These commercial kitchen spaces streamline operations, which allows them to scale higher by leveraging shared kitchen spaces and resources. With this setup, you can focus solely on food preparation and delivery, eliminating the need for dining spaces or front-house staff. It is a cost-effective business model that allows for operational freedom. It meets the convenience demands of people who are located in the urban areas of the city. Some cloud kitchens tie up with food delivery apps to have their products delivered.

Now that we know briefly about how a cloud kitchen functions, let’s cover some of the steps to starting a cloud kitchen in Dubai.

There are a few things to consider before you set up cloud kitchen in Dubai. From market research to obtaining the necessary licenses, this comprehensive guide will help you get cooking in no time.

1.Decide on the legal structure and jurisdiction of your business: The first step would be to determine the structure of your business. Choose from the following major structures:

• LLC
• Sole proprietorship
• Partnership
• Free zone or mainland companies

You can choose to set up a company in the free zone or mainland jurisdiction. Most foreign nationals prefer setting up their companies in the free zone jurisdictions because of the tax benefits and the 100% company ownership it provides.

2. Market Research: Decide the type of cuisine you want your kitchen to specialize in. You, as the kitchen owner or the chef, have the freedom to decide the same. Prepare a business plan that includes a business model, marketing strategy, financial projections, and risk assessments. Analyze what will make your kitchen stand out from the competition. Consider researching the target customer demographic to retain business.

3. Apply for the required licenses: When starting a cloud kitchen business in Dubai, you must obtain the necessary licenses according to the regulatory requirements. There are four types of licenses you must acquire to get your cloud kitchen running:

• Commercial License: To engage in the business of food sales, you must apply for a commercial license from the DET. You will be required to submit your business plan and adhere to any food-related regulations laid down by the regulatory authorities.
• Food License: Dubai Municipality’s Food Safety Department issues this license. Upon application, you will be subject to inspections that ensure that the kitchen adheres to food safety regulations.
• Trade License: To set up your cloud kitchen business, you must have a trade license and obtain a trade certificate. The business license will specify your business activity as food production and delivery.
• Liquor License: If your cloud kitchen wishes to sell alcohol or alcohol-infused products, then you must apply for a liquor license at the DET.

4. Choose a suitable location: It is important to find a suitable location for your cloud kitchen. It is recommended that you set up your business in a location that helps you deliver your products to the targeted delivery area.

5. Secure a lease agreement: Finding the ideal space to work from is essential to any business. It increases workflow and productivity. You could choose a rented or commercial space that can be converted into a commercial space. If you choose to lease or rent a space, obtain an Ejari certificate. The design of your space must comply with regulations set by authorities.

6. Kitchen Protocols: To maximize profitability and productivity, invest in high-quality kitchen equipment. The cloud kitchen must comply with health and safety standards. Ensure the kitchen has proper ventilation, fire safety equipment, and pest control measures. Regular deep cleaning is needed to ensure the food is being made in a hygienic environment. Provide staff training about the health and safety standards that they are expected to follow.

7. Collaborate with Food Delivery Applications: Choose to collaborate with food delivery partners such as Talabat, Careem (Uber Eats), Deliveroo, and more. Alternatively, you can hire staff for delivery. You can also make provisions for customers to come collect their food. Set up an integrated system so you can stay on top of all your deliveries or food orders.

8. Open a corporate bank and secure insurance: To manage your finances, transactions, and cash flow, you must open a bank account. Additionally, protecting your assets is vital to the longevity of your company. Secure the right insurance suited to the business's needs.

The following documents are crucial for securing your cloud kitchen license:

• Business plan copies
• Passport copies of the owner or shareholder.
• Visa copies of the owner or shareholder
• Selected trade names
• Lease agreement

There are many compelling advantages to setting up a cloud kitchen in Dubai. Below is an overview of the benefits of setting up a cloud kitchen:

• Cost-Effective Operations: Cloud kitchens significantly reduce operational costs as they eliminate the need for a favorable property, front-house staff to serve customers, dining areas, etc. Many people also choose to work in shared spaces. This helps reduce the cost of utilities, maintenance, and equipment.
• Scalability: It is easier for cloud kitchens to expand without significant capital investment. They don’t need dedicated real estate, but rather a commercial that can be leased.
• Flexibility: With this business model, you have the flexibility to choose how to run the kitchen. Businesses can introduce new dishes to the menu and test new concepts with minimal risk.
• Wider audience: When collaborating with food delivery partners such as Uber Eats, Zomato, and Talabat, you increase visibility among a broader audience. The customer data analytics you receive from delivery partners will help you understand customer preferences, such as what dishes sell out more, which helps the business optimize offerings.
• Efficient Operations: With Cloud Kitchen, you don't need to worry about elements such as restaurant maintenance. The focus is solely geared towards food preparation and delivery. Maintain an integrated order management system to track delivery, operational efficiency, and customer satisfaction.
• Large profitability margins: Cutting down overhead costs leads to higher profit margins when compared to traditional restaurants. Leverage digital marketing tools to advertise your brand effectively and retain customers.
• Improved customer experience: In this bustling economy, people prefer convenience more than anything. Cloud kitchens can cater to this demand by providing seamless services so that customers can enjoy meals in their comfort.

The cost to start a cloud kitchen can differ depending on the type of requirements the business needs. The costs typically range from AED 50,000 to AED 100,000.

Kiltons Business Setup Services is your reliable business partner to set up cloud kitchen in Dubai. Our team of experts provides comprehensive support in business planning, company formation, and trade licensing. We are well-versed in efficient and swift business.

Contact us today to achieve success in this competitive market.