The concept of kitchen centers as a business is fairly new. With the food delivery business from online orders estimated to hit a $365 billion market globally by 2030, it is no wonder that many investors are looking for ‘just delivery’ options when it comes to catering food. The immense hike in demand for online food delivery during the COVID-19 pandemic times had opened up a huge opportunity for kitchen centers. And the Department of Economic Development had launched a professional license to open Kitchen Centers for businessmen who wants to tap into this lucrative chance.
A Kitchen Center license holder will be able to set up complexes with all the necessary equipment and utilities to run a food production outlet that can be rented out on a shared basis.
Following are the benefits of forming your Kitchen Center Business in Dubai:
- In 2020 about 92.05 % of Dubai’s population comprised of expats (as per https://www.dsc.gov.ae ) and more than 200 nationalities reside in this international city. Most of these professional young individuals depend on online food delivery for their day to day needs. As the opportunity for such businesses grow, so increases the scope for Kitchen Centers to fare extremely well.
- The starting investment for setting up an online food delivery business by just having the food production unit is extremely low compared to the starting cost required to set –up a restaurant, even if it is a small one. So many businessmen are opting to rent spaces in Kitchen Centers thus making this a very profitable business.
- Renting a space in a kitchen center is most cost-effective and it saves a lot of operational costs. Running a full-fledged dine-in and reservation restaurant requires a huge amount to begin with. So Kitchen Centers are very sought after in current day.
- Given the easy ‘Plug and play’ model of Kitchen Centers it only takes 2 to 4 weeks to start an online food delivery business. Thus many are choosing this instead of wasting almost a year or more to set up a traditional restaurant to enter the food market. This enhances the demand for Kitchen Centers.
- Online Food Delivery businesses operating from Kitchen Centers also save a lot of money when it comes to number of employees required to run such an establishment as opposed to a dine-in restaurant.
- Kitchen Centers are also being sought after now as it gives an online food delivery business the flexibility to scale up or down with ease as per how the business is evolving. The attraction of no relocation or moving costs adds to the appeal of Kitchen Centers.
- Traditional dine-in restaurants have limited number of customers because of their limited number of tables. Online food delivery establishments can cater to a huge clientele in a less amount of time thus making the business very profitable. For this very reason these companies opt for renting Kitchen Centers.
- Because the cost involved in running an online food delivery operation from a Kitchen Center is so low, it is low risk to experiment with new concepts. This advantage is not there for traditional restaurants.
These reasons make Kitchen Centers an easy to start and a growing business in Dubai. The required professional license can be acquired from DED.
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