The founder of the 'naturally fast food' chain Leon has launched a scathing attack on the government's fiscal policies, warning that Labour's 'incredibly toxic tax regime' is crippling his efforts to revive the struggling business.
A 'Toxic' Tax Burden on Hospitality
John Vincent, the original co-founder who repurchased the company last November, issued a stark warning that more restaurant chains will 'disappear' under Chancellor Rachel Reeves's policies. He argued that only outlets selling 'crap' food will survive the current economic squeeze.
In a revealing interview with the BBC's Today Programme, Mr Vincent laid bare the financial strain. He stated that for every pound Leon generates, 36 pence goes to the government in tax, while the business is left with 'negative ten pence'. He attributed this dire situation primarily to VAT on eat-in food—a cost supermarket competitors avoid—and recent hikes in employer National Insurance contributions.
Administration and a Radical Restructuring
Leon's financial woes are severe, having been haemorrhaging £10 million a year. The chain entered administration in December 2025, just weeks after Mr Vincent completed his buyback. The company, founded in 2004, was sold to EG Group in 2021, transferred to Asda in 2023, before returning to its founder's hands.
In a bid to return to profitability, Mr Vincent is taking drastic action, axing 20 of its 71 loss-making branches. He expressed a desire to expand but insisted the government must first alter the tax landscape devastating the sector. 'I would love to have more restaurants,' he said, 'but the government must first change its incredibly toxic tax regime that is impacting our industry.'
Broader Challenges: Gen Z and Post-Brexit Labour
Beyond taxation, the Leon boss highlighted other existential threats. He fears that anti-social trends among Generation Z could force the business away from human interaction. 'My fear is that young people don’t want to talk to humans, they just want to order on a screen or a phone,' he stated, potentially necessitating more tech-focused solutions against his preference for investing in people.
He also suggested the quality of potential staff has been 'compromised' following Brexit and the Covid-19 pandemic, further pushing the model towards automation.
Amid the challenges, Mr Vincent sees a potential opportunity in the rise of weight loss jabs. He believes Leon's focus on healthier, conscious eating aligns with the dietary shifts of people using such medications, presenting a new market to exploit.
Concluding with his business philosophy, he emphasised the primacy of purpose over profit. 'My really strong belief is that when you run a business for money, you end up making less money,' he said. 'If you focus on soul, purpose, then product, then business model, then people, the customer and then economics, the economics come good.'
