Cloud Kitchen In Dubai – How to Start a Business

Cloud Kitchen In Dubai

In Dubai, opening a cloud kitchen might be a successful business enterprise. Before you begin, there are a few crucial issues to think about. We will give a general overview of the procedure for launching a cloud kitchen in Dubai in this article.

We will also go through the licensing requirements as well as other crucial factors. So continue reading if you’re considering opening a cloud kitchen in Dubai.

What Is Cloud Kitchen?

A commercial kitchen that doesn’t serve clients on-site is referred to as a cloud kitchen. Cuisine companies that use cloud kitchens generally use third-party delivery services like Uber Eats or Zomato to serve their food to customers.

Due to their smaller footprint and lower labor requirements compared to conventional restaurants, cloud kitchens can be a fantastic alternative for food enterprises. They can be more profitable because they also have lesser overhead.

Benefits of Cloud Kitchen Over Regular Restaurants

Cloud kitchens provide several benefits over conventional restaurants.

As we previously indicated, cloud kitchens need less room and personnel. They can be more profitable since they have lower overhead costs.

But let’s examine the benefits in further detail as a group.

Top advantages of launching a cloud-based cooking service

Savings on Rent

The ability to be placed in smaller spaces is one of the main benefits of cloud kitchens. Rent, which is sometimes one of the major expenses for restaurants, might be reduced as a result.

Commercial rents in Dubai can be exceedingly expensive. But with a cloud kitchen, you might be able to get away with paying less money for a smaller rental space.

This can assist you in lowering your expenses and raising your profit margin.

Better Cash Flow

The ability to increase cash flow is another benefit of cloud kitchens. This is due to the fact that you don’t need to spend as much money up front on things like furnishings and décor.

You can start small and scale up with a cloud kitchen as your business expands. This entails that you may put your revenues back into the company, which will enable you to expand even more quickly.

Fewer Employees Needed

Cloud kitchens also have the benefit of requiring less staff. This is due to the lack of a requirement for waitstaff or front-of-house personnel.

All cooking and food preparation happens in the kitchen in a cloud. After cooking, the dish is then brought to the customer’s door.

This means that by employing a smaller crew, you can reduce your salary costs.

Larger Audience Pool

The ability to reach a wider audience is another benefit of cloud kitchens. This is due to the extensive consumer base of delivery platforms like Uber Eats and Zomato.

A cloud kitchen may therefore be the ideal answer if you want to expand the customer base for your restaurant.

License Requirements for Dubai Cloud Kitchens

The Department of Economic Development(DED) must provide you a commercial license if you wish to open a cloud kitchen in Dubai. Additionally, you must register your company with the Dubai Municipality.

You must provide a thorough business strategy when you apply for your license. This should contain details regarding your kitchen configuration, personnel, menu, and delivery procedures.

It is significant to note that Dubai’s residential neighborhoods do not now permit cloud kitchens. Therefore, you will need to locate a business place to rent or lease.

How to launch a profitable cloud kitchen enterprise in Dubai

After discussing the benefits of cloud kitchens, let’s look at how to set one up business in Dubai.

Here is a step-by-step instruction to start the business:

Step 1: Choose a business structure as the first step.

Selecting a business structure comes first. In Dubai, there are three primary choices for cloud kitchens:

• single-person business
• Limited-risk enterprise (LLC)
• Free zone business.

You must create an LLC or a free zone corporation if you are a foreign national.

You need a local sponsor in order to form an LLC. Typically, a national of the UAE holds a 51 percent ownership stake in the company.

You are allowed to have 100 percent foreign ownership of a free zone business.

Step 2: Select a location

Choosing a place for your cloud kitchen is the next step. As previously indicated, residential locations are not currently permitted for cloud kitchens. Therefore, you will need to locate a business place to rent or lease.

There are a few considerations to make while picking a location:

• The area’s dimensions
• The rent’s cost
• The distance to your potential market
• Parking accessibility

Step 3: Submit a License Application

You must submit an application for a trade license once you have selected a location.

You must submit the necessary paperwork to do this:

• Passport copy
• Visa copy
• Copy of lease contract
• Ejari certificate copy

Step 4: Register your business

Registration of your company with the Department of Economic Development(DED) is the following procedure.

You must submit the necessary paperwork to do this:

• Business license copy
• Passport photocopy
• Visa copy
• A leasing contract

Step 5: Getting the food license

Obtaining a food license from the Dubai Municipality is the next stage.

You must submit the documentation you obtained above in order to do this. A food safety check will also be required for you to pass.

Your kitchen must adhere to all municipal standards and you and your team will need training on food safety practices.

These rules call for having the appropriate tools and storage spaces.

You will receive a food license once you have passed the inspection.

Step 6: Getting insurance

You should think about the following insurance options:

• Product liability insurance
• Property insurance
• Liability insurance
• Insurance for workers

Step 7: Establish a Business Bank Account

Separating your personal and corporate finances is essential. Opening a corporate bank account for your cloud kitchen is the next step.

Step 8: Decide on packaging and delivery

• Employ your own delivery personnel.
• You may collaborate with a delivery company.
• You could let clients pick up their orders.

Step 9: Promote Your Cloud Kitchen

Setup a Cloud Kitchen in Dubai Right Now

Your cloud kitchen business might prosper in the UAE, where the food industry is expanding. Because it determines your geographic audience, you should be aware of the best places to put up your cloud kitchen in Dubai. With Eagle Wings Business Setup, you receive comprehensive business support that enables you to obtain the necessary business permits.

Call us at +971 4 824 9940 right away. Additionally, you can reach us on WhatsApp at +971 52 420 0436. Send us an email at info@eaglewingsuae.com with your question.