Harrods hits diners with £1 charge on top of 12.5% service fee

Harrods has introduced a £1-a-head "cover charge" in its London cafes and restaurants, which staff say aims to raise profits by up to £1m after a government crackdown on companies taking a cut of tips.

- Sarah Butler

The department store, whose owners took a £180m dividend last year, charges diners a 12.5% service charge - all of which has gone to workers since 2022 - and the further £1 cover charge which the business keeps.

The fees mean that a cappuccino could cost £8.31, including a £1 cover charge and 81p service charge.

The charge has emerged as more than 100 staff prepare to strike on 21, 22 and 26 December over pay and conditions, including concerns about the distribution of customer fees in the restaurants.

Workers say they fear the cover charge, which was first trialled a year ago, will prompt diners to cancel paying the optional service charge, hitting their income. They want Harrods to either cancel the cover charge or share it among workers and to be more transparent with staff about how the levy is distributed.