Cloud kitchens in Dubai, UAE: how to open a business

Cloud kitchens in Dubai, UAE how to open a business - Makebiz

Considering the possibility of opening a restaurant business in the UAE, it is worth paying attention to the gaining popularity of cloud kitchens. Their second name is ghostly. All because this type of business is aimed at preparing dishes for delivery without the possibility of serving customers on the spot. Commercial kitchens are equipped rooms with chefs preparing customized meals for popular apps like Uber Eats and Zomato.

Compared to traditional restaurants, the modern model has several advantages:

  • reduced leased space: only the kitchen and technical areas are needed;
  • the staff is mainly represented only by chefs;
  • reduced overhead costs, e.g. for equipping the main customer lounges;
  • simplified scaling without large investments in a new location;
  • ready customer base from delivery platforms.

To build a successful business model, it is important to analyze the market, take into account culinary trends and food preferences of the local population.

All this will allow you to identify your target audience, select a unique selling proposition and determine pricing. When calculating the financial model, consider costs at all stages: registering the business, formalizing employees, equipping the premises, supplying products, marketing, etc. To understand licensing prices and select the right legal structure, it is worth consulting with experts in the field of consulting. 

The first step in setting up a company in the UAE will be to obtain prior approval from the regulator and select a business name. Only after this step you can apply for a license for the selected types of activities. For the successful completion of the main stage, it will remain to get the premises inspected by the Department of Food Safety for compliance with catering standards. The kitchen itself must also meet Dubai’s health and safety standards. This includes proper ventilation, fire-fighting equipment and pest control measures.

To operate a cloud kitchen, you need to enter into a partnership agreement with delivery platforms, and open a corporate account to accept payments in the company’s name. Separately, it is worth paying attention to the recruitment and training of staff, as well as their official registration and setting up the payment of salaries under the WPS system. Makebiz specialists will tell you more about this and other stages of registration, as well as the order of prices at a free consultation. Among the technical costs you should consider utilities, staff salaries, cleaning, marketing and insurance.

The marketing strategy should include thoughtful visual branding, advertising in social networks, cooperation with bloggers and brands, development of a loyalty program, encouraging customers to leave positive feedback, participation in culinary festivals, etc. 

Cloud kitchens are a promising and growing trend. In 2023, this market in the UAE was valued at AED 1 billion and annual gross revenue of AED 2.53 million. This is quite a flexible type of culinary business: you have the opportunity to collaborate with different brands, test different formats, and cook dishes from different cuisines of the world. 

Sign up for a free consultation and find out how to open a culinary business or cloud kitchen in Dubai. 

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