Harrods said it introduced the fee to keep menu prices competitive and maintain a high level of service.
Luxury department store Harrods has introduced a mandatory £1 fee for diners in all its cafes and restaurants in London.
This is on top of an existing 12.5% service charge, which is optional.
An English breakfast tea, at a basic price of £6.25, will now cost £8.03 at Harrods Cafe – equivalent to €9.75.
“Like many restaurants in the UK where there is a high level of service, it is standard practice to include a cover charge,” Harrods told Euronews in an email.
“We want to keep our prices as competitive as possible, while maintaining the best levels of service to our customers. The cover charge supports us in providing the premium environments our restaurants are known for during peak periods of business.”
Christmas strikes
The announcement comes as more than 100 Harrods workers plan to strike over the Christmas period, linked to a dispute over pay and conditions.
Retail, restaurant, kitchen, and cleaning staff will walk out on the 21, 22 and 26 December.
The United Voices of the World union (UVW), which represents Harrods workers, noted that staff are seeking an annual pay increase above RPI inflation and a £500 Christmas bonus this year.
Workers are also calling for an end to the cover charge, or an initiative to distribute it entirely to employees working in restaurants and kitchens.
UVW said 95% of employees voted in favour of strike action.
Tip-sharing legislation
Harrods brought in the fee after a law was introduced in the UK in October, which ensures workers keep all tips given by customers.
If an employer retains any portion of the tip money, workers will be able to complain to an employment tribunal.
Harrods stressed that it has been paying “100% of all service charges to colleagues since January 2022, over two years before legislation was introduced which required all restaurants to do so”. The firm therefore suggested that the cover charge and the legislation were unrelated.
But there are fears in some quarters that the new cover charge could deter diners from paying tips.
Fayed allegations
The strikes also come at a difficult time for Harrods as the firm has been shaken by allegations against its former owner Mohamed Al Fayed.
Earlier this year, a number of former employees at the department store accused Fayed of sexual misconduct, brought to light in a BBC documentary.
Police now believe Fayed may have raped and abused at least 111 women and girls over nearly four decades.
Fayed died last year and no criminal charges were brought against him in his lifetime.
“We are utterly appalled by the allegations of abuse perpetrated by Mohamed Fayed,” said Harrods in a statement.
“These were the actions of an individual who was intent on abusing his power wherever he operated and we condemn them in the strongest terms.”
The store noted that victims had been failed at the time, although stressed that the firm had moved on since Fayed sold the company in 2010.
