Leon to Close Restaurants and Cut Jobs Amid Major Restructuring

Leon, the fast food chain founded in 2004 as a healthier alternative to traditional fast food, is set to close 20 of its 70 UK restaurants and make job cuts as part of a major restructuring effort to stem mounting losses. John Vincent, the co-founder who recently regained control of the company, has outlined sweeping changes aimed at returning the business to profitability after a period of sustained financial decline.

Mr Vincent, who repurchased Leon in October following a turbulent period under previous ownership, announced that the company had hired administrators to oversee a Company Voluntary Arrangement. This legally sanctioned restructuring will allow Leon to reduce its portfolio from 70 to 50 locations, with the expectation that several unprofitable sites will close and a number of staff will be made redundant. Where possible, staff will be relocated to other Leon outlets or referred to positions at Pret A Manger via a dedicated recruitment channel.

In correspondence with customers, Mr Vincent attributed the company’s difficulties to a combination of mismanagement during the tenure of former owners Mohsin and Zuber Issa and external pressures such as high taxes, dwindling city centre footfall, shifting work patterns and increased operating costs in the hospitality sector. He revealed that Leon is currently losing £10 million annually and that too many locations have become unviable under the current climate.

Mr Vincent stated that Leon had lost sight of its founding principles during the ownership transitions from EG Group to Asda, both controlled by the Issa brothers, while broader industry challenges have exacerbated losses across the restaurant sector. Company accounts show Leon posted an £8.83 million loss in 2024, with sales falling from £64.9 million to £62.5 million in the same period.

The company has retained the consultancy Quantuma to advise on the restructuring, seeking to reduce operational costs and close underperforming sites. Positive support from landlords and suppliers has been reported, reflecting Leon’s established role in the UK hospitality industry. Mr Vincent is also lobbying government for tax reforms, arguing that current levels mean only a small fraction of customer spending returns to the business, with 36 pence in each pound paid in various taxes.

With the restructuring process underway, Vincent has pledged to restore Leon’s original ethos and streamline operations to ensure the brand remains competitive within a challenging retail and hospitality environment.