How to Start a Cloud Kitchen in Dubai, UAE

The food market of Dubai is booming due to the growing consumer preference for online food delivery. The revolution of the cloud kitchen Dubai is taking the food industry by storm. Customers can order their preferred dish in no time, just with a single click. Not only is it a low-risk business idea, but it also helps business owners reap high profits. They can simply operate a cloud kitchen in Dubai cost-effectively without any storefront or dining facilities, rather providing quality food through various digital platforms. At the present time, even traditional dining restaurants are adopting the cloud kitchen model, facilitating customers with the food they want at their doorstep.

1. IN DUBAI UAE
HOW TO START A CLOUD KITCHENHOW TO START A CLOUD KITCHEN

2. The food market of Dubai is booming due to the growing consumer
preference for online food delivery. The revolution of the cloud
kitchen Dubai is taking the food industry by storm. Customers can
order their preferred dish in no time, just with a single click. Not only
is it a low-risk business idea, but it also helps business owners reap
high profits. They can simply operate a cloud kitchen in Dubai cost-
effectively without any storefront or dining facilities, rather providing
quality food through various digital platforms.
At the present time, even traditional dining restaurants are adopting
the cloud kitchen model, facilitating customers with the food they
want at their doorstep.
This comprehensive guide will cover all essential details about the
cloud kitchen Dubai, its gaining popularity worldwide, the setup
requirements and procedures, the cloud kitchen setup cost in Dubai,
and the key points to remember while securing a cloud kitchen
license Dubai.

3. What is a
A cloud kitchen is basically a virtual kitchen, also known as a ghost kitchen,
that takes consumer orders from various digital platforms, including online
portals and mobile apps. It is a professional food preparation and cooking
facility set up that solely focuses on online delivery of meals. This means it
does not have a traditional restaurant setting, such as dining facilities,
storefront, overstaffing, etc.
CLOUD KITCHEN IN DUBAI
The core objective behind a Dubai cloud kitchen is to reduce overheads such
as kitchen rent, staff salary, etc., thus enhancing profit margins for business
owners. Besides, a single kitchen can take multiple orders from different
brands or consumers simultaneously.

4. The Rising Popularity of the
The increasing demand for food delivery services has led to a surge in the popularity of cloud
kitchens in Dubai. In the wake of the COVID-19 pandemic, these virtual establishments have become
the perfect solution for convenient and contactless dining.
CLOUD KITCHEN BUSINESS IN DUBAI
Over 400 cloud kitchens are currently operating in Dubai, offering a reliable option for entrepreneurs
and investors to explore their culinary ideas at minimal costs. Moreover, the city offers the perfect
infrastructure and business atmosphere to conveniently start and run a cloud kitchen business.
Lower overheads – Require smaller spaces, without any decor, and lower staffing needs.
Flexible menus – Quickly adapts to food trends and consumer demands.
Scalability – Straightforward business expansion, allowing quick and flexible growth.
Access to a huge delivery market – Partnership with food aggregator apps to reach a large
market.
With the rising demand and growing usage of digital platforms, cloud kitchens are gradually
transforming into a profitable and scalable business model, expecting a revenue of USD 8.9 billion by
2025. However, there are certain fundamentals business owners must keep in mind to legalize this
business plan.
Approval from the Food Control Department of Dubai Municipality, confirming the food quality,
production process, and high food standards.
Trade license from the relevant authority in the selected jurisdiction.
Food license from the Food Safety Department.

5. FEATURE
Primary Operation
Customer Interaction
Location
Operational Overheads
Brand Hosting
Marketing Strategy
Cost efficiency
CLOUD KITCHEN
Delivery/Takeout
No direct interaction with customers
Usually in low-rent areas or individual homes
Low
Relies mainly on digital marketing
Relies mainly on digital marketing
Higher profits
DINE-IN RESTAURANT
Dine-in/Delivery/ Takeout
Direct interaction with customers
Typically, at prime, high-traffic areas
High
Focuses on both walk-ins and
digital marketing
Focuses on both walk-ins and
digital marketing
Lesser profits compared to cloud
kitchens
Difference between a
CLOUD KITCHEN AND A TRADITIONAL DINING RESTAURANT
The table below outlines the clear difference between a traditional restaurant and a cloud kitchen Dubai:

6. Savings on infrastructure
Virtual kitchens or cloud kitchens are low-cost
startups with minimal restrictions on entry and
flexible menu options. Entrepreneurs do not need
to secure expensive space in posh areas; rather,
they can find a location that is near residential
townships and the inner parts of the city. Unlike
traditional dining eateries, cloud kitchens provide
the breathing space for business owners to take a
day off from the excess burden and costs.
ADVANTAGES OF
1.
Reputed restaurants can also consider expanding
their reach by starting a cloud kitchen Dubai and
catering to a broader audience segment that is
already their loyal customers. Once it gains
considerable recognition, the business owners can
set up multiple branches across the country and
expand their brand gradually.
Expansion opportunities
2.
A majority of the population in Dubai prefers
ordering food online. Businesses with an attractive
menu and quality food tend to receive more
orders from their permanent customers as well as
new customers who can access their menu on
digital platforms.
Large audience pool
3.
Easily manageable
Compared to a regular restaurant, cloud kitchens
have fewer tasks to take care of. All they need to
focus on is cooking delicious food and ensuring
timely delivery. Since the entire process is tech-
oriented, the chances of error are minimal,
enabling business owners to maintain composure
and stay stress-free.
4.
By following consumer trends, cloud kitchens can
improve their offerings. They can utilise technology
and analyse the data to gain valuable insights into
consumer preferences and behaviour. Based on
this data, they can modify their menu in
accordance with the customer’s liking and boost
their sales, customer satisfaction, and business.
Data-driven decision making
5.
Cloud kitchens mitigate the risks of financial instability. Not
only does it eliminate the need for a large operational
team, but it also reduces the setup cost in Dubai.
Moreover, they can quickly establish a loyal customer base
by offering quality food at reasonable prices. Furthermore,
if things don’t go as planned, it’s easy and economical to
shut down the business, compared to closing a dine-in
restaurant that involves massive investments.
Low risk, high profit
6.
A cloud kitchen Dubai license is a prime choice for new-age investors. Here’s why –
STARTING A CLOUD KITCHEN DUBAI

7. Hybrid Kitchens
1.
Ideal for delivery and takeaway.
Allow customers to order online or
provide takeaway facilities.
Example: A food joint operating
primarily through digital platforms like
Talabat & Deliveroo can also set up a
pickup counter for local customers.
Full-Stack Virtual
Kitchens2.
Best alternative for brands seeking
full control over food production,
customer relations, and quality
assurance.
From cooking and packaging to
marketing and order fulfilment,
everything is managed by the
business.
Example: A premium pizza joint can set
up an exclusive online restaurant where
it processes orders, handles customer
service, and delivers food through its
own fleet of riders.
Co-Working Cloud
Kitchens
3.
Ideal option for new food
entrepreneurs or businesses looking
to explore multiple ideas before
starting a separate kitchen.
A centralised commercial kitchen
space is shared by multiple brands,
which helps reduce overheads and
operational costs.
Example: A health food startup can
start a shared cloud kitchen with other
vendors to launch new menu ideas.
CHOOSING THE RIGHT KITCHEN BUSINESS
IN DUBAI: MOST COMMON OPTIONS
Through a Dubai cloud kitchen, one can easily enter the thriving food delivery market of the UAE. However, there
are multiple options available for this business model, each depending on specific business goals, budget, and
operational needs.

8. Design your business idea
1.
A successful business starts with a strong concept
and a comprehensive market analysis.
Market Research: Understand your target
audience, competition, and pricing strategies
through online surveys, focus groups, and
market studies.
Niche & Menu: Identify a high-demand cuisine
or niche, keeping delivery practicability in mind
Obtain a UAE Residency
Visa (For Non-Nationals)
2.
Non-UAE residents thinking of setting up a Dubai cloud kitchen
must secure a residency visa to legally reside and operate their
business.
Visa Application: Trade license is a requisite when applying
for a visa. Therefore, non-resident owners must ensure to
secure a trade license before undergoing the visa application
process.
Sponsorship: Sponsor your visa for easier processing and
assistance throughout the visa application.
Documentation: The necessary documents include
passport copies, business registration proof, and bank
statements.
Process: Submit your application and receive the residency
visa.
Choose a business
structure
3.
The right business structure impacts the ownership, taxation,
and operational flexibility of the business.
Mainland Setup
Administered by the Department of Economic Development
(DED).
Provides full access to local and international markets and
all major delivery platforms.
Limited Liability Company (LLC): Generally, full ownership
is allowed in most activities in a mainland setup. However,
certain sectors require a UAE national as a sponsor, who
legally holds 51% of the company shares, while the
remaining 49% is retained by the foreign owner.
Sole Establishment: Does not provide limited liability
protection, unlike LLCs.
Free Zone Setup
Overseen by a Free Zone Authority.
Offers 100% foreign ownership and potential tax benefits.
May require a distributor or a local service agent to deliver
food directly in the local market.
STEPS TO OBTAINING A
CLOUD KITCHEN LICENSE IN DUBAI
There are several strategic steps to set up an online food delivery business and secure a cloud kitchen license Dubai

9. Reserve and register your
trade name with the DED
4.
Trade Name Approval: Check the availability
of the selected trade name and register with
the relevant authority. Make sure it complies
with the business naming rules of the UAE
government.
Business Registration: Register the business
and obtain a license by submitting documents,
like passport copies, Emirates ID, and a
business plan.
Secure a Suitable Kitchen
Space
5.Secure a Commercial Location: Find a
location that is affordable and offers
unparalleled access to the target market. Look
for areas that have high demand for delivery
services.
Shared vs Private Kitchen: Try to get a shared
kitchen to reduce fit-out costs. Private kitchens,
on the other hand, offer full control; however,
they involve considerable capital investments.
Kitchen Fit-Out: Design your kitchen layout
and invest in high-quality kitchen equipment
for maximum efficiency and workflow. Apply for licenses and
permits
6.
Trade License: The primary license issued by
the DED or free zone authority.
Food Establishment License: Get a food
license from Dubai Municipality for food safety
compliance after passing a kitchen inspection
and adhering to food safety regulations.
Liquor License: Acquire a liquor license to
serve alcohol.
Additional Permits: Secure a Dubai Civil
Defense certification (fire safety), staff visas,
etc.
Make sure to stay compliant with labour laws and
keep up with the taxation laws, including VAT and
corporate tax.

10. Open a Corporate Bank
Account
7.
To manage your finances, transactions, and cash
flow efficiently, you need to open a corporate bank
account. Therefore, find a bank that offers services
tailored to your business needs.
Find your team, suppliers,
and equipment
8.
Staffing: Hire experienced staff for your
kitchen, such as chefs, prep staff, a kitchen
manager, and customer service staff, and
manage proper visas and work permits for
them.
Training: Organize training programs about
food handling, safety protocols, food
preparation, and packaging.
Payroll Setup: Implement a payroll system to
comply with the labour laws, including
enrollment in the Wages Protection System
(WPS).
Equipment: Invest in quality equipment, such
as commercial stoves, refrigerators, packaging
stations, and an efficient order management
system.
Supplier and Inventory Management: Find
reliable suppliers for your kitchen needs and
plan a well-organized inventory management
system for minimal wstage.
Secure Insurance Coverage
9.
Property Insurance: To protect the physical
assets of the kitchen from damage or loss.
Liability Insurance: To safeguard against legal
liabilities from accidents or injuries on the
property.
Product Liability Insurance: To cover risks
associated with food products.
Workers’ Compensation Insurance: To
protect employees from work-related injuries
or illnesses.

11. Market your business
10
.
Selection of Platforms: List your business, photos,
and menu details on digital platforms like Talabat,
Deliveroo, Zomato, etc. Use your own delivery staff
or allow take-out.
Branding: Create a strong brand identity to
distinguish your business from other similar brands.
Digital Marketing: Use various digital marketing
strategies to reach your target audience and build a
customer base.
Leverage Tech: Systematize order processing, track
inventory, and delivery times.
Integration with Your Systems: Use a centralized
platform to manage multiple delivery partners and
incorporate your order management system to
ensure smooth operation.
Launch your business
11
.
Soft Launch: Launch your business to gather
feedback and make necessary adjustments in your
operations before the official inauguration.
Grand Opening: Plan a grand opening of your
business to generate buzz and attract customers.
Increase visibility through social media.

12. COMPACLOUD KITCHEN SETUP COST
The cloud kitchen license cost in Dubai costs around AED 10,000 to
AED 28,000, depending on the jurisdiction (Mainland or Free zone),
activities, and additional approvals. However, the overall cloud kitchen
setup cost in Dubai will be determined based on factors like kitchen space
rent, equipment, technology, staff remuneration, and marketing.
IN DUBAI

13. Factors to consider while
Here are some key considerations to ensure the success of your
cloud kitchen business in Dubai:-
Menu and quality control: A well-designed menu and
consistent quality of food.
Delivery logistics: Speedy and efficient delivery; Partnering
with established delivery platforms; Building a delivery
network.
Location: A strategic location that easily covers delivery times
and the areas you can cater to.
Regulatory compliance: Adherence to all health, safety, and
food hygiene regulations.
STARTING A CLOUD KITCHEN DUBAI

14. CONCLUSION
Dubai’s growing demand for online food delivery services
creates excellent opportunities for starting cloud kitchen
ventures in Dubai. With low upfront expenses and
scalability, entrepreneurs can easily experiment with
different food concepts and set up a successful business in
a thriving food market, thereby meeting the needs of the
diverse population and strengthening the reputation of
Dubai as a progressive city.

15. SEEK PROFESSIONAL ASSISTANCE FROM
DUBIZ
From choosing a business location to securing the necessary
approvals from specific authorities, our industry experts will
help you set up your cloud kitchen Dubai without any worries.
With strategic planning and professional guidance, we will help
you tap into this thriving market and kick-start a successful
culinary venture in the heart of the Emirate.

16. [phone]
dubiz.co
[email protected]
Office number 2908, Al Manara Tower,
Business Bay Dubai.
CONTACT US