A favourite café of Princess Diana could be forced to close after it was accused of illegally hiring migrants, paying employees in only food, and allowing the unlawful smoking of shisha.
Café Diana, which was named in honour of the former Princess of Wales, could lose its licence, after the Home Office applied for a review, with a hearing set to take place on Thursday.
Diana and her sons, Prince William and Prince Harry, quickly became regulars at the café, which is near to Kensington Palace in west London, after she made her first visit within days of its opening in 1989.
Café owner, Abdul-Basit Daoudr Daoud, recalled the princess’s visits after her death. “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,” he said, according to The Times.
Shortly before she died in 1997, according to the paper, the princess sent a letter to him, reading: “I wanted to write personally, to thank you so very much for the beautiful flowers you sent for my birthday.”

Café Diana now has dozens of photographs of the princess plastered over its walls, including one given by Diana as a present, and has become a popular tourist spot.
But the business is facing the prospect of having its licence revoked after the Home Office said seven illegal employees were found working there between September 2019 and December 2024, who were from countries such as Egypt and Albania, according to a report published by inspectors from Kensington and Chelsea council.
In interviews, some of these workers claimed they were “paid in food” rather than money. Inspectors said this “raises concerns about labour exploitation taking place at the premises”, the report added.
It is also alleged that, in May this year, a number of customers were discovered smoking shisha in the basement area of the café. Officers seized 45 unlabelled tubs of shisha tobacco.
Mr Daoud told officers that he oversaw the recruitment process, including checking the right-to-work and immigration status of new employees. He said that members of staff were paid in cash, and admitted that some received free food in exchange for working at the café.

The 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.”
Previously, the company running the café was ordered to pay a £135,000 civil penalty in April after it was found to illegally be employing three migrants, according to the report.
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.”
In the report, the café has suggested that a three-month suspension could be implemented, during which time it said it would ensure right-to-work immigration checks are done for all members of staff.
A ruling will be made by the licensing committee of the Royal Borough of Kensington and Chelsea on Thursday.
The Independent has contacted Café Diana for comment.