An asylum hotel's kitchen was being used for burger shops operating on delivery services such as Uber Eats and Deliveroo, it has been reported.

Two local residents have uncovered a clandestine fast food operation running from the kitchen of a taxpayer-funded asylum hotel in Wakefield, West Yorkshire.

The pair filmed themselves entering the Cedar Court Hotel, where they discovered takeaway meals being prepared for Deliveroo and Uber Eats customers.

Their footage revealed a sign directing delivery drivers to a "Uber Eats, Deliveroo Collection Point" at the premises, which houses hundreds of asylum seekers.

Two local residents have uncovered a clandestine fast food operation running from the kitchen of a taxpayer-funded asylum hotel in Wakefield

Security personnel quickly removed the two men from the property and contacted police.

The hotel kitchen had been secretly operating as a base for fast food businesses Big Boi Burgers and Absurd Stacks, despite the building being closed to the public for five years to accommodate migrants.

The Home Office has confirmed the takeaway operation constituted a "misuse" of asylum accommodation and launched an immediate investigation.

Officials are examining whether EC4 Hotel Ltd, which runs the Cedar Court, breached its Government contract by sub-letting the kitchen.

EC4, headed by Monaco-based Nadja Kovic Nassar, reported a turnover of nearly £18million in 2024.

Footage showed a sign on the door of the premises which read: 'Uber Eats, Deliveroo Collection Point'

The Cedar Court forms part of a £2.5billion 10-year contract with Mears Group, one of three firms providing asylum accommodation alongside Clearsprings and Serco.

These three companies collectively receive £5million daily from the Government on asylum housing contracts.

Minister for Border Security and Asylum, Dame Angela Eagle, recently acknowledged that government controls over these contracts and their subcontractors were "quite weak".

Wakefield Council, which had licensed the food businesses, has also initiated its own investigation into the matter.

The hotel kitchen had been secretly operating as a base for fast food businesses Big Boi Burgers and Absurd Stacks

The illegal kitchen was "immediately" closed following the Home Office investigation, a spokesperson confirmed.

They said: "This activity is wholly unacceptable", adding that "immediate action has been taken to ensure the service is no longer operating at the site".

Footage showed a sign on the door of the premises which read: “Uber Eats, Deliveroo Collection Point”.

Security officials forced the two men off the premises and called police to the scene.

Takeaway meals were being prepared for Deliveroo and Uber Eats customers

The scandal emerged as the Government met with Deliveroo, Uber Eats and Just Eat executives to address immigration violations on their platforms.

A Deliveroo spokesman said: “Virtual brands like Absurd Stacks are fully registered food businesses, offering a delivery-only restaurant service.

"After being made aware of the potential relationship between the hotel group running the virtual brand and the Home Office, we suspended them from our platform while we investigate further.”

An Uber Eats spokesman said: “We have suspended this ­restaurant’s access to our platform and are fully investigating.”