3 men running their cloud kitchen in Dubai

Guide to Start a Cloud Kitchen in Dubai

by Jayati Gadamsetty 13, May 2024

Dubai, home to a large number of tourists from around the world, is known for its Food and Beverage (F&B) industry. Whether it is a traditional restaurant or a food truck, the industry is witnessing a rapid transformation.

In that regard, the cloud kitchen business is also expected to grow exponentially in the Emirate given the increase in availing online services. This blog will help you understand the cloud kitchen business in Dubai.

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What is a Cloud Kitchen?

A cloud kitchen, also known as a virtual restaurant is essentially a delivery-only restaurant which delivers food to you after an online order is placed. It can be placed through online food portals such as Talabat, Uber Eats, and Deliveroo. 

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Why Invest in a Cloud Kitchen Business?

Some of the reasons for venturing into the cloud kitchen business in Dubai include low setup and operational costs compared to traditional restaurants. It makes for a financially attractive investment as you don’t require a big team for cooking, cleaning and keeping track of the inventory. 

Moreover, you are not required to incur a heavy cost for setting up a restaurant in the Emirate. A cloud kitchen business enables you to create an online presence and cater to a huge client base across Dubai.

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Cloud Kitchen License in Dubai

To start operations from your cloud kitchen, you must secure certain visas and licenses from relevant authorities like the Department of Economic Development (DED) and the Food Safety Department of Dubai.

While DED will issue the trade license and residency visa, the food license can be availed for the Food Safety Department by submitting the necessary documents. 

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Documents Needed to Start a Cloud Kitchen Business

To incorporate your cloud kitchen in Dubai, you must submit certain documents to the relevant authorities. These include copies of the business plan, copies of shareholder passports and Emirates ID, details of the cloud kitchen, and details of your company name.

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How to Start a Cloud Kitchen Business in Dubai?

For setting up the cloud kitchen business in Dubai, you need to follow a process set up by the authorities. Read on to know about it -

  1. Select an appropriate business structure between a sole proprietorship and a Limited Liability Company in Dubai (LLC).
  2. Decide on a name for your cloud kitchen while considering the naming regulations put in place by the authorities.   
  3. Finalise a location in Dubai mainland to establish the cloud kitchen after considering factors such as space, rent, target audience, and parking.
  4. Apply for the necessary licenses and permits to start the business operations.
  5. Open a bank account to handle daily business transactions.
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Costs for Setting Up a Cloud Kitchen in Dubai

If you want to set up a cloud kitchen in Dubai, there are certain costs associated with it. You need to evaluate these costs and prepare a budget accordingly. These costs include the payable rent for the cloud kitchen in Dubai, the license fee, and the amount paid to staff as salaries. In addition to that, there are also variable costs for utensils, electricity, gas, and cooking supplies.

Establishing a cloud kitchen can turn out to be a very profitable business, given the enormous potential of the F&B industry in Dubai. Reach out to the experts at Commitbiz if you have made up your mind to start a cloud kitchen business. They will happily guide you through the process related to company formation and licensing.

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