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How to open a restaurant or a cloud kitchen in Dubai

How to open a restaurant or a cloud kitchen in Dubai

How to open a restaurant or a cloud kitchen in Dubai


An influx of overseas workers has proven to be a boom for the food & beverages industry in Dubai. By 2030, the global online food delivery industry is expected to reach a staggering $365 billion. 


Naturally, the UAE, and Dubai specifically, will have a sizable chunk of that market share as the region is constantly multiplying its workforce of highly-skilled workers. With a proficient workforce, comes an elevated consumer capacity for luxury expenditures like fine dining, entertainment & cinema. To cater to the ever-growing demand, an excellent business opportunity has presented itself for entrepreneurs pertaining to the restaurant industry.


While a delivery-only restaurant is the ideal business setup for people looking for a low-risk, low-investment, and medium-profit enterprise, a full-fledged restaurant requires significantly higher investment but also provides a chance for an abundance of wealth if done right. 


Here is the check-list to keep in mind before starting a restaurant or a cloud kitchen in Dubai-


  1. Location and Property 


A major portion of the fixed costs in establishing a restaurant or a cloud kitchen is the rent paid for the venture. For a cloud kitchen, one can strategically rent a relatively cheaper place close to a residential area to save on costs and be in the vicinity of more clients. Whereas, for a restaurant the location is key as a highly popular commercial district will bring in higher footfall.


  1. Required Licenses


Receiving the appropriate licenses for opening a restaurant and a cloud kitchen is necessary. The main license required to run a cloud kitchen or a restaurant is a Trade License and Food License. The business owners have to make sure that the licensing is completely sorted before commencing operations.


  1. Staff


For any venture in the food and beverage industry, the staff is a key pillar that defines the success of the business enterprise. Recruiting a dedicated workforce that is ideal for the specific cuisine being sold at a restaurant is essential. A cloud kitchen can operate with fewer employees as there is no front-end workforce needed. Whereas, staffing needs to be a lot more meticulous for a full-fledged restaurant as the employees are the face of the enterprise.


  1. Managing online orders   


A cloud kitchen mainly relies on online orders for its business to operate, so it is of paramount importance that they choose the adequate online platform that provides the highest level of visibility to the enterprise. For both restaurants and cloud kitchens, it is important to keep an eye on online aggregators that provide a higher percentage of revenue per order.


  1. Social Media Marketing


There are multiple platforms where a business can promote its restaurant or cloud kitchen. Since there is a limited budget for every food & beverage enterprise, identifying your target audience and knowing which platform to highlight your business can be the major factor in driving sales and attracting new clients. Providing loyalty discounts to regular users, giving festive offers to promote consumption are key elements to keeping your restaurant relevant.


  1. Technology requirements


To streamline and control the orderly flow of orders in any restaurant or cloud kitchen, highly sophisticated software is needed. Every restaurant or cloud kitchen needs to arm itself with state-of-the-art restaurant management technology such as an Integrated Kitchen Display System, Integrated Delivery System for food delivery, centralized ordering system (with a POS), and a Call Center panel.