Did you know that Dubai is home to over 13,000 restaurants? Establishing a cloud kitchen in Dubai can be a highly profitable business opportunity. However, there are several crucial factors to consider before embarking on this venture. In this article, we will provide a comprehensive overview of the process involved in launching a cloud kitchen in the UAE. We will cover everything you need to know about how to starting cloud kitchen business in dubai.
But first, let’s understand what exactly a cloud kitchen business entails. A cloud kitchen, also known as a virtual kitchen, ghost kitchen, or delivery-only restaurant, operates solely for food delivery services. Unlike traditional restaurants, cloud kitchens do not have dine-in facilities. Instead, they focus entirely on preparing meals for delivery to customers’ doorsteps.
If you are planning on starting a small-scale business in Dubai, a cloud kitchen might be the perfect option for you.
Starting a cloud kitchen in Dubai may present some complexities, but Company Setup Consultants is available to provide assistance and guidance throughout the process. In this section, we will explore the reasons why launching a cloud kitchen is an excellent idea for aspiring entrepreneurs, as well as how Company Setup Consultants can support you in establishing your own cloud kitchen business in Dubai.
Why is starting a cloud kitchen the best idea for you? Cloud kitchens have gained immense popularity in recent years, particularly in urban areas with a high demand for food delivery services.
What is a Cloud Kitchen Business?
Cloud kitchen, also known as a virtual restaurant, ghost kitchen, or dark kitchen. A cloud kitchen mainly offers food delivery and take-out services to its customer. A cloud kitchen does not have a physical establishment and dine-in services compared to a typical restaurant. Instead of serving customers directly, cloud kitchens primarily rely on third-party delivery platforms such as Uber Eats or Zomato to deliver their food to customers’ doorsteps.
To set up a cloud kitchen in Dubai, it is necessary to acquire a commercial license from the Department of Economic Development (DED). This license enables you to legally operate your food delivery business and ensures a smooth start for your cloud kitchen venture.
Steps to Start a Cloud Kitchen Business in Dubai, UAE
The process of starting a cloud kitchen business in Dubai, UAE is pretty straightforward, but it slightly differs from the process of starting a typical small business. You can easily follow through the process and start your very own cloud kitchen if you have experience with starting a business. However, if you are new to this, Company Setup Consultants is here to help you through the process of starting a cloud kitchen in Dubai.
Here are the complete steps to start a cloud kitchen business in Dubai:
- Select a Company Name
- Select a Business Location
- Prepare Your Infrastructure and Equipment
- Acquire the Necessary Licenses
- Hire Staff
- Open Corporate Bank Accounts
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All these steps are discussed in detail below to make it easier for you:
Step)1. Select a Company Name
The first step of starting a cloud kitchen in Dubai is selecting the company name. You will have to follow the rules and regulations of the local authority while choosing a name for your company. You will need to make sure that the name you choose for your cloud kitchen is unique in Dubai and it does not contain any profanity.
When it comes to setting up a cloud kitchen in Dubai, entrepreneurs have three primary options to choose from:
Step)2. Select a Business Location
When selecting a location for your cloud kitchen in Dubai, there are several key considerations to keep in mind:
- Space Size
- Rent Costs
- Proximity to Target Market
- Parking Availability
Step)3. Prepare Your Infrastructure and Equipment
Next, you will need to gather the equipment you will need to run your cloud kitchen business. The equipment ranges from refrigerators, ovens, fryers, freezers, cutlery, and other relevant equipment. You will also need to arrange food packaging and food containers so that the food reaches your customer safely and fresh.
Step)4. Acquire the Necessary Licenses
A cloud kitchen requires several licenses for you to operate legally. You will need to acquire a food license along with a trade license to start your business operations.
(a). Trade License
You need to acquire a trade license from the Dubai Department of Economic Development (DED) to run your business side of the operation. You will need to submit an application and the relevant documents required by the authority to acquire a trade license.
(b). Food License
As a food-based business, you will also be required to acquire a food license to run a cloud kitchen. You will need to submit floor plans for your establishment. There you need to note any food storage areas, windows, equipment, exits, and entrances to the Food Safety Department of Dubai. Once approved, you can collect the food license.
(c). Additional Applications
You will additionally need to secure a resident visa to start your cloud kitchen business in Dubai. You will be allowed to sponsor your family, friends, and employees after acquiring the resident visa as a business owner.
Step)5. Hire Staff
You will need to hire qualified staff to run your business properly. You can operate a cloud kitchen with minimal staff. It will save you a lot of additional costs. However, the staff must have the required knowledge and skillset to run the cloud kitchen. Hiring the staff should be pretty easy for you as Dubai is home to a skilled workforce.
Step)6. Open Corporate Bank Accounts
The final step of the process is to open a corporate bank account to handle all the financial transactions. As a cloud kitchen, you will need to depend heavily on online transactions. So, choose an institution that offers the most flexibility. You should also introduce a wide range of payment options for your service for the convenience of the customers.
Benefits of Starting a Cloud Kitchen Business in Dubai, UAE
Here are the benefits that come with starting a cloud kitchen in Dubai:
- Low Overhead Cost
- Low risk high profit
- Fewer Staff
- Improved cash flow
- Opportunities for business growth
- Extended Flexibility
- More Efficiency
- Easy Expandability
- Saving on Infrastructure
- Large Audience Pool
- Easley Manageable
- Make data driven decision
Cost of Starting a Cloud Kitchen in Dubai
To start a cloud kitchen in Dubai, you’ll need a Cloud Kitchen License. With the help of experienced business setup advisors, you can smoothly obtain your licenses. The total cost for starting a cloud kitchen in Dubai typically ranges from 75,000 to 100,000 AED. This cost covers licensing and other expenses. However, the exact expenses can vary based on factors like your kitchen’s size, the services you provide, the type of license you require, and more.
Cost of Cloud Kitchen License in Dubai
Obtaining a cloud kitchen license in Dubai Mainland can cost you anywhere from 16,000 AED to 25,000 AED. This cost might change depending on the specific needs of your business, especially its size.
For setting up a cloud kitchen in Free zones, the cost will depend on the size of the warehouse you choose.
Documents Required to Open a Cloud Kitchen in Dubai
To establish a cloud kitchen business in Dubai, you’ll need to submit essential documents to the relevant department, such as:
- Business Plan Copy:
- Furnish a copy of your business plan outlining your cloud kitchen’s concept, target market, marketing strategy, and financial projections.
- Owner/Shareholder Documentation:
- Provide passport copies of the owner/shareholder, along with their visa copies. Ensure the passports are valid.
- Company Name Options:
- Submit a list of preferred names for your company, adhering to the naming regulations set by the Department of Economic Development (DED).
- Lease Agreement:
- Supply a copy of the lease agreement for your cloud kitchen location, ensuring it complies with legal requirements and Dubai Municipality regulations.
Technology Needed For A Cloud Kitchen in Dubai
These are the tech-related requirements to set up your cloud kitchen business.
- Centralized Ordering System
- Online Ordering Via Website and/or Mobile App:
- Call Center Panel To Receive Telephonic Orders:
- Integrated Kitchen Display System:
- Integrated Delivery System For Food Delivery:
- Robust Inventory Management System:
Ready To Start Your Cloud Kitchen in Dubai with Company Setup
If you want to start a cloud kitchen business in Dubai, UAE but you do not know where to get started, then you are in the right place. This is because Company Setup Consultants has helped numerous entrepreneurs from all over the world start various businesses in the UAE. Contact us today and hit the ground running.
To Speak with our Experienced Business Consultants for further information and assistance, call us at +971-582-595-164. Send a WhatsApp Message for Chat Query on +971 582595164 or email us at info@companysetup.ae.
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Hello..
Please provide me the details of starting a cloud kitchen business in mainland Dubai.