The food delivery market is growing and the online food delivery industry is predicted to reach $365 billion by 2030 globally. The food delivery sector has witnessed an annual 6% growth in the UAE and it is likely to continue for the next 5 years. That’s why many food service operators are planning to open cloud kitchens in Dubai.
Let’s understand the concept of a cloud kitchen quickly
See, a cloud kitchen sometimes known as a virtual restaurant, or ghost kitchen is a delivery-only restaurant format that does not come with any dine-in facility. Cloud kitchens basically take food orders via different online platforms or hotline numbers. These kitchens depend on online food service delivery partners such as UberEats, Deliveroo, etc to deliver large orders.
Why should you start a cloud kitchen in Dubai?
Setting up a business in Dubai or other emirates in the UAE should come from a proper business understanding. Setting up a cloud kitchen is one of the profitable business ideas. Ease of replicating and scaling kitchen operation, and affordable business set-up cost, are some of the great reasons that instil the zeal of starting a kitchen-based business in Dubai.
Let’s take a look at some of the compelling reasons to say a big yes to setting up a cloud kitchen in Dubai
Location and property
Cloud kitchens do not require a premium location or a wide space area. One can easily operate the kitchen function even from a 200-300 Sf space which significantly brings down the cost. You can set up your ghost kitchen in different locations to deliver food in different areas on time. Any kind of residential area, market backsides, or even unused parking lots can be utilised for this purpose.
Low overhead
Cloud kitchens have less overhead compared to any brick-and-mortar establishment. These kitchens require less space, less equipment and fewer costs related to any physical advertising. Moreover, there will be no need to have front staff. Even if you run multiple brands from one kitchen, the same chef can prepare the dishes. You can hire more chefs and increase the number of staff when your business starts generating good revenues.
Minimal Risk
If you want to experience a new business concept, cloud kitchen is one of them. Established franchises can also experience a new menu and check the public reaction before they introduce it to their restaurant.
Improved Efficiency
Cloud kitchen owners take orders online and via calls, and they are subject to preparing the food at the said time. These online delivery models compel them to operate the kitchen more efficiently.
A guide to set up a cloud kitchen in Dubai
Now that you have decided to set up a cloud kitchen in Dubai, you need to understand the rules or regulations set by the government, the business set-up process, the right type of licence, etc.
Choosing a Trade Name
The very first step will be choosing the name of your company that needs to be sent to the Department of Economic Development (DED). This name should be unique and should not be any previously used name.
Choosing the location
In UAE, you will have the choice to choose between the Mainland, offshore and Freezone areas in Dubai. Each of these jurisdictions has its own set of rules, regulations, or advantages.
Prepare for the licence
A food service business will need to acquire different types of licences to operate its business legally.
Trade Licence- With this licence, you will be allowed to run your business operation. You will need to arrange the necessary documentation and submit an application to the DED.
Food Licence- You’ll be subject to obtaining a food licence. The Food Safety Department of Dubai takes care of the food licence issues. You will be required to submit floor plans of your cloud kitchen premise, and note food storage areas, entrance, exits, windows, and equipment.
Resident Visa- Apart from these two types of licences, you will need a resident visa. For that, you must go through a medical exam. As a business owner, you’ll be able to sponsor visas for your employees, family members or friends.
Create your team- Next, you need to arrange your team of chefs, or necessary staff to effectively run your business.
Corporate Bank account opening- You need to open a corporate bank account to be able to send and receive money on a regular basis. You should contact and open a corporate account with a banking institution.
Meet the Experienced Business setup consultants at Probity Corporate Services provider (PCS)
Probity Corporate Services provider (PCS) is one of the premier business set-up companies that help entrepreneurs or business owners to set up their dream businesses in Dubai in compliance with the laws and regulations of the government.
Whether you want to set up a cloud kitchen or you have another business idea, our expert business setup consultants can always help.
