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Fast-food group Leon is set to expand its presence in locations such as service stations, airports, and train stations, following the decision to close 20 of its High Street outlets, according to John Vincent, the company’s chief executive. Vincent cited the impending increases in business rates and overall rising costs as key factors making High Street operations less profitable. The chain has reportedly been incurring losses of around £10 million annually.
John Vincent, one of Leon’s original founders, reacquired the business from Asda last year. Despite this, the company entered administration last month and outlined plans to restructure its portfolio of 71 restaurants, which currently employ about 1,000 staff. The government has announced financial support measures aimed at helping hospitality businesses by limiting increases in operating expenses.
Vincent spoke out on the BBC’s Big Boss Interview podcast, describing tax hikes as “incredibly toxic” for the hospitality sector. He warned that further rises would force only those offering low-quality food to endure in the market. The business rates relief introduced during the Covid pandemic is set to expire in April, coinciding with rises in the rateable values of premises. While the Treasury has promised additional support for pubs, other hospitality operators have expressed frustration about being left out, despite ongoing discussions between Chancellor Rachel Reeves and the sector.
Reflecting on Leon’s operational strategy, Vincent mentioned that the traditional model—where having more fast-food outlets leads to better supply chain efficiency and operational improvements—may no longer hold true given current market pressures. He announced plans to close some restaurants outside London, but pointed out that high costs in the capital, including steep “upward-only” rents, pose serious challenges. Vincent also noted that while airport locations take a significant share of revenue, slimmer profit margins in such venues are still comparable to higher margins on the High Street due to larger overall sales volumes.
A Treasury spokesperson responded by highlighting the government’s £4.3 billion support package designed to curb rising costs for hospitality businesses. Additional measures include maintaining corporation tax at 25%, reducing regulatory burdens, and addressing the cost of living to invigorate High Streets.
Beyond financial challenges, Vincent believes Leon has lost sight of its founding mission: offering good-quality fast food that appeals to a broad audience. Initially, the menu was simple and healthy, featuring options like meatballs, a superfood salad, and tapas in contrast to typical fast-food staples like burgers and fried chicken. However, since the company was sold in 2021, Vincent said it has suffered from a loss of direction, with uncertainty over its menu identity. He sympathizes with previous owners due to the difficulties the sector has faced since the pandemic but insists that “Leon needs to make sense again.” Plans are underway to simplify the menu and restore the brand’s focus on delivering quality food accessible to the many, rather than catering to an upscale clientele
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