Several investors in Dubai are looking forward to starting a cloud kitchen business in Dubai. If you’ve been seeking help on how to start a cloud kitchen business in the UAE, we got you covered.
In this article, you’ll get everything you need to know to launch a successful cloud kitchen business in Dubai flawlessly. Without wasting time, here are the noteworthy steps you need to consider when launching your cloud kitchen business in the UAE;
- Business Location
- The Cloud Kitchen Trade License
- Equipment for the business
- Recruiting staff members
- Business Marketing
- Integrated Online Technology
Currently, the food delivery market in Dubai is on the rise making the cloud kitchen business in Dubai booming like never seen before. Therefore, if you want to start a cloud kitchen business, this year might be the right opportunity for you to set up a successful cloud kitchen business.
Thus, the online food delivery practices are set to increase to $365 billion by 2030 worldwide. So, this taps is a good chance for anyone interested to start an online restaurant to have hope for a better tomorrow. That means; that starting a cloud kitchen business in the UAE is among the lucrative business idea to embrace soonest.
Additionally, as per the UAE statistics, online food delivery is expected to skyrocket at a yearly rate of six percent and has a high likelihood to continue for the next 5 years.
As mention, because of the high rent rates, thin profit margins of a traditional restaurants and shifting customer trends, the majority of food services operators are now finding their way into the online food delivery method commonly known as the cloud kitchen model in Dubai.
Therefore, to get in-depth knowledge about what cloud kitchen is, we’ve done intensive research and compiled the following for your benefit;
- What is a cloud kitchen?
- Top benefits of starting a cloud kitchen service
- Factors to consider before starting a cloud kitchen business
- How to open a successful cloud kitchen business in Dubai
What is a cloud kitchen?
This is a restaurant business model where foods are prepared and delivery is done online app, or through telephone, websites among others.
A Cloud kitchen is also known as a dark kitchen, virtual restaurant, or ghost kitchen. And so, this mode of restaurant business doesn’t provide a dine-in facility for clients to share their meals within the premises.
Some of the well-renowned online apps used in the cloud kitchen model include Uber Eats, Deliveroo, Zomato, and Talabat. Therefore, collaborating with other third-parties platforms is exceedingly important.
This type of business is deemed as a low investment, low-risk and it is highly profitable, unlike the traditional restaurant. Therefore, it is a bit affordable to start a cloud kitchen business compared to a traditional restaurant.
Top benefits of starting a cloud kitchen service
Before starting your cloud kitchen business in Dubai, it is crucial to familiarize the importance of this type of business model. Cloud kitchen business comes with lots of advantages that make it easy for anyone interested in the business to start without any inconveniences.
Thus, here are the benefits of cloud kitchen business in Dubai
Fewer Infrastructures needed
Cloud kitchen comes with a low barrier, especially for beginners. Therefore, this makes it easy to start and have a myriad of food menus within the business. Similarly, you don’t need to buy any costly real estate for your cloud kitchen business setup.
However, what you need to do is choose a site that is close to your clients and the cities where your potential customers are.
Traditional restaurants on the other hand require hefty rents and huge deposits when launching the business. With ghost kitchen, you’d have to save lots of infrastructures and cost you less to start the business.
Enlarge Business Opportunities
Starting a cloud kitchen in Dubai doesn’t bind you only to the virtual type of restaurant. You can simply expand your reach, especially when you possess a restaurant with the help of a ghost kitchen. By so doing, it can cater to a larger audience that is already in love with your foods.
There are lots of cloud kitchens in Dubai competing neck-to-neck. So, it is recommended to market your cloud business heavily to get brand recognition.
Simple to Manageable
Generally, a cloud kitchen is simple to manage, unlike traditional restaurants. Nonetheless, this doesn’t mean you wouldn’t face any difficulties when running this business. Compared to a dine-in restaurant, this model has few tasks to handle.
Therefore, the few tasks help you keep up with the business composure, and the stress the business might come with.
Once you enroll in the cloud kitchen business, you aim to make delicious food and ensure all foods are delivered on time. Almost everything is done by telephone or online.
Low Risk, High Profit
Opening a cloud kitchen exposes you to low-risk management compared to a traditional restaurant. That means; you don’t need to have a large pool of teams to manage your work, the starting capital is low and the overall maintenance of the site is quite manageable.
So, if you can produce quality food at a reasonable price, you’ll attract a sizeable number of customers to your business.
On the other hand, if in any case, you want to close your business, this won’t cost you much as well. For dine-in restaurants, business closure might results in a massive loss because of the massive investment previously done when launching the business.
That means; that starting a cloud kitchen business is the best option for all investors looking forward to running a low-risk and high-profit business.
Factors to consider before starting a cloud kitchen business
How to accept and execute orders
One of the crucial factors to put into consideration before starting a cloud kitchen business is how to accept and execute orders in your business.
In this case, despite using a telephone calls or emails, you can collaborate with other robust online deliveries app to enable swift and effective orders deliveries to customers.
Site of the Business
It is futile to talk about the location having known this is a virtual business, right? Location seems to be one of the best tenets to deem fit, especially when it comes to business setup in Dubai. Therefore, the location of your kitchen ought to be strategically located for the benefit of your business.
If you happen to open a cloud kitchen business, the location of the business must be in proximity to the target audience. This might facilitate the timely delivery of food.
Also read: How to get a foodtruck license in Dubai
How to open a successful cloud kitchen business in Dubai
To start a successful cloud kitchen in Dubai, you must obtain a professional UAE trade license via the Department of Economic Development and Food and Safety authorities in Dubai. Thus, you’ll be required to have a Trade License and Food license to be permitted to carry out your business activities in Dubai.
Therefore, make sure to have the above documents in place before starting a ghost kitchen in Dubai.
Additionally, you’ll be required to adhere to the following steps to have productive business in Dubai;
- Business Location
- Equipment for the business
- Recruiting staff members
- Market your business
- Integrate Online Technology into your cloud business.
Generally, it is a no-brainer to start a cloud kitchen in Dubai, especially if you are well conversant with the legal requirements needed.
Nonetheless, there are lot of documentation required by the UAE authority when it comes to business names and licensing applications. Don’t worry; we at Vigor Business Set Up offer guidance and business setup ideas in Dubai. We help investors with various issues such as licensing applications, banking activities, translation, consultations, and other paperwork needed to start your business.
Feel free to reach out to us for any business setup ideas in Dubai or help to start a successful business in the UAE faster.