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Leon, the well-known High Street food chain, has revealed plans to shut around 20 of its outlets and reduce its workforce as part of a significant restructuring effort. This announcement follows the company’s appointment of Quantuma as administrators, shortly after co-founder John Vincent reacquired Leon from Asda last month. Although no specific closures have been finalized yet, the decision puts some of the chain’s 71 restaurants—particularly the poorest-performing ones—under threat. Currently, all locations remain open, with approximately 1,000 employees still working across the business.
John Vincent highlighted that the company has been operating at a loss of about £10 million each year. Following a thorough review, the immediate focus is on closing the least profitable branches. “In many cases we have found other brands to replace us, and in others we will be asking the landlords to take the leases back and find better suited operators themselves,” he stated. Vincent also indicated that customers should expect significant changes to the menu starting next spring. To support affected employees, Leon has partnered with Pret A Manger to offer opportunities for those who cannot be redeployed within the remaining stores.
Over the coming weeks, Leon will be working closely with Quantuma to negotiate with landlords and explore strategic options for the company’s future direction. Vincent expressed his belief that under EG and Asda’s management, Leon had strayed from its original values, although he acknowledged the challenges they faced operating a “healthier” fast food business. He remarked, “In the last two years, Asda had bigger fish to fry, and Leon was always a business they didn’t feel fitted their strategy.” Vincent also pointed out that Leon’s struggles are not unique, noting, “If you look at the performance of Leon’s peers, you will see that everyone is facing challenges – companies are reporting significant losses due to working patterns and increasingly unsustainable taxes.”
The difficulties faced by Leon have been attributed to both internal operational issues and external factors such as pandemic-driven shifts in working habits, as well as increased tax pressures affecting the entire hospitality sector. Vincent advocated for a governmental review of the tax burden, explaining, “Today for every pound we receive from the customer, around 36p goes to the government in tax, and about 2p ends up in the hands of the company. It’s why most players are reporting big losses.” Founded in 2004, Leon has carved out a niche by offering fast food that emphasizes health, serving meals in cardboard boxes with ingredients like brown rice and fresh herbs—a contrast to traditional fried and fast-food options. The company’s current financial restructuring mirrors challenges faced by others in the sector, including Pizza Hut UK’s parent company, DC London Pie, which recently announced closures and redundancies due to tough trading conditions and increased costs
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