As meal deliveries have flourished, cloud kitchens have grown as a more direct means to offer food to consumers while skipping costly restaurant overheads. The UAE’s online food business is expanding. In 2020 sales reached $412 million and may reach $619 million by 2025.
Here’s what you need to know before starting your cloud kitchen in Dubai. We explain everything from benefits to cost to the steps for applying for the licences. We will cover the following topics:
- • Benefits of starting a cloud kitchen in Dubai
- • Checklist of things needed to start a cloud kitchen in Dubai
- • The technology required to start a cloud kitchen in the UAE
- • Steps to start a cloud kitchen business in Dubai
- • What are the costs involved for a cloud kitchen in Dubai?
- • Working with Creative Zone
Benefits of starting a cloud kitchen in Dubai
In some ways, a cloud kitchen has certain benefits over a conventional dine-in establishment. They are as follows:
Low infrastructure cost: Cloud kitchens have a low barrier to entry, which allows you to offer a variety of food menu options. You do not have to pay rent or buy costly premises in affluent neighbourhoods to operate a virtual kitchen. Instead, you may run a cloud kitchen out of a 250–300 Sq ft location, drastically reducing costs. You might save money on startup costs by using a shared cooking space.
Low risk, high reward: A cloud kitchen provides a low-risk and high reward opportunity. You do not need a substantial operating workforce, and there are no significant overhead expenditures compared to a dine-in restaurant. Furthermore, foreclosure of your business is not as complicated as a physical restaurant.
Easily manageable: Since the process is technologically focused, order administration is simple, and the risk of mistakes is potentially low. Additionally, you can handle all customer queries either by phone or chat.
A broad audience base: More than 70% of UAE residents choose to order meals from mobile apps. Using an online food aggregator like Talabat or Zomato will help you reach a broader range of people.
Checklist of things needed to start a cloud kitchen in Dubai
Here is a complete checklist for starting a cloud kitchen company in Dubai:
1. Location & property: Cloud kitchens do not need high-traffic locations. Residential areas and vacant parking spaces can be ideal locations for kitchens.
2. Licenses: Starting a cloud kitchen requires the proper licences and registration. In the UAE, you need both a food and trade licence to start a cloud kitchen business.
3. Staff: Cloud kitchens require only a few staff. Your chef can create different cuisine for multiple brands from one kitchen.
4. Kitchen equipment & packaging: Your kitchen equipment needs to depend on the food you provide. A kitchen range, refrigerator, oven, and cutting implements are among the essentials required to get started in the cloud kitchen. Another critical aspect of operating a food delivery service is packing. You need to invest in industry-standard containers and boxes to guarantee correct food packing.
5. Generating online orders and marketing: Since a cloud kitchen only accepts online orders, you must spend extensively on marketing in the beginning. Online marketing is crucial to generating brand visibility when you do not have a physical presence.
The technology required to start a cloud kitchen in the UAE
Since cloud kitchen order handling relies heavily on technology, some of the tech requirements for setting up your kitchen are as follows:
Centralised ordering system: A virtual restaurant needs an integrated online ordering system that streamlines operations. With various online food ordering platforms in your cloud kitchen, manually inputting the order data into the point-of-sale system (POS) is a huge pain. The centralised system that takes orders from many platforms and keeps track of them is an excellent investment.
Integrated kitchen display system: Every minute counts when working in a high-volume cloud kitchen, and an integrated kitchen display system is an absolute must. A KDS improves operations, recognises delays in order preparation, and optimises preparation time.
Inventory management system: Having an inventory management system is vital for any kitchen. It helps manage stocks and reduce food wastage. Intelligent inventory management systems detect daily stock use and alert you to buy more when required. It will also aid in keeping your food prices in check.
Integrated delivery system for food delivery: An in-house food delivery system allows you to swiftly allocate orders based on the location and the delivery executive’s availability. You can also check the status of an order and send automatic SMS updates to your customers.
Steps to start a cloud kitchen business in Dubai
To launch your business, you need to ensure that your company complies with all the applicable laws and regulations of the emirate. Here are five easy steps to starting a company in Dubai:
Step 1: Choose a name
You must pick the name of the company and the types of operations that your company will engage in.
Step 2: Select a location
When selecting your location, you need to consider factors like accessibility to your market, suitability to the nature of your business, and transit availability to get the most out of your kitchen.
Step 3: Documentation submission to the DED
At this phase, you must get all relevant government clearances as required by the Department оf Economic Development. The company formation and licensing happen at the same time.
Step 4: Obtain licences
Once the necessary authorities have approved the company activity, you can get a Memorandum of Association, Certificate of Incorporation, trade licence, share certificates, visas, tenancy agreement, labour cards, and other legal documents.
Step 5: Process your visa
It is time to start your business in Dubai. Along with your visa application, you may also apply for visas for staff.
What are the costs involved for a cloud kitchen in Dubai?
The cost of starting a cloud kitchen business in the UAE is AED 23,000. Many variables will influence the cost of creating and managing a cloud kitchen. Among the most important aspects of your business is the size and location of your premises. In addition, you must get food and commerce permits from the appropriate authorities.
Talk to our business setup managers at Creative Zone for a personalised overview of the fees involved in launching your own business.
Working with Creative Zone
Nearly two-thirds of UAE residents already purchase meals via apps, so now is a great time to get involved in the thriving cloud kitchen industry.
Creative Zone is the UAE’s oldest and most trusted business setup expert. Since 2010, we have helped over 44,000 entrepreneurs successfully establish their businesses.
We specialise in delivering solutions that best fit your needs when starting a business by providing quick, dependable, hassle-free, and experienced assistance.
Assisting with your business setup in Dubai is only the start. We also provide a range of services, including tax preparation, legal advice, and HR management.
When you become our client, you get access to our community of fellow entrepreneurs. You can interact and network with the region’s larger business community through CZ Connect, our networking tool.
Take advantage of our FREE consultations today and get solutions to help with your free zone or mainland company formation in Dubai.
Prices offered by free zones are subject to change without notice. Please get in touch with Creative Zone for an updated price based on the current promotions and availability.