Café Diana, the west London establishment cherished by the late Princess of Wales, faces potential closure following accusations of employing illegal migrants and paying staff in food rather than wages.
The Home Office has applied for a licence review of the café near Kensington Palace, with a hearing scheduled for Thursday before the Royal Borough of Kensington and Chelsea's licensing committee.
Council inspectors reported that seven illegal employees from countries including Egypt and Albania were discovered working at the premises between September 2019 and December 2024, raising serious concerns about labour exploitation at the business Diana once frequented with her sons.
Some of these workers told inspectors they were "paid in food" rather than money, according to a report published by Kensington and Chelsea council, which stated this "raises concerns about labour exploitation taking place at the premises".
Princess Diana’s beloved café under threat after 'hiring illegal migrant workers'.
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The business also faces allegations that customers were found smoking shisha in the basement area in May this year. Officers seized 45 unlabelled tubs of shisha tobacco during the raid.
Owner Abdul-Basit Daoudr Daoud told officers he oversaw recruitment and checked workers' immigration status.
He acknowledged that staff were paid in cash and admitted some received free food in exchange for working at the café.
Diana and her sons, Prince William and Prince Harry, became regulars at the café after she made her first visit within days of its opening in 1989.
Café Diana was frequented by the late Princess as well as William and Harry.
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"She started coming more often, bringing the kids here sometimes for breakfast. The kids used to take breakfast, like English breakfast. Herself, she used to have cappuccino, cake, some croissants, something like this. But she sometimes had English breakfast too," Daoud recalled after her death, according to The Times.
Shortly before her death in 1997, the princess sent a letter to the owner stating: "I wanted to write personally, to thank you so very much for the beautiful flowers you sent for my birthday."
The café now displays dozens of photographs of the princess on its walls, including one given by Diana as a present, and has become a popular tourist destination.
The council report stated: "Café Diana has been found employing illegal workers. This business has clearly failed to meet the prevention of crime and disorder and public safety objectives."
Café Diana is filled with pictures of the late Princess Diana.
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Café Diana celebrated the engagement of William and Kate in 2010.
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The company running the café was previously ordered to pay a £135,000 civil penalty in April after being found to have illegally employed three migrants.
In a letter to the council, lawyers for Café Diana's owners said: "Immediately upon becoming aware of the reported issues, the licensee took swift and decisive action to evict the tenant responsible for the unauthorised activities."
The café has proposed a three-month suspension during which it would ensure right-to-work immigration checks are conducted for all staff members.
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