The popular UK fast-food chain Leon has announced it is considering store closures and job cuts as part of a major overhaul, following significant financial losses and declining sales.
Financial Struggles and Ownership Changes
Leon, which operates more than 70 restaurants across the UK and employs approximately 1,120 staff, is fighting to recover from the impact of the Covid-19 pandemic. The company recently filed accounts showing it operated at a substantial pre-tax loss of £8.38 million. Its sales also dropped, falling from £64.9 million in 2023 to £62.5 million in 2024.
The chain's founder, John Vincent, reacquired the business from the Issa brothers, the billionaire owners of Asda, in a deal estimated to be worth between £30 million and £50 million. This move came after he originally sold Leon to them for £100 million in 2021. Vincent has been openly critical of the management during the Issa brothers' ownership, blaming cost-cutting measures—such as reducing ingredient quality—for damaging the brand and contributing to the sales slump.
Plans for a Turnaround
In a bid to steer the company back to profitability, Leon's leadership is implementing a new strategy. Key elements of this plan include introducing smaller, more focused menus while keeping customer favourites, and significantly improving cleanliness standards across all locations.
The company is also conducting a review of its self-checkout kiosks to assess their effectiveness and customer reception. This comprehensive overhaul is designed to refine the brand's offering and customer experience, but it comes with the difficult acknowledgment that some restaurant sites may not remain viable, putting jobs at risk.
Broader Implications for UK Retail
The challenges facing Leon highlight the ongoing pressures within the UK's casual dining and quick-service restaurant sector. High operational costs, changing consumer habits post-pandemic, and intense competition continue to squeeze margins. The potential closure of stores underscores a turbulent period for high-street and retail park businesses, where even well-established brands are not immune to financial headwinds.
The coming months will be critical for Leon as it seeks to execute its recovery plan, balance its books, and secure the future for its remaining workforce and restaurant portfolio.
