Harrods defends £1 cover charge as staff prepare to strike

Harrods has defended the introduction of a £1 ‘cover charge’ in its restaurants and cafes, which it claims is used to support the business.

 

The luxury department store charges the fee on top of the 12.5% service charge levied in its hospitality outlets.

 

The Caterer understands the cover charge was trialled in several Harrods restaurants to gain feedback from customers and staff.

 

Harrods has paid 100% of service charge to staff since January 2022 while the £1 cover fee goes to the business.

 

However, a report in The Guardian said some staff were concerned the extra charge could deter guests from paying service charge and have called for Harrods to scrap it or share the proceeds with team members.

 

It comes as over 100 staff at Harrods prepare to strike on 21 and 22 December as well as Boxing Day in a dispute over pay and working conditions.

 

A Harrods spokesperson said: “Like many restaurants in the UK where there is a high level of service, it is standard practice to include a cover charge. We want to keep our prices as competitive as possible, while maintaining the best levels of service to our customers. 

 

“The cover charge supports in providing the premium environments our restaurants are known for during peak periods of business. Harrods has paid 100% of all service charge to colleagues since January 2022, over two years before legislation was introduced which required all restaurants to do so.”

 

When are Harrods staff due to strike?

 

Some 176 members of the United Voices of the World (UVW) Union have voted for strike action at Harrods on some of the busiest retail days of the year.

 

They will strike from 8pm on Friday 20 December to 9:30pm on Sunday 22 December, and 12am on 26 December to 9:30pm on Thursday 26 December.

 

Their demands include a daily meal allowance for restaurants and kitchen workers, the introduction of an annual bonus and a guaranteed annual pay increases above RPI inflation.

 

Alice Howick, Harrods waiter and UVW member, said: “As one of the world’s leading luxury department stores, Harrods should be setting the standard for retail and hospitality workers. Instead, we are earning the living wage and denied basic benefits such as a food allowance and Christmas bonus – something which should be commonplace in a company accumulating millions of pounds in profit year on year.”

 

Harrods said it did not recognise UVW as a union and therefore did not engage with the organisation or its policies.

 

This is the second time Harrods’ workers have voted to strike this year, and it is UVW’s fifth campaign at the store.

 

A strike was averted in December 2021 after restaurant staff were given a pay rise of almost 25%.

 

A Harrods spokesperson added: “At Harrods we recognise the enormous contribution of our colleagues, particularly at busy trading periods such as Christmas. Those that have voted to strike, which amounts to 176 employees (approximately 10% of colleagues collectively in these specific affected areas), are a fractional minority of our workforce and we have contingency plans in place over the Christmas period to ensure our services are not disrupted by this planned action.

 

"We have ongoing, open communication directly with our colleagues and our recognised unions on pay and benefits. Most recently, we have been engaging with colleagues directly through Colleague Forums and have also held town halls on issues that we know are of importance to our colleagues. We are committed to working with our colleagues directly to address concerns, as we have been to date and continue our constructive relationship with our recognised unions on pay and benefits."