London's Iraqi-run Princess Diana cafe faces closure over illegal workers

Cafe Diana was raided seven times over five years and seven illegal workers found

An Iraqi-run cafe dedicated to Princess Diana is facing closure after it was found to have been illegally employing migrants.

Cafe Diana was opened in 1989 by the Iraqi-born entrepreneur Abdul Basit Daoud and is near the late princess’s residence, Kensington Palace. She became a regular customer, bringing her sons, princes William and Harry. Diana, who at the time was married to Prince Charles, could often be seen chatting with Mr Daoud and waiters.

“She started coming more often, bringing the kids here sometimes for breakfast,” Mr Daoud recalled following Diana’s death. “She used to have cappuccino, cake, some croissants. But she sometimes had an English breakfast too.”

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The Home Office’s Immigration Enforcement team found a total of seven illegal workers there from 2019 to last year, with one found there twice. The cafe was fined £135,000 ($185,000) for employing the Egyptian, Algerian and Albanian citizens, who had no legal right to work in the UK.

One of the Egyptians came to Britain on a six-month business visa in January 2015 but stayed on and claimed asylum. He claimed to have been working for “just under five months” and said his duties included “making burgers and just helping in the kitchen in return for food”, though he had also been caught working illegally during one of the previous raids.

Cafe Diana is near Kensingston Palace in London. Photo: The National

During a raid in 2020, one of the workers “sat down at a table attempting to disguise himself as a customer” when he was spotted by immigration officers. An Algerian worker claimed she had been employed at the cafe for only a day and said no checks had been carried out. She admitted to having paid €5,000 ($5,905) to obtain fake work identification.

The Home Office said in its report that “workers admitted to being compensated with food instead of monetary payment, which raises concerns about labour exploitation taking place at the premises”. It goes on to say that “it is clear to see that the premises licence holder along with management has failed to conduct mandatory employment checks in line with legal obligations to prevent illegal working”.

In an interview with immigration officers, Mr Daoud admitted to owning the property but claimed he had been leasing the business to another person, and was unable to provide contact details for them. He said he had arrived at the cafe a short time before the immigration officers to regain ownership of the property, as the person had not been keeping up with the payment of rent.

Princess Diana used to take her sons William and Harry to the cafe. Getty Images

Immigration Enforcement has asked Kensington and Chelsea Council to revoke Cafe Diana’s licence, which will be decided on Thursday.

In a letter to the council, the cafe’s solicitors said: “Our client is deeply regretting the circumstances that prompted this review and sincerely apologises for any inconvenience, disruption or concerns caused to the community, local authorities and stakeholders.

“Immediately upon becoming aware of the reported issues, our client undertook swift and decisive action by evicting the tenant responsible for the unauthorised activities, The Corporate Meeting and Event Service Ltd.

“This prompt response underscores our client's unwavering commitment to upholding licensing conditions and ensuring compliance with all regulatory requirements.” Mr Daoud has been approached for comment.