Karen's Diner where staff are intentionally rude to customers to close its last UK restaurant after chain battled drug scandal
London 's Islington location will shut following two years of trading after bosses decided against renewing the franchise's lease.
The restaurant, which has welcomed numerous famous faces, including Kate Garraway, Denise Van Outen, and Coleen Rooney, is known for its staff being rude to customers, with some clips going viral of staff going 'too far'.
One grandmother was left mortified last year after her waitress called her a 'silly b****' - while a father visiting an Australian branch of the restaurant was called a 'peado' in front of his 14-year-old daughter.
Karen's Diner, inspired by the internet trend of calling someone who always complains or gets angry at hospitality staff a 'Karen', said the upcoming closure resulted from 'the additional burden' of increased fixed costs, The Caterer reported.
The news comes after the restaurant's parent company, Viral Ventures UK, went into liquidation in September last year.
At the time, Viral Ventures UK reportedly owed over £400,000 to creditors, according to its accounts recorded to Companies House via Restaurant News Online.
The pending closure follows numerous Karen's Diner controversies, including when far-right commentator Katie Hopkins hosted a guest appearance at the chain's Prestwich branch last March, which led to anti-racist protests outside the restaurant.
That same month, Karen's Diner in Brighton Marina closed its doors after high traces of drugs were found on the premises.
The diner chain ceased trading at the franchise after a high reading of cocaine was found on a baby changing table following a police investigation.
In addition to the significant traces of drugs found, including MDMA, heroin, and ketamine, Sussex Police also discovered that the restaurant had broken licensing and safety rules.
Police investigated the branch after a customer filed a complaint regarding a joke made about a child, according to The Argus.
The force later requested that Brighton and Hove City Council review the licence amid safeguarding concerns.
The branch opted to cease trading one day before a formal hearing in front of a panel of three councillors was set to take place.
Police entered the premises during a licensing check on 2 February, 2024, and found traces of cocaine, heroin, MDMA, and ketamine in the toilets, on the kitchen pass, reception area, and on a customer table.
Sergeant Vince Lam was present during the investigation and told The Argus: 'There are some very high readings and most alarmingly a (very high reading) for cocaine on the baby-changing table.
'During changing, the baby's fingers could contact the surface where drugs have been consumed and (they could) then place their fingers in their mouth causing possible harm.'
High readings indicate that a surface has come into contact with 'bulk amounts' of a drug. Low readings suggest cross-contamination, background contamination or greatly degraded historic contamination.
In addition to the high readings located on the baby's changing table, police found low readings of cocaine at the reception desk, bar card machine, a customer table and in the men's toilets.
Low readings for heroin were found on the kitchen serving counter and the ladies toilet hand dryer.
A medium reading for heroin was found in the ladies restroom bin alongside a medium reading for ecstasy. The ladies restroom also had a low reading for ketamine.
In addition to the high presence of drugs found at the location, the force also discovered that the franchise was breaching its licence.
At the time of the investigation, staff were unable to find the CCTV hard drive. Police travelled back to the Brighton Marina the following day, only to find that the system had been removed.
The force then spoke to the premise's licence holder the next day, but he was also unaware of the hard drive's location.
The designated premise's supervisor, who is responsible for alcohol sales at the restaurant, was also flagged in the report for not being present at the restaurant often enough.
A representative from Karen's Diner told MailOnline at the time: 'Having investigated and studied the findings of Brighton and Hove Licensing Unit, we have decided to terminate our Franchise agreement with the Brighton operators.
'As from Monday the 4th of March, Karen's Diner will no longer trade on The Marina.
'Our restaurants are intended to offer outrageously funny experiences, and never to cause offence.
'Clearly the restaurant has operated outside of our guidelines and this is unacceptable.
'We take this opportunity of thanking the thousands of people that have been brave enough to visit and we share their disappointment as we announce this closure.'
Karen's Diner launched in Sydney, Australia, in 2021 before opening branches in the UK.
The chain's website described it as 'an interactive diner and an absurdly fun experience' - you get waited upon by rude waiters and forced to play a variety of 'stupid games.'
Now, Karen's Diner is reportedly diverting attention away from brick-and-mortar restaurants and towards pop-up events.
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