Leon Founder Accuses Government of 'Killing' Restaurant Industry with Tax Burden
John Vincent, the founder of the fast food chain Leon, has launched a scathing attack on the government, claiming it is "totally killing the restaurant industry" by imposing a crushing tax burden on hospitality businesses. Vincent, who recently bought back Leon only to see it enter administration, made the comments in a radio interview on Tuesday, highlighting widespread distress in the sector.
Government Policies Blamed for Industry Collapse
Vincent told Times Radio that the government's treatment of hospitality, including recent rises in business rates and employment costs, has made restaurants unsustainable. "The high street is dead," he stated, quoting a major competitor who said "restaurants are done." He emphasized that market forces or consumer demand are not to blame, but rather government policies that have saddled businesses with excessive costs.
Survey Reveals Dire Impact on Hospitality Firms
A survey of over 20,000 businesses paints a grim picture:
- Two-thirds of hospitality firms plan to cut jobs due to April tax increases.
- One in seven businesses expect to shut down entirely.
- More than half will cancel investment plans.
- 42% will reduce trading hours to cope with financial strain.
Vincent reported receiving daily calls from restaurant owners in tears, facing closure after decades in business.
Leon's Troubled History and Recent Administration
Leon, which markets itself as a natural alternative to fast food, has faced significant turmoil:
- Vincent sold the chain to the billionaire Issa Brothers for £100 million in 2021.
- It was later offloaded to Asda in 2023.
- In October last year, Vincent bought it back for between £30 million and £50 million, pledging a turnaround.
- Weeks later, the company entered administration, closing 20 restaurants and cutting jobs, with Quantuma appointed as administrator.
The collapse was attributed to changing work patterns post-Covid-19 and tax increases that placed "further strain on the business and the wider hospitality industry." Leon is working with Pret a Manger to offer new roles to redundant workers.
The Treasury has been contacted for comment but has not yet responded to the allegations.
