The well-known fast food chain Leon has officially entered administration, resulting in the closure of seven locations across the United Kingdom. This restructuring effort comes in response to significant financial challenges, with the company aiming to stabilize its operations by cutting around 20 restaurants and reducing its workforce by approximately 200 jobs.
Financial Struggles Prompt Major Changes
Leon, celebrated for its halloumi burgers and waffle fries, built its brand on offering natural, fast-casual dining options. Despite growing a loyal customer base and opening 57 branches, the company has faced ongoing profitability issues in recent years. In an official statement, CEO John Vincent revealed that Leon has been incurring losses of about £10 million annually. “For every pound we receive from the customer, around 36p goes to the government in tax, and about 2p ends up in the hands of the company,” he explained, highlighting the tax burden that has impacted financial performance.
Leon has enlisted Quantuma to oversee its recovery efforts and long-term strategy. The company plans to close underperforming locations while seeking agreements with landlords to terminate rental obligations for others. In the wake of these closures, some leases will be taken over by alternative brands.
Impact on Employees and Future Plans
As part of the restructuring, Leon is prioritizing the redeployment of staff to other operational branches. Currently, the company employs around 1,000 people. For those unable to be reassigned, Leon has partnered with Pret A Manger to facilitate job placements for affected employees.
Earlier this month, the following locations were confirmed to be permanently closed:
- LEON – Tongham, Surrey
- LEON – Notting Hill Gate, London
- LEON ASDA – Milton Keynes
- LEON – Westfield London, Shepherd’s Bush, London
- LEON – George Street, Richmond upon Thames, London
- LEON Chancery Lane – High Holborn, central London
- LEON – Cheapside, London
Vincent noted that the previous ownership under Asda did not align with the company’s strategic direction. He expressed optimism about rebuilding Leon based on its core values, emphasizing a commitment to returning to profitability and potentially expanding in the future. “I hope to be providing jobs to many more people once we have returned to profitability and can continue to grow again,” he said.
This restructuring marks a critical moment for Leon as it navigates a challenging business landscape. With competitors also reporting significant losses, the fast food industry faces broader economic pressures that continue to reshape its future.
