The UAE has long been home to a vast and thriving food industry, presenting a lucrative opportunity for savvy Indian and foreign investors.
Considering the costly rentals, evolving customer trends, and the tight profit margins of a traditional restaurant, moving towards the delivery model is proving to be more profitable for food business enthusiasts.
When you get started with Shuraa Business Setup, getting your Cloud Kitchen Dubai license can be a breeze.
What is Cloud Kitchen?
A cloud kitchen is a commercial kitchen that specializes in preparing food for delivery. Unlike a traditional restaurant, it does not have a dine-in option. Customers can place orders through a website, an online app, or a phone number.
A delivery-only restaurant is a low-risk, low-investment, high-profit business strategy. Compared to a traditional restaurant, starting a cloud kitchen is substantially less expensive.
Popular apps like Deliveroo, Uber Eats, Talabat, and Zomato are crucial to the cloud kitchen industry's success. As a result, collaborating with one or more of these companies is critical when you set up a cloud kitchen in Dubai.
Benefits of Starting a Cloud Kitchen in Dubai
The cloud kitchen format offers a plethora of opportunities to Indian entrepreneurs while keeping operating costs under control. Here are some benefits to obtaining a cloud kitchen license in Dubai.
1. Cost-Effective Startup Model
Compared to typical brick-and-mortar restaurants, cloud kitchens have much reduced startup expenses. Moreover, they require less space, fewer employees, and fewer extras like signage and advertising.
2. Minimized Risk for New Concepts
Cloud kitchens can also provide a low-risk platform for existing restaurants to test new foods or concepts before introducing them in their physical locations.
3. Diverse Expansion Potential
A cloud kitchen allows restaurateurs to try out alternative concepts and forms. It has inspired many food delivery business models, including multi-brand kitchens, aggregator-managed cloud kitchens, and co-working spaces.
4. Enhanced Menu Flexibility
Unlike a restaurant, the menu in a cloud kitchen can be changed more quickly. There's no need to spend time and money replacing physical menus when you can change them digitally in minutes. Besides, if a specific item is an insufficient supply, you can quickly adjust the menu.
5. Streamlined Operational Efficiency
Cloud kitchens are more popular than restaurants. Restaurants find it challenging to cater to dine-in guests and delivery requests during busy hours. On the other hand, the cloud kitchen business is more efficient because it focuses on the delivery-only strategy. The delivery process is much quicker and simpler.
How to start a cloud kitchen in Dubai?
Here is a step-by-step process to Start a Cloud Kitchen Business in Dubai, UAE.
1. Choose Your Cloud Kitchen Company Name
Choosing a company name is a must before starting any business in Dubai. Additionally, before selecting the name, you must follow a specific set of naming conventions.
You should avoid any rude or disrespectful words and the names of well-known organizations. Besides, you should also check if the name you want to use is available for registration.
2. Find an Ideal Location
A cloud kitchen doesn't need to be in a popular area to be successful. Instead, a cloud kitchen business may be run from a small facility, lowering costs drastically. Ghost kitchens can be set up in various settings, including residential areas, new parking lots, and market backsides. Alternatively, you can use shared cooking space to save money on start-up costs.
3. Finalize Your Equipment
The cuisine you plan to serve determines the type of kitchen equipment you get for your kitchen. However, a cooking range, refrigerator, oven, and cutting knives are only a few necessary items needed to get a cloud kitchen up and running.
4. Obtain Necessary Cloud Kitchen Licenses
Acquiring a cloud kitchen license in Dubai is mandatory before starting the business. Besides, having the necessary permits and licenses would save you from legal hassles.
Getting the below licenses is mandatory to legally start a cloud kitchen in Dubai.- Trade License: You should select whether you want to operate on the mainland or in a free zone before getting your trade license. The controlling authority for free zones deals with trade license applications. Alternatively, you'll need to apply to Dubai's Department of Economic Development (DED) to approve your selected trade name and business activity if you're starting a mainland firm.
- Food License: The Food Safety Department of Dubai Municipality issues food licenses. You must submit your food preparation area floor plan to receive this license. This should include food storage spaces, food processing equipment, washing equipment, entrances and exits, windows, and ventilation points.
5. Apply for Additional Permits
To work in the UAE, you must have a resident visa in addition to the above licenses. Biometric scanning, a medical exam, and a chest x-ray are all part of the procedure.
Additionally, you can sponsor others for their visas if you have a UAE company license. A spouse, parent, or kid, and a domestic worker such as a housekeeper, could fall into this category.
6. Set Up a Corporate Bank Account
You will also need a corporate bank account to operate a cloud kitchen in Dubai. Experts from the Shuraa Business Setup can handle all of your applications and communicate with the appropriate authorities on your behalf.
7. Decide on Packaging Solutions
Another important aspect of having a food delivery business is packing. No matter how excellent the food is, if it is not packaged correctly, the entire customer experience will be ruined, and your brand's reputation will suffer. To ensure proper food packing, invest in high-quality plastic containers, cartons, spoons, and other packaging materials that match industry needs.
8. Hire Your Team
Since cloud kitchens primarily focus on delivery, you can start with a small team. Hire essential staff to manage cooking and order fulfillment, and expand as your business grows.How much does it cost to start a cloud kitchen in Dubai?
In Dubai Mainland, the cost for a cloud kitchen license typically ranges from AED 15,000 to 50,000 AED Depending on the specific requirements, such as the size of the warehouse and the services you intend to provide.
Speak to the Shuraa Business Setup professionals for a personalized overview of the cloud kitchen license cost in Dubai
Ready To Start Your Cloud Kitchen in Dubai?
The food and beverage industry is booming at an unprecedented rate in the UAE. Whether you are a budding restaurateur or an already established food business, take your business to the next level by acquiring a cloud kitchen license in Dubai. With Shuraa Business Setup experts, you get complete assistance to get your business up and running in no time.
From finding a location for your cloud kitchen to obtaining the licenses, our experts provide end-to-end support and free you from all the business setup worries. All you have to do is contact us and tell us what you need, and we'll take care of the rest.
To learn more about starting a cloud kitchen in Dubai, book a free consultation with our consultants at Shuraa
