How to Start a Cloud Kitchen Business - License Cost & Profitability

Welcome to the world of cloud kitchens - a low-cost, high profit margin food business model that’s taking over Dubai’s fast-growing delivery scene.

And let us tell you - this is not a future trend. This is happening now.

Did you know? Starting a cloud kitchen in Dubai is now easier than ever - you don’t need to build a kitchen from scratch. Fully equipped, ready-to-use cloud kitchens are already available across the city. Just choose your location, move in, and you’re ready to start cooking. Isn’t that incredibly convenient?

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With Dubai’s population booming and new residential communities springing up across the city, the demand for fast, tasty, and conveniently delivered food is rising every single day. From solo entrepreneurs to big food brands, everyone’s entering the cloud kitchen space - and the business opportunity is wide open for you too.

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If you're a chef, a food entrepreneur, or just someone with a great menu concept - this is your chance to serve thousands of people without renting tables, managing floor staff, or paying for a huge dine-in space. Sounds smart, right?

And the best part? You don’t even need to build a cloud kitchen yourself. Ready-to-go, fully licensed cloud kitchens are already available in Dubai. All you have to do is plug in your brand, register your business, get your app menu live - and you’re in business.

Let’s walk through this entire model of how to open a cloud kitchen, step by step - in the COFTT way - simple, clear, and focused on helping you succeed.

Why Cloud Kitchens Are Exploding in Dubai Right Now

Here’s what’s happening in Dubai right now - the population is growing, new communities are rising, and the demand for convenient food delivery is at an all-time high. Apps like Talabat, Noon, Deliveroo, and Careem Eats have become the go-to choice for residents looking to order everything from biryani to vegan bowls - all from their phones.

Did you know that more than 70% of food orders in Dubai now happen online? And by 2025, the UAE’s food delivery market is expected to cross AED 13 billion in revenue.

This is not just a shift - it’s a revolution.
And cloud kitchens are leading the way.

What makes it amazing is this - you don’t need a 2000 sqft dining hall, fancy lighting, or a beachfront location. What you really need is a smart kitchen, a solid menu, a well-placed kitchen location, and visibility on the top food delivery apps.

You Don’t Need to Build a Kitchen - It’s Already Ready for You

One of the smartest aspects of the cloud kitchen model in Dubai is that you don’t need to build your kitchen from scratch.

Yes, you heard that right.

There are fully built, ready-to-operate cloud kitchens available for lease in popular areas like Business Bay, Dubai Marina, Downtown Dubai, Barsha, and Al Quoz. These kitchens are approved by Dubai Municipality, fitted with proper drainage, ventilation, safety equipment, and even cleaning zones.

You walk in with your ingredients, hire a cook (if needed), and you can be live on Talabat within days.

Isn’t this a game-changing way to enter the food business?

Instead of spending AED 300,000+ setting up a restaurant, you can get started with a kitchen lease starting from AED 40,000/month, depending on size and location.

The Power of Location - You Only Reach Who's Near You

Let’s talk about one of the most important details in cloud kitchen business - location is everything.

In traditional restaurants, location mattered for foot traffic. But in cloud kitchens, it matters for delivery radius.

Most food delivery apps work on a 4–5 km radius model. That means if your kitchen is in Al Quoz, your menu will mostly show up to customers within Al Quoz, Al Safa, and Al Barsha.

So, think about this: who do you want to feed? Office workers in Business Bay? Tourists in Downtown? Residents in JVC?

This is why choosing the right location is crucial to your cloud kitchen’s success. Put your kitchen in the wrong spot, and your orders will stay low no matter how tasty your food is.

Isn’t that a decision worth getting right the first time?

Do Market Research Before You Launch – Let COFTT Help

This brings us to something most new food entrepreneurs skip - market research. And believe us, skipping this is like cooking without knowing who’s eating.

You need to know:

a. What cuisines are trending in your target area?
b. What’s the average basket size of delivery customers nearby?
c. Are there already 12 burger brands fighting for space - or is there room for a new health bowl concept?

Which apps work best in that zone?

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At COFTT, we offer detailed F&B market research services - not just basic reports, but deep analysis of what sells, what doesn’t, and what can give you a real chance to grow. We help you find gaps in the delivery space and build your brand accordingly.

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Because cooking is an art. But launching a food business in Dubai? That’s a strategy - and it needs data.

Step-by-Step: How to Start a Cloud Kitchen in Dubai

Let’s now walk you through how you can launch your own cloud kitchen from scratch - using ready-made infrastructure and the support that Dubai already offers.

1. Register Your Business in Dubai Mainland

First, you need to get a restaurant license from the Dubai Economic Department (DED). The business activity you choose will depend on your food concept, but it generally falls under “Food Preparation and Delivery Services” .

You’ll need to:

a. Reserve a trade name
b. Finalize your business structure (sole, civil company, LLC)
c. Get your tenancy contract
d. Apply for licensing

If you want help with this process, we’ve written a full article that walks you through every step of opening a company in Dubai.

2. Rent a Ready-Made Cloud Kitchen

Once your license is in motion, it’s time to secure your cloud kitchen unit. You don’t need a massive kitchen - even a small 400 sqft unit can do wonders if set up correctly.

Spaces are available on monthly contracts or yearly leases, and they often come fully furnished with everything you need - cooking stations, cleaning areas, cold storage, and even common pickup counters for delivery drivers.

The best part? These kitchens are already approved by Dubai Municipality, so once you sign the tenancy, you’re ready to proceed with legal finalization.

3. Finalize Legal Formalities

Because you’re renting a pre-approved kitchen, you won’t need to deal with complicated permits. You just need:

A valid tenancy contract
Food safety compliance confirmation (often already covered)
Civil defense clearance (usually included by the facility provider)

Isn’t that a massive time saver compared to starting from scratch?

4. Register on Food Delivery Apps

Your kitchen is set, your license is approved - now it’s time to go where the customers are.

You’ll need to register on platforms like:

a. Talabat
b. Noon Food
c. Deliveroo
d. Careem Eats

Each app has a partner onboarding process where you submit your license, menu, kitchen address, and payment details. Once you’re verified, your restaurant goes live.

From there - it’s all about orders, reviews, and reputation.

Set Up Your Online Menu and Optimize for Conversions

Don’t overwhelm customers with 100 dishes. Start focused. Offer 5–10 core items. Think of combos, meal deals, and visuals. Use real images. Keep names clear and catchy.

Want an example?

Instead of “Grilled Chicken Bowl with Mixed Leaves and Tofu Lemon Dressing,” try:

“Power Chicken Bowl – Grilled & Loaded”

See the difference? Presentation sells as much as taste.

Launch Promotions and Watch Your Orders Grow

All delivery apps let you run paid promotions - and they work. Offer free delivery on first orders. Give a combo meal for AED 29. Celebrate weekends with a 20% discount.

Track what works. Adjust. Grow.

And most importantly - always deliver on time, with quality. That’s how you build loyalty, and that’s how your cloud kitchen becomes a brand people return to every week.

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Starting a restaurant the old way is expensive, risky, and slow. But with cloud kitchens, you can launch a food business faster, cheaper, and smarter - without giving up on quality or scalability.

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This is not a shortcut. This is the new model.

You don’t need to guess. You don’t need to spend AED 500,000 on interiors. You just need a smart idea, the right kitchen, a strong menu, and app visibility.

At COFTT, we’re here to help you build that vision. From market research to company registration, cloud kitchen scouting, legal setup, and launch support - we help you start your brand the right way.

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So tell us - are you ready to cook up success in Dubai’s most exciting food business model? Let COFTT guide you from idea to launch - and let’s build your cloud kitchen business together. Contact us Today!