6 Benefits of Setting Up A Cloud Kitchen in Dubai

Currently, cloud kitchen or virtual kitchen has a popular demand in the UAE as food delivery is expected to have annual growth rate of 6% in the next 5 years. If you are wondering what is a cloud kitchen, here is the answer. For restaurant entrepreneurs, the cost of investment for setting up a full-fledged luxurious restaurant is quite high. However, in a cloud kitchen, they can get shared kitchen spaces with ultra-modern facilities at a minimal cost. Listed below are a few benefits of setting up a cloud kitchen in Dubai:

1. Save infrastructure and operational costs

The infrastructure cost for a brick-and-mortar restaurant in Dubai is quite high considering the rental costs in a prime location with high footfall. In cloud kitchen, one can avail shared kitchen spaces along with the option for modifying the kitchen unit as per requirements. Quite often FOH (front of house) labor cost takes up to 50% of the average restaurant’s monthly revenue. This can also be saved through cloud kitchens.

2. Expansion Opportunities

Once your brand is accepted by a wider audience, you can open multiple branches and expand it at a minimal risk.

3. Cuts down advertising costs

As cloud kitchen has an online business model, you will receive orders mostly from third-party food delivery apps. So, all you need is to put in some efforts for creating an attractive menu and exciting offers. Social media marketing will also prove beneficial for marketing your brand.

4. Higher profit margin

Cloud kitchens can leverage their profit margins for providing a better competitive pricing. They can price their menus more reasonably unlike traditional restaurants for building a loyal customer base.

5. Chances for experimentation

Cloud kitchen business model allows restaurants to experiment with multiple concepts without a high expansion budget. One can operate brands by making use of the same kitchen infrastructure and marketing platform.

6. Minimal Closing costs

Even if things do not work out properly as you have planned, business closure will also do not cost you much as expected. For traditional restaurants, closing the venture will lead to a major expense due to the massive investment involved.

If you are planning to set up a cloud kitchen in Dubai and is not sure about which location you should choose or have any query regarding the licenses required, Corpin Consultants can provide end-to-end assistance. Contact us at +971 55 843 2911 or info@corpinconsultants.com to know more.