According to food delivery statistics in the UAE, the food delivery sector is predicted to develop at a 6% annual rate over the next five years. Given the high rents, evolving client patterns, and low-profit margins of a typical restaurant, many foodservice companies in the UAE are increasingly changing to a more profitable online delivery model or cloud kitchen model. In this Write-up, Dhanguard will talk about setting up your Cloud Kitchen Business in UAE.
Brief Overview of the Cloud Kitchen Business
A cloud kitchen, also known as a virtual restaurant, ghost kitchen, or dark kitchen, is a delivery-only restaurant that does not provide dine-in service. Orders are accepted using internet channels such as websites, mobile apps, third-party platforms. The delivery-only restaurant-style mainly relies on online food for extensive online orders. As a result, collaboration with third-party platforms is critical.
A delivery-only restaurant is thought to be a low-risk, low-investment, high-profit strategy. Setting up a Cloud Kitchen is substantially less expensive than opening a typical restaurant. Furthermore, a cloud kitchen allows restaurateurs to experiment with different concepts and formats. It has given rise to a variety of food delivery business models, including multi-brand kitchen models, aggregator-managed cloud kitchens, co-working spaces, etc.
Starting a Cloud Kitchen Business in Dubai
Cloud kitchens are among the most profitable food business types due to their low start-up costs and simplicity of reproducing and growing operations. A cloud kitchen business requires one-third of the resources to launch because it does not need a storefront in a prominent location or front-of-house staff to serve consumers.
Here is a complete checklist for starting a cloud kitchen business in the UAE.
Property & Location
A prime location with high foot traffic is not required for a cloud kitchen. Instead, a cloud kitchen business can be run from a 250-300 Sq Ft location, considerably lowering the cost.
Ghost kitchens can be put up in various settings, including residential areas, new parking lots, and market backsides, as long as there is a high demand for them. Alternatively, operators might take advantage of shared cooking space to reduce their initial outlay.
Licenses
We obtain the required permits before launching a cloud kitchen, and accreditation is necessary. Having the correct permissions and licenses in place will keep you out of legal trouble.
Necessary licenses needed to start a cloud kitchen business in the UAE are a Trade License and a Food License. Before launching a meal delivery business, make sure you have these in place.
Kitchen Equipment and Packaging
The varieties of kitchen equipment you purchase for your kitchen are determined by the cuisine you serve. However, a cooking range, refrigerator, oven, cutting knives, and other necessary equipment are required to establish a cloud kitchen.
Another important aspect of having a food delivery business is how excellent the food is; improper packing will spoil the overall customer experience and harm your brand's reputation.
Staff
As there are no Front-of-House operations in a typical cloud kitchen business, you don't need a large number of people to run your cloud kitchen. You may quickly launch a cloud kitchen business with just a few staff. If you run many companies from the same kitchen, the same chef can prepare cuisine for all of them. It is best to start the firm with a small crew and expand as incoming orders grow.
Marketing and Generating Online Orders
Because a cloud kitchen only accepts online and telephone meal orders, you must invest extensively in marketing your food delivery business in the early days. Online marketing becomes crucial when there is no storefront, display boards, or signage to build brand remember.
These are the following points to consider while Marketing and Generating Online Orders
Register Cloud Kitchen with Online Food Aggregators
Because internet food aggregators are likely to be popular with your target audience, you should list your dark kitchen on these platforms. To make a registration inquiry, go to the aggregators' website.
Promoting Cloud Kitchen on Online Aggregators
Paid promotion is vital for any new restaurant business to generate business quickly. It is strongly advised that you promote your cloud kitchen on third-party online food aggregators. While these aggregators charge a higher percentage of order revenue, they provide your restaurant brand with more exposure. Consider investing in paid marketing to help promote your company.
Read More: How To Start A Food Delivery Service Business In The UAE?
Social Media Marketing
It is usually a good idea to start your cloud kitchen business with an emphasis on social media marketing. Create a page for your business on Facebook, Instagram, and Twitter, and make sure to upload appealing images of your food, promos, and so on. To connect with your audience, use relevant hashtags. Consider running sponsored social media ads to reach a larger audience and boost online orders.
Search Engine Optimization
When a customer looks for your online ordering website on Google, you must ensure that it ranks higher on the search engine pages. Use the correct keywords and phrases, and make sure you have a mobile-friendly, SEO-optimized website.
Loyalty Programs, SMS, and Email
When properly designed, loyalty programs and personalized SMS and email marketing have a high ROI. To keep customers loyal, send highly targeted SMS and email marketing based on their order history.
Technology
The importance of technology in improving the order administration of a cloud kitchen business is critical. An integrated online restaurant ordering system that takes online orders and speeds up operations is required for a virtual restaurant.
These are the technological requirements for launching your cloud kitchen business
Centralized Ordering System
Any cloud kitchen business needs to have a POS system that receives orders from multiple online food aggregators. Because your cloud kitchen should ideally be featured on numerous online meal ordering platforms, manually inputting order details into the POS system is inconvenient.
Integrated Kitchen Display System
An integrated Kitchen Display System is a must-have technological tool to optimize total order preparation time in a fast-paced cloud kitchen.
Robust Inventory Management System
A robust inventory management system is required for a cloud kitchen to manage stock-in-hand and minimize food waste. A sophisticated inventory management system will allow you to track daily stock usage and alert you when more stock is required. It will also help you keep your food prices under control.
Conclusion
The cloud kitchen style provides restaurateurs with many choices while keeping operating expenses under control. The successful dynamics of ghost kitchens have resulted in the emergence of numerous spin-off enterprises. With more firms investing in the Dubai restaurant market, the cloud kitchen format is quickly becoming the most popular concept for starting a new business or scaling an existing one!