Picture courtesy of Foodservice Equipment Journal

 

Leon is set to close around 20 of its eateries and reduce its workforce following a significant restructuring of the High Street chain. The announcement comes after John Vincent, the original co-founder, reacquired the company from Asda last month, appointing Quantuma as administrators. While no specific closures have been confirmed yet, all 71 locations remain operational, with staff reallocation efforts underway.

 

The company employs about 1,000 people and is exploring opportunities to place affected workers in positions within stores that will continue to operate. Vincent disclosed that Leon has been incurring losses of approximately £10 million annually. He emphasised an urgent need to shut down the chain's most unprofitable branches, stating, “We have found other brands to replace us, and landlords will take back leases in some cases.”

 

Vincent also announced impending menu changes expected by next spring and has initiated collaboration with Pret A Manger to support displaced staff. This programme will allow those who cannot secure positions in other Leon locations to apply for jobs with the coffee giant. Discussions with landlords are slated over the coming weeks as Quantuma works on plotting Leon's future.

 

Vincent expressed that Leon strayed from its foundational values under Asda's leadership, critiquing the struggles faced while managing the “healthier” fast food venture. Asda, previously stating the decision to sell Leon would help refocus on its core retail objectives, has not yet commented on the matter.

 

The challenges facing Leon reflect broader industry trends, exacerbated by internal difficulties, pandemic-induced shifts in work patterns, and mounting tax pressures. Vincent called for a government reassessment of the tax burden on the hospitality sector, stating that a significant portion of revenue ends up as taxes.

 

Known for its innovative approach to fast food, serving meals in cardboard boxes with healthy ingredients, Leon first opened in London in 2004, distinguishing itself from typical fast food offerings. The company's struggle mirrors recent closures by others in the sector, notably Pizza Hut UK’s operator.

 

Administrators indicated that the broader industry has been struggling with taxing trading conditions and rising costs, reported the BBC.

 

Key Takeaways

 

• Leon to shutter approximately 20 stores, impacting its workforce.
• The chain has experienced £10 million in annual losses, prompting urgent closures.
• Planned discussions with landlords and partner assistance from Pret A Manger.

 

  Adapted by ASEAN Now from BBC 2025-12-11

 

 

 

Rachel from accounts and her successive budgets for recession appear to be having the desired effect. 

LEON already crashed in the U.S. 

 

A nice idea but in a crowded market.

Sounds like Pret, who are enjoying UK profit growth, will pick up some bargains to augment their ongoing UK expansion.