Have you heard about cloud kitchens? You probably have, if you’re interested in starting one, you’re in the right place! A cloud kitchen is a food delivery only kitchen that does not have a dining area. You prepare delicious meals that are delivered through apps like Talabat. Setting up a cloud kitchen in Dubai requires approval from the Dubai Municipality, food safety training for staff and the right license from DED.
In this article, we’ll cover all the details and license requirements you need to know to start your cloud kitchen business in Dubai.
Cloud Kitchens: The Booming Trend in Dubai
Cloud kitchens are becoming super popular right now, and for good reason! With the rise of food delivery apps, more people are ordering food online instead of dining out. This trend means there are plenty of opportunities for new cloud kitchen businesses. By starting a cloud kitchen, you can tap into a growing market without the high costs of a traditional restaurant. It’s a smart way to reach more customers and grow your food business easily.
The UAE is known for its vibrant food scene, with restaurants and cafes scattered across the country. Leading the pack is Abu Dhabi, boasting over 8,881 dining spots. Dubai isn't far behind, with more than 8,726 options, while Sharjah offers 3,541 places to eat. On the other hand, Umm al-Quwain has the fewest restaurants and cafes, with just 564, followed by Fujairah with 1,096. This shows how diverse and spread out the food industry is across the UAE.
Why Start a Cloud Kitchen?
- Low Overhead Costs: No need to spend money on a fancy dining space. You can save money on rent and utilities.
- Flexibility: You can easily update your menu and try new dishes based on what customers like.
- Wide Reach: Partnering with food delivery apps like Talabat helps you reach customers all over Dubai.
- Scalability: Start small and expand your kitchen as your business grows without the hassle of opening multiple locations.
Basic Requirements for Setting Up a Cloud Kitchen
So, what do you need to start a cloud kitchen? Here are the basic requirements:
Kitchen Layout Approval from Dubai Municipality:
Your kitchen layout must be approved by the Dubai Municipality. This ensures your kitchen meets all safety and hygiene standards. Without this approval, you can’t legally operate your cloud kitchen. Now a days, you can lease ready-to-use cloud kitchens that make the setup even easier!
Food Safety Training and License:
All your staff need to complete food safety training. This training teaches them how to handle food safely and keep everything clean.
After training, you must get a food license from the Department of Food Safety. This license is necessary to legally run your kitchen.
Get a Trade License for Your Cloud Kitchen
Trade license is mandatory because it lets you officially run your business. With a mainland license, you can easily partner with food delivery apps and start reaching customers right away.
To get a trade license, you'll need to follow several important steps. First, you'll need to obtain initial approval from the relevant authorities. This is followed by drafting a detailed business plan that outlines your business objectives, target market, and operational plan.
You'll also need to choose a business name and ensure it complies with UAE naming conventions. After that, you'll submit all required documents, including your application form and copies of identification. Also, you'll pay the necessary fees and, upon approval, receive your trade license.
Each step is crucial to ensure your business operates legally and successfully in Dubai.
Steps to Start Cloud Kitchen Business
You need a mainland business license to operate your cloud kitchen in Dubai. This license allows you to conduct business legally and partner with food delivery apps.
Here’s a simple breakdown of everything you need to know to launch your cloud kitchen
1. Choose Your Trade Name
Start with a unique trade name that reflects your brand and get it approved by the Dubai Department of Economic Development (DED). Make sure the name aligns with Dubai’s trade name guidelines to get quick approval. You need to provide three trade name of your choice.
2. Get Initial Approval
Once your trade name is ready, you’ll need initial approval from the DED. With this, you’re ready to tackle the next crucial steps, including Dubai Municipality approval.
3. Rent a Cloud Kitchen
Time to pick your space! You have two options:
Ready-Made Cloud Kitchens: If you’re going for a fully-equipped, ready-to-use cloud kitchen, you’ll just need a lease contract.
Setting Up Your Own Kitchen: If you want to build your kitchen from scratch, you’ll need to work on interior and exterior setup to meet the standards and get Dubai Municipality approval.
4. Get Dubai Municipality Approval
With your kitchen space set, now is the time to apply for Dubai Municipality approval. This step ensures your kitchen follows all safety, hygiene, and operational guidelines in line with Dubai standards.
5. Prepare the MoA (Memorandum of Association)
Prepare the MoA to establish the terms of your business, outlining the partners, roles, and capital contributions. It’s a legal step to formalize your business.
6. Pay the Fees and Get Your License
Finally, pay the required fees to the DED, and you’ll receive your cloud kitchen license. Now, you’re officially set to operate!
Need Help?
With over 15 years of experience, CSPzone can streamline every step of your cloud kitchen setup, from trade name registration to obtaining municipality approval. Need a helping hand? We’re here to make your journey easy!
Cost of Cloud Kitchen License
Setting up a cloud kitchen in Dubai mainland typically costs around AED 12,000 for the license alone. This is the base cost and may vary slightly depending on current guidelines, so please contact us to confirm the latest pricing.
However, remember this only covers your license. You’ll also need to budget for other essentials like:
- Cloud kitchen space
- Employee visas and staff training
Additionally, there’s a 5% market fee on the rental space. For example, if your lease agreement is for AED 60,000, an extra AED 3,000 will be due when issuing your license.
With the right support and planning, your cloud kitchen can be up and running in no time. Reach out to CSPzone to make it happen!
Other Requirements & NOC
Health and Safety Permits:
Depending on how your kitchen is set up, you might need extra permits. These can include fire safety approvals and certifications for your ventilation system to make sure everything is safe.
No Objection Certificate (NOC):
If you’re using a shared kitchen space, you might need an NOC from the kitchen operator or landlord. This document proves you have permission to use the space for your cloud kitchen.
How Cloud Kitchen Business Operates
Imagine your cloud kitchen is all set up and ready to serve! Here’s how it works from start to finish. First, you’ll need to register your business on popular food delivery platforms like Talabat or Noon. These apps bring thousands of customers right to your virtual doorstep. To get on board on these apps, you’ll need a trade license and a bank account. Easy enough, right?
Once registered, it’s time to get your menu online! Either upload your carefully crafted menu or choose options that best fit your kitchen's vibe. Now, you’re officially visible to every user scrolling through Talabat and Noon. A customer will browse, get hungry, and place an order with you.
Here’s where the action starts. You’ll get an instant notification that someone’s ordered from your cloud kitchen! Just open the app, check the order details, and start cooking. As soon as the meal’s ready, a delivery partner swings by your kitchen, picks up the food, and takes it straight to your customer.
In this setup, you handle the cooking; the delivery apps handle the rest. It’s efficient, fast, and puts your food right in the hands of customers without marketing!
At CSPzone, we’ve guided countless businesses through the setup process, from obtaining trade licenses to navigating kitchen approvals. We’re here to help you every step of the way. If you’re ready to launch your cloud kitchen or need expert advice, reach out to us today, and let’s make your business a success!
