The founder of the popular fast-food chain Leon has issued a stark warning that some of its 51 London branches could face closure, after the business recorded crippling losses of more than £8 million.
Founder Returns to Rescue Struggling Brand
John Vincent, who established Leon back in 2004, recently bought back the company from EG Group and has now laid out a challenging recovery plan. In a candid interview with the Sunday Times, Vincent admitted that unprofitable sites may need to shut down to secure the future of the wider business. He also acknowledged that staff redundancies could be part of the necessary restructuring.
Years of Turbulence Under Asda Ownership
The chain's financial troubles deepened during its two-year tenure under supermarket giant Asda. Vincent described Leon as becoming an "orphan child" during this period, passed from EG to an Asda business that was itself grappling with billions in debt following its own £6.8 billion takeover in 2021.
Financial figures reveal the scale of the struggle. Revenue across Leon's estate fell from £64.9 million in 2023 to £62.5 million in 2024, culminating in a pre-tax loss exceeding £8 million. Vincent believes the brand lost its way, straying from the core values that initially made it a success.
A Return to Roots and a Kiosk Conundrum
Vincent's revival strategy centres on a return to Leon's founding ethos. This includes a planned overhaul of the menu and a critical review of customer service. He is notably sceptical of the self-service kiosks installed in venues, arguing they limit meaningful interaction between staff and customers.
"My instinct was to lose them, and I may well do," Vincent stated, before adding, "I have found some customers don't want to talk to a human. So I am mulling over that little conundrum."
The path to recovery will involve tough negotiations with landlords over rents, and Vincent has conceded that some job losses might be unavoidable as part of the process. Outlining his vision on LinkedIn, he wrote: "Together with passionate team members... I am working to give you the earth's favourite fast food. There will be challenges, magic moments, herbs and spices." He pledged to conduct the turnaround "in plain sight," inviting ideas from the public for the brand's future.
