This article will help you understand how you can start your own cloud kitchen business in Dubai UAE.
Did you know that Dubai is one of the region’s premier spots to start a restaurant? Hundreds of entrepreneurs come to Dubai annually to make their culinary dreams come true. Increasingly, that dream has shifted from the traditional restaurant model to cloud kitchens.
What is a Cloud Kitchen?
Before you start thinking that a cloud kitchen involves you working at the top of a skyscraper in a sea of clouds, you can rest easy because this is not the case. Instead, a cloud kitchen is a food business that doesn’t have a customer-facing front and depends primarily on food delivery services.
To launch a cloud kitchen, you must obtain a commercial license from Dubai’s Department of Economic Development and Tourism. You will also need to register and meet the regulatory standards set by Dubai Municipality.
As a part of incorporating your business in Dubai, you will need to provide a business plan that includes plans for your kitchen setup, workforce, hygiene protocols, menu, and delivery operations.
Why Launch a Cloud Kitchen Business in Dubai?
Cloud kitchens offer many advantages over traditional restaurants. These can include:
- Fewer workers are needed
- Lower overhead costs
- Less space is needed
- Location isn’t a critical factor if delivery services can meet the demand
One of the biggest factors entrepreneurs select cloud kitchens is that it allows them to become profitable quicker than traditional models with higher upfront costs. There is less risk involved, and you don’t need to hire waiters or customer-facing staff.
How Do I Get My Cloud Kitchen License?
The first step of a company formation in Dubai is researching to give your business the best chance of success. Research can come in many forms, whether you pay an external agency to do taste tests for your menu items or conduct a survey to look for gaps in the market. If you have done proper due diligence, there is no right or wrong way.
The second step is to look for the best location for your cloud kitchen. You will need to find a site within your budget and located in an area accessible to delivery drivers. Once you have a location in mind, it’s best to check with Dubai Municipality to ensure that it meets its requirements for cloud kitchens.
Once you’ve done your research and found a location, you can begin the business incorporation process. You will need to submit a few options for the name of your business, the company structure, and a lease agreement for the physical site. At the same time, you will have to get the requisite approvals from Dubai Municipality.
Once you have your business license and clearance from Dubai Municipality, you’ll need to open a business bank account and get liability insurance for your business. Lastly, you will need to hire the staff that will make all that delicious food!
Selecting a Delivery Service Provider
Dubai has a vast selection of delivery service providers, from global companies to new local upstart firms. You will need to select a provider that best suits your needs. Some service providers take quite a substantial fee, so strong due diligence is always warranted.
If your cloud kitchen is a big success, you might consider launching your delivery service.
Marketing of Your Business is the Key!
The success of a cloud kitchen can be significantly influenced by how much you invest in marketing. This can include having a solid social media presence, an SEO-optimised website, and lots of positive reviews. Research has shown that a food establishment’s average rating strongly influences sales. So even if you get an occasional negative review, how you proactively respond will greatly impact how others perceive your business.
Dubai is a very competitive market, and special offers can go a long way in attracting new clients. You can publicize your specials via Groupon, Yelp, etc. The key is to have the right balance of specials so that consumers don’t associate your establishment that is constantly on sale!
Lastly, loyalty programs can go a long way in retaining customers. You can create your plan from scratch or team up with one of the many established schemes in the city.
Get Solid Advice for Your Business that Will Give You an Edge
Our consultants have helped various cloud kitchens launch in Dubai & across the United Arab Emirates. Let our team take care of the paperwork while you focus on perfecting the right menu for your establishment. We offer a free no-obligation consultation to get you on the right path.