The food business is flourishing in the UAE. And ever since the covid outbreak, the online food business has grown rapidly. In fact, cloud kitchen in Dubai is making more profits than traditional Dine-Ins. Therefore, food chain operators and restaurateurs are prioritizing cloud kitchen models due to the shifting customer needs and increased revenue.
A cloud kitchen, also known as a dark kitchen or ghost kitchen, is basically a delivery-only restaurant format. It simply means it takes only online orders via different means, such as telephone, websites, third-party platforms, and mobile applications.
The rise of e-commerce paved the way for cloud kitchens in UAE’s market and started gaining customers’ attention like never before. Furthermore, it is also projected to grow in the coming years. So, if you are new to the online food business and wish to open a cloud kitchen in Dubai, then you must check out this article to know the setup, cost, benefits, and other significant aspects of a cloud kitchen.
Benefits of setting up cloud kitchen in Dubai
Setting up a cloud kitchen in Dubai comes with a wide-ranging set of advantages.
- Less overhead
- Lesser risks
- Flexibility
- Able to expand
- Better efficiency
- Minimal infrastructure
- Easy to manage
- Greater opportunities
How to set up a cloud kitchen in Dubai?
Given is the step-by-step process to set up a cloud kitchen in Dubai -
- Select a location
You do not need a premium location for your cloud kitchen setup as it is a virtual setup and most of your activities would be conducted online. Instead, minimal space is sufficient for your business. You can go for a variety of locations such as unused parking lots, market backsides, residential areas, etc. However, make sure to check whether the chosen area can bring in customer demand. You can also consider shared kitchens to cut down costs.
- Choose a trading name
Before starting any business, you must decide a name for it. However, also ensure to follow the naming ethics to avoid any legal consequences. All you need to do is find a unique, attractive, and easily identifiable name, and submit it to the respective officials for further verification and approval.
- Finalize equipment and food packing
The selection of kitchen equipment depends on the dishes you would be serving. However, there are some essential utensils and kitchen tools you would require for your day-to-day activities, such as cutting knives, refrigerators, ovens, microwaves, etc.
Secondly, the success and reputation of a food business also depend on the packaging of food. No matter what quality food you serve or how impressed your customers are, if the food is not packed properly, it will for sure ruin the customers’ experience as well as your business ratings. So, on the whole, you need to serve quality food, and in great packaging as well.
- Get a trade license and register the cloud kitchen business
When you decide on the location, you need to determine whether you want to operate on the mainland or any free zone. This would further help you to apply for your trade license. The regulating authority of the chosen jurisdiction deals with the licensing process. So, you either need to apply for the trade license to the DED or the free zone authorities accordingly as well as register your cloud kitchen setup.
- Obtain other necessary licenses and permits – Food Licenses
A food license is a compulsion when you are starting a food business. Dubai Municipality is the issuing authority of the food license. The applicant needs to submit some necessary documents to get the license.
Other than the food license, the cloud kitchen owners also need to follow Dubai’s food code and pass a food safety inspection. The inspection is conducted by the food safety department of Dubai which oversees the necessary regulatory requirements of the food sector. This includes training the owner and staff in food safety procedures. In addition, your kitchen needs to be in order abiding by all the requirements set by the authorities. Once the authorities are satisfied with the inspection, they will issue the food license for your business.
Also read the post: Start Your Consulting Business in the UAE
- Get insurance for your business
Insurance helps protect your business from any uncertainties that may arise. The various kinds of insurance for the cloud kitchen model may include Property insurance, Liability insurance, Product liability insurance, Workers’ compensation insurance, etc.
- Open a bank account for your kitchen business
It is always advisable and also practical to always keep your personal and professional finances separate. Therefore, remember to open a separate corporate account only for your business transactions. This makes it easier to prepare taxes at the year's end.
- Hire employees
A cloud restaurant doesn’t require front-of-house operations. Hence, you do not need to invest much in recruitment. You just need a handful of employees to open your cloud kitchen. However, you can hire more as your business expands.
- Find a food delivery service
Since your business is delivery-only, you will need a food delivery service to deliver food to your customers. You can go for several options such as using your own staff for delivery, partnering with a delivery service provider, or starting a takeaway format. This way you can operate your cloud kitchen easily, however, make sure to do your research beforehand.
- Consider other details
When it comes to the food business, it is important to focus on some key details, such as understanding your target audience, the food you want to offer, modes of delivery, etc. Other important areas to cover may include the following:
- What would be the starting price of the food on your menu?
- What kind of food would you be serving – meals, snacks, desserts, or any other?
- What would be the USP of your business? Any specific cuisine or ingredient?
- What are the modes of order placement?
- Would you serve beverages such as alcohol and other hard drinks?
If you work on all the details, it will tend to improve your customer experience and increase your brand image in the market.
- Promote your business online
To achieve maximum success, marketing is the pillar. Cloud kitchens and virtual restaurants mostly rely on online or telephonic orders. Therefore, it is crucial to try and work on your marketing and promotional skills. Adopt a unique strategy, follow your competitors and study their marketing competencies, and think from a customer viewpoint. Also, make sure to start the marketing process before setting up your cloud kitchen in Dubai.
Additionally, there are several ways to market your food brand. For instance
- List your cloud kitchen on online aggregators and market it
- Social media marketing
- Search Engine Optimization
- Loyalty programs and direct marketing via emails and SMS
Technical requirements for cloud kitchen in Dubai
Strong Inventory Management System
- Integrated ordering system
- Calling services for telephonic orders
- Online order placement system via Website or Mobile Apps
- Centralized delivery system
- Integrated Kitchen display structure
Cloud kitchen setup cost in Dubai
The cloud kitchen setup cost as well as the operational cost depends on a number of factors. The most significant ones include investments, size of the company, maintenance costs, location, number of employees, menu creation, government procedures, etc.
For more detailed and customized cloud kitchen setup cost in Dubai, speak with the representatives of Shuraa.
Virtual business models are currently on a rise. So, it's time to get started with your cloud kitchen in Dubai. Get your trusted advisor at Shuraa Business Setup. They can help you with the entire process of setting up your ghost restaurant in the UAE.
So, contact the team Shuraa at +971 44081900.
