Why a Cloud Kitchen Business in the UAE is the Right Choice for You
Cloud kitchens are on the rise in the UAE, and for good reason. They offer entrepreneurs a viable business model that can be tailored to fit any specific needs or requirements.
The food delivery and takeaway market - growing at a rate of 6% annually - propelled by mobile Internet and proliferance of third-party platforms in the UAE, has made this a great business for culinary enthusiasts with an entrepreneurial drive. If you're thinking of starting a cloud kitchen in the UAE, there are a few things you need to know in order to make your business a success.
In this post, we'll cover everything you need to know about starting and running a successful cloud kitchen business in the UAE. From permits and licenses to choosing the right location and partnering with the right third party food delivery platform, we've got you covered. So, if you're ready to jump into the world of cloud kitchens, read on!
What is a Cloud Kitchen?
A cloud kitchen is a commercial kitchen that's operated remotely. It's a great option for restaurateurs, professional chefs or even home bakers who want to open a new restaurant
without having to worry about getting a physical space or hiring staff for front-office operations or food service.
All the restaurateur needs is a laptop and an internet connection. From there, they can manage their kitchen remotely, overseeing everything from food orders to inventory. A cloud kitchen is a restaurant kitchen that only accepts delivery orders and does not have a dining area. Many restaurants have adopted this new business model known as "cloud kitchens," also known as "dark kitchens" or "ghost kitchens."
Cloud kitchens are becoming increasingly popular in the UAE, as more and more people are realizing the potential for success that they offer with their low set-up costs, and ease of scaling operations.
Are Cloud Kitchens Popular in the UAE?
Cloud kitchens are becoming increasingly popular in the UAE. According to a survey conducted by Statista, revenue from food deliveries and cloud kitchens in the UAE is estimated to reach US$2.18bn in 2022 with an expected annual growth rate of 6.33% (CAGR 2022-2026), so there's definitely room for growth in this sector. Even better news is that the number of online food delivery users is expected to amount to 5.5m by 2026 with a user penetration rate of around 44.5% in 2022.
They are convenient for customers, as they can order food online and have it delivered to their door. And because cloud kitchens are run by independent contractors, you can be sure of a wide variety of cuisine options. With a large expat community, UAE has a cosmopolitan culture
and people like to try different cuisines here.
If you're thinking of starting a cloud kitchen business in the UAE, now is the time to do it!
How to Set Up Your Cloud Kitchen in the UAE
To start a cloud kitchen in UAE, you need a business bank account and valid trade license.Choose a good bank and submit a few options for the name of your business, company
structure, and lease agreement for the physical site of your warehouse. Cloud kitchens take food orders via different online platforms or hotline numbers.
This type of business is on the rise in the UAE, as it offers entrepreneurs an avenue to start their food business at a lower cost than traditional restaurants. And with the right planning and execution, your cloud kitchen can be a huge success.
What Type of Food to Serve in Your Cloud Kitchen
When it comes to food, you have a lot of options. But what you choose to serve in your cloud kitchen is going to be essential to your success. You might like to think about the types of food that are popular in the UAE, and then decide on a cuisine that you can specialize in.
As the UAE has a strong expat community the country has a cosmopolitan food culture. Apart from authentic ethnic cuisine, fusion cuisine too and even menus that cater to special diets like vegan, keto, and gluten-free are becoming increasingly popular.
You could also let your audience sample trial menus before you decide what will work in the market.Once you find your niche, you would be on the right track. Of course, you can always mix and match cuisines to create a unique menu that will appeal to your target audience. But whatever you do, make sure the food is high quality and affordable.
Tips for Marketing Your Cloud Kitchen in the UAE
When it comes to marketing your cloud kitchen in the UAE, there are a few things you need to keep in mind. For starters, cloud kitchens are based on a delivery-only business model and rely on orders coming via their own website or delivery apps. This means that you'll need to have a strong online presence, and your website should be easy to navigate and user-friendly.
The top food delivery platforms in the UAE are Talabat, Deliveroo, Careem Now, and Zomato.Partnering with these popular third-party platforms is a must if you want your restaurant brand to be discovered by the UAE population.
You should also encourage online reviews and partner with as many delivery apps as possible.Remember, high-traffic locations aren't necessary for cloud kitchens. In fact, they can be set up in residential areas or even vacant parking spaces. So don't let that hold you back!
Do You Need a Business License to Run a Cloud Kitchen in the UAE?
If you're looking to start a cloud kitchen business in the UAE, you'll need to familiarize yourself with the country's licensing requirements. In order to operate a cloud kitchen in the UAE, you must have a trade license and a food license. However, getting a food license can be more challenging, as it's not always easy to meet the regulatory requirements. For example, your kitchen may need to be inspected by a UAE jurisdiction to ensure that it meets health and safety standards.
If you are a restaurateur, one of the easiest and affordable options in the UAE would be the industrial kitchen license from UAQ Free Trade Zone. Getting an industrial kitchen license from UAQ Free Trade Zone is pretty straightforward; you can apply for one through our website or talk to one of our business setup experts.
Why do you Need a Warehouse for your Cloud Kitchen in the UAE?
When it comes to cloud kitchens, one of the most important things you need to think about is your space. You need a place where you can prepare food without any interference, and that's why warehouses are so popular among cloud kitchen owners.
In the UAE, warehouses are a lot more affordable than they are in other countries, and they offer a lot of benefits when it comes to setting up your kitchen. For starters, they have high ceilings, which gives you enough room to install all of your cooking equipment. They're also located in industrial complexes, which means you're close to other businesses that might be able to help you out with things like logistics and delivery.
And finally, warehouses are perfect for those who want to start a cloud kitchen business on a budget. They're cost-effective and they offer a lot of flexibility when it comes to design and layout.
Why UAQ Free Trade Zone is a Great Location for your Cloud Kitchen Business
Whether you target the niche requirements of the airline industry, educational establishments, healthcare, offices, or anywhere else, a good industrial kitchen needs the kind of space and transport infrastructure UAQ FTZ can provide.We provide an affordable industrial kitchen license and affordable warehouses and land leasing options with top-notch facilities that suit any size and type.
Located beside the state highway E 311(Mohammed Bin Zayed Road), UAE’s longest road, the UAQ Free Trade Zone offers significant logistic advantage as it enables food delivery fast and easy to any part of the UAE.
Conclusion
Cloud kitchens are a great opportunity for entrepreneurs in the UAE. With the right planning and execution, you can make your cloud kitchen business a success.
To get started, you'll need to obtain the necessary licenses and permits from the UAE government. You'll also need to find a suitable location for your kitchen and make sure you have the proper equipment and staff in place.
Once you're up and running, it's important to market your cloud kitchen business effectively and create a strong brand identity. By following these tips, you can create a successful cloud kitchen business in the UAE.
