Harrods adding £1 ‘cover charge’ to every diner on top of 12.5% service fee

The charges mean that a cappuccino could cost £8.31, including a £1 cover charge and 81p service charge. Photograph: Sophia Evans/The Observer

Harrods has introduced a £1 a diner “cover charge” in all its restaurants and cafes in London which staff say aims to bump up profits by up to £1m after a government crackdown on companies taking a cut of tips.

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