hassle-free, and professional assistance in delivering solutions that best fit your needs when starting a business. Contact us for assistance with forming your free zone or mainland company in Dubai.
Is cloud kitchen profitable in UAE?
As a result, launching a cloud kitchen is a low-risk endeavor. It enables restaurant owners to experiment while lowering overhead costs and increasing profitability. Cloud kitchens are rapidly capturing the Food and Beverage industry in Dubai, and the food delivery business is expected to grow in the coming years.
How much does it cost to start a cloud kitchen in Dubai?
What are the expenses for a cloud kitchen in Dubai? The cost of establishing a cloud kitchen business in the UAE is AED 23,000.
How can I get a cloud kitchen license in Dubai?
You must obtain a trading and food license to legalize your cloud kitchen in the UAE. The DED or the relevant free zone authority will issue you a trade license, while the Food Safety Department in Dubai will handle the food license.
Do I need a license to sell food in UAE?
You must first obtain a license before you can begin operations. Submit your company information to the Abu Dhabi Agriculture and Food Safety Authority (ADAFSA) via their website.
How much is a food license in Dubai?
A cafeteria license in Dubai costs between AED 140,000 and AED 200,000. Your trade license is renewed once a year by the Dubai Department of Economic Development (DED).