Fast food chain Leon has announced a significant shift in strategy, confirming plans to close approximately 20 high street restaurants while targeting expansion in transport hubs like airports and train stations. The move comes after the company appointed administrators last month as part of a major business restructure.
From High Street to Transport Hubs
Speaking on the BBC's Big Boss Interview podcast, Leon's co-founder John Vincent detailed the rationale behind the pivot. He explained that operating in airports, despite lower profit margins, can be more lucrative due to significantly higher revenue. A 2% profit margin at an airport "is worth the same as a 6% on the high street," Mr Vincent stated, adding that sites in transport hubs can generate "two or three times the revenue" of a typical high street location.
Financial Pressures and Administration
The decision follows severe financial strain. Mr Vincent disclosed that Leon has been losing around £10 million annually. He cited upcoming changes to business rates and rising operational costs as critical factors. Business rate relief, which was already reduced from 75% to 40%, is set to be scrapped entirely from April 2026.
The chain, founded in 2004 by John Vincent, Henry Dimbleby, and Allegra McEvedy, currently runs 44 company-owned sites and 22 franchised outlets. Advisers from Quantuma have been appointed to manage the administration process and negotiate with landlords over the future of the affected sites.
Redundancies and Support for Staff
The restaurant closures will unfortunately lead to job losses. Leon has established a support programme for affected employees. "In the first instance, we will look to find people roles in other Leon restaurants," Mr Vincent said. Where relocation isn't feasible, staff will receive redundancy payments.
Additionally, the company has set up a dedicated channel with Pret A Manger, allowing affected Leon employees to apply for jobs there. This development follows Mr Vincent's recent repurchase of Leon from Asda, which had acquired the chain via the EG Group in 2021. "Asda had bigger fish to fry, and Leon was always a business they didn't feel fitted their strategy," he reflected.
Mr Vincent concluded by noting the wider challenges facing the sector, stating that many peers are reporting significant losses due to shifting working patterns and what he described as increasingly unsustainable taxes.
