The United Arab Emirates (UAE) has long been home to a substantial and prosperous food sector. As a result of its flexibility to new ideas and heavy use of food delivery apps, the country has quickly become a top destination for restaurateurs, chefs, and well-known businesses in the online food and beverage industry.
The establishment of a cloud kitchen in Dubai has the potential to be a highly profitable commercial endeavor. Many restaurants in the UAE are switching to a cloud kitchen or online delivery model because of the costly rents, changing client preferences, and slim profit margins of brick-and-mortar establishments.
What is a Cloud Kitchen?
The term “cloud kitchen” refers to a commercial kitchen that delivers ready-to-eat meals. The cloud kitchen does not provide table service like a regular eatery. Customers can place orders via the internet, mobile application, or telephone.
As a business model, a delivery-only eatery has little risk, cheap investment, and big profits. The costs of opening a cloud kitchen are much lower than those of a conventional dining restaurant.
The Department of Economic Development and Tourism in Dubai is the place to go for the necessary commercial license to open a cloud kitchen. Also, you’ll have to register yourself with Dubai Municipality and ensure that your business adheres to its rules and regulations. Your business plan submitted to the Dubai government as part of the incorporation process must detail your intended kitchen layout, staffing, cleanliness protocols, menu items, and delivery procedures.
Cloud Kitchen Business in Dubai – Why Start One?
The cloud kitchen structure provides entrepreneurs with many opportunities while keeping operational expenses considerably low in Dubai. When compared to the conventional restaurant business model, cloud kitchens have many advantages, including:
· Less overhead costs
· Less space is needed
· Fewer workers are needed
· Improved cash flow
· Opportunities for business growth
· Large customer network
· Location isn’t a critical factor if delivery services can meet the demand
One of the most significant benefits of cloud kitchens is that they can be set up in much more compact locations. Because of this, you will be able to reduce the amount you spend on rent, which will increase your profitability in the long term.
Another advantage of cloud kitchens is that they enable startups to become profitable more quickly than traditional business models, which have larger initial investment requirements. There is no requirement for waiters or other front-of-house staff to greet clients. Deliveries are made directly to the customers’ doorsteps once the meal has been prepared in the designated kitchen.
Dubai Cloud Kitchen Business Start-up Guide
Cloud kitchen is one of the most lucrative food business concepts due to its low initial investment and the simplicity with which operations can be constructed and scaled. We’ve compiled this comprehensive to-do list to help you get your cloud kitchen business up and running in the UAE.
1. Select a Name for Your Business
Before beginning any business in Dubai, one is required to select a name for the business. In addition, before deciding on the name, you must adhere to a particular set of naming regulations. It would help if you steered clear of any insulting or disrespectful words and the names of well-known companies. In addition, you need to check to see if the name you intend to use is registered with the relevant authorities.
2. Choose Your Cloud Kitchen Location
Your next move should consider various locations for your cloud kitchen. You’ll need to choose somewhere that fits your budget range and is convenient for delivery workers. If you already have a potential site in mind, you should double-check with the Dubai Municipality to ensure it is suitable for cloud kitchens.
A perfect, highly-visible location is not necessary for a cloud kitchen. It is possible to run a cloud kitchen business instead of a smaller, lower-cost facility of 250-300 square feet.
Cloud kitchens are adaptable and can be installed in various locations, including residential areas, newly developed parking spaces, and the backsides of retail markets. You can cut the upfront cost using shared kitchen space, another option.
3. Get Required Permits and Licenses
Before opening a cloud kitchen, you must first obtain the necessary licenses and certifications. You could avoid potential legal complications by ensuring that you have all the required permits and licenses.
In the United Arab Emirates, a Trade License and a Food License are the two most important licenses necessary to launch a cloud kitchen business.
A. Trade License
Before applying for a business license, you must select a jurisdiction to run your cloud kitchen. It might be the mainland of Dubai, or it could be the free zone. If you choose the mainland, you must submit your application to the DED in Dubai.
Those who select free zones will appear before the appropriate controlling authorities to obtain a trade license. Getting approval for business activity and trade names is essential in both jurisdictions.
B. Food License
The Dubai Municipality’s Food Safety Department is the official governing agency issuing restaurant permits. To launch a cloud kitchen model, business owners must comply with the regulations set forth by the food safety department.
Your kitchen must adhere to all local health regulations, and you and your workers will need expertise in food safety standards. All of the necessary appliances, spaces, and supplies for food processing and storage, and preparation must be in good working order.
To comply with these regulations, you are required to have the appropriate equipment and storage space. After completing the inspection, you will be given a food license.
4. Open a Corporate Bank Account & Get Insurance
You will also require a corporate bank account to run a cloud kitchen in Dubai. You can create an account with any reputable bank in the United Arab Emirates (UAE) or Dubai. A bank account is essential to conduct business-related internet transactions and fund transfers.
In the next step, you will need to obtain insurance. The reason you should do this is to protect yourself from liability claims.
It would be best if you considered the following types of insurance:
· Property insurance
· Liability insurance
· Product liability insurance
· Workers’ compensation insurance
Equipment & Packaging for the Kitchen
You should buy different appliances for your kitchen depending on the cuisine you plan to serve. However, to begin operating a cloud kitchen, you will need certain necessary equipment, such as a cooking range, refrigerator, oven, cutting knives, and so on.
Packaging is a crucial part of any food delivery service. If the food is delicious but poorly packaged, the entire dining experience will be ruined for the customer, and your brand’s reputation will hit. Investing in high-quality plastic containers, cartons, spoons, and other packaging materials that adhere to industry standards is essential for proper food packing.
5. Hire Your Team
There is no need for a large staff to manage a cloud kitchen because this type of business does not involve Front-of-House operations. It’s smart, to begin with, a modest staff and hire more people as the business grows.
To begin, you must determine which open roles need to be filled. To what extent, for instance, will you require outside help with the cooking, or will your in-house personnel be adequate? You can begin the hiring process once you have identified the open positions.
6. Choose an Online Delivery Service
You must now consider packaging and delivery for your cloud kitchen to fulfill online food orders. Many companies offer delivery services in Dubai, from well-established multinationals to innovative startups. You should choose a service that is suitable for your requirements. Some service providers charge a hefty cost; therefore, it is always prudent to conduct thorough due diligence.
You will have a smooth cloud kitchen setup if you follow these instructions. Make sure you have done your homework and have a plan.
The Key To a Successful Business Is Marketing!
The level of effort that is put into marketing a cloud kitchen can considerably impact the level of success it achieves. You can achieve this by having many satisfied customers, ranking high in search engine results, and being active on social media.
Findings reveal that the average rating of a restaurant’s customers significantly impacts the business’s bottom line. In light of this, remember that how you respond to criticism, whether positive or negative, can significantly affect how customers view your company.
The market in Dubai is highly competitive; thus, offering discounts and deals can help bring in more customers. Marketing your deals on sites like Groupon and Yelp is a great way to gain new customers. The trick is to offer discounts often but not so frequently that customers think your business always has sales.
Last but not least, loyalty programs can greatly assist consumer retention. You can devise a strategy all on your own, or you can join forces with one of the many already in place.
Do You Want to Start Your Own Dubai Cloud Kitchen?
The United Arab Emirates (UAE) has seen exceptional growth in the food and beverage business. Getting a cloud kitchen license in Dubai is a great way for any new or old restaurant to expand its operations. Experts at ExpressPRO Business Setup provide comprehensive support to help you launch your company quickly.
Our professionals will help you set up your business, from locating a suitable spot for your cloud kitchen to securing the necessary licenses. Get in touch, explain your requirements, and relax while we handle everything else.