Fast-food chain Leon has confirmed a major strategic shift, announcing plans to close approximately 20 of its high street restaurants while targeting expansion in airports, train stations, and service stations.
Administrators Appointed Amid Major Restructure
The company, which appointed administrators from Quantuma last month, is undergoing a significant restructuring. Leon stated that the high street sites slated for closure are no longer profitable. The group, which currently operates 44 company-owned and 22 franchised restaurants, is now in discussions with landlords about the future of these locations.
Why Transport Hubs Are the New Focus
In an interview on the BBC's Big Boss Interview podcast, co-founder John Vincent detailed the rationale behind the move. He explained that a 2% profit margin at an airport "is worth the same as a 6% margin on the high street" due to significantly higher revenue potential. "You might be doing two or three times the revenue in that airport than you might in a high street location," Vincent said.
He cited substantial annual losses of around £10 million, blaming a combination of overall cost increases and impending changes to business rates. A critical factor is the complete removal of business rate discounts from April 2026, following a previous reduction from 75% to 40%.
Job Cuts and Support for Affected Staff
The restaurant closures will inevitably lead to job losses. Leon has established a programme to support redundant employees. In the first instance, the company will try to relocate staff to other Leon restaurants. Where this isn't feasible, redundancy payments will be issued.
Furthermore, Leon has set up a dedicated channel with Pret A Manger for affected employees to apply for jobs, offering an alternative pathway for those facing redundancy.
The chain's recent history includes a sale to EG Group in 2021, later becoming part of Asda in 2023, before Vincent bought the business back. He noted that under Asda's ownership, "Leon was always a business they didn't feel fitted their strategy" amidst larger priorities for the supermarket giant.
