The rise in demand for online food delivery in the last two years has resulted in the growth of cloud kitchens in Dubai. The landscape of business setup in Dubai post the Covid era looks perfectly aligned with the cloud kitchen concept, which is a space to cook, pack and deliver food without the need for a dining area or front-facing staff. As the online food delivery is pacing up, setting up a cloud kitchen business in Dubai mainland is one of the best options to generate profits.
However, investors need to understand the laws and regulations of company formation in Dubai to leverage the benefits of the business model. Business setup consultants in Dubai can help you to navigate such key regulations of company formation. Here is a list of everything you need to know about opening a cloud kitchen business in Dubai, especially its wide-ranging benefits.
Benefits of Starting a Cloud Kitchen Business in Dubai
Starting a cloud kitchen business in Dubai is more beneficial than a conventional dine-in restaurant in many ways. The assistance of business setup consultants in Dubai can help you to make the process easier. Some of the key benefits of the cloud kitchen business are detailed below:
Low Infrastructure Cost
The low barrier to entering the market is the key advantage of opening a cloud kitchen business in Dubai. You need not bother about renting and designing a costly premise in posh neighbourhoods to operate a virtual kitchen. Business owners can base their cloud kitchen company in a 250– 300 Sq ft location, which allows them to drastically cut the costs. Furthermore, you can reduce Startup costs if a shared cooking space is used.
Low Risk, High Reward
Cloud kitchen is the ideal business model for entrepreneurs seeking low-risk opportunities that offer high rewards. You need not recruit a substantial workforce and it doesn’t involve big overhead expenditures compared to a traditional dine-in restaurant. Unlike the physical restaurant, the foreclosure process of a cloud kitchen doesn’t involve any complicated steps.
A Broad Audience Base
In recent times, there was a sudden spurt in the number of UAE residents and citizens who wish to order food through mobile apps. You can partner with leading food delivery companies such as Talabat to reach a wide range of food lovers. Most physical restaurants have only a single menu to offer their customers but cloud kitchens can offer multiple menus to serve a diverse range of foodies. UAE’s cloud kitchen giant Kitopi recently revealed that they have 7,000 menu items that customers can order from.
Steps to Start a Cloud Kitchen Business in Dubai
To start a cloud kitchen company, you need to comply with all the relevant regulations of business setup in Dubai. If you are unaware of the laws of the land, it is advisable to apply for a cloud kitchen license through business setup consultants in Dubai. Here is a step by step guide to obtaining a cloud kitchen license in Dubai:
- Select a business name
- Choose a legal structure based on the number of shareholders
- Rent a suitable premise for the kitchen and get a tenancy (Ejari) contract from the landlord
- Get approval from the Food Safety Department at the Dubai Municipality
- Submit all the relevant documents to the Department of Economic Development
- Collect the license after relevant approvals
- Apply for visas
Checklist of Things Needed to Start a Cloud Kitchen in Dubai
Here is a complete checklist for starting a cloud kitchen company in Dubai:
1. Location & Property
You don’t need to rent a space in high-traffic locations. Even the residential areas can be used to operate your cloud kitchen business.
Only a few staff are required to run a cloud kitchen business in Dubai. You must ensure that your chef can cook multiple cuisines for different brands from a single kitchen
3. Kitchen Equipment & Packaging
The equipment for your cloud kitchen depends on the type of food you provide. Make sure to invest in industry-standard containers and boxes to guarantee safe food packing.
4. Generating Online Orders and Marketing
You may need to invest in online marketing and advertising as your chief mode of operation is online orders. Online marketing is essential to ensure brand visibility as you don’t have a physical presence.
Consult with the Best Business Setup Consultants in Dubai, UAE
Now is the best time to start a cloud kitchen business in Dubai as nearly two-thirds of the country’s population buy food through mobile apps. However, you need to carefully handle the regulations of business setup in Dubai to quickly obtain the relevant approvals and licenses. The process can be easily navigated if you apply through the best business setup consultants in Dubai such as Jitendra Business Consultants (JBC).
JBC has a team of highly skilled company setup experts in Dubai who can help you to deal with the UAE immigration and labour laws. We can guide you on the approvals and documentation associated with the process of business setup in Dubai mainland. Our consultants can assist you with key requirements such as visa processing and renewal, bank account opening, Ultimate Beneficial Ownership (UBO) rules, Economic Substance Regulations (ESR), and laws related to Anti-money Laundering (AML), UAE corporate tax, VAT etc.