The Street quotes Iwan Thomas on fast food chain Leon closing 20 restaurants amid a major restructuring

Financial news and literacy website The Street reports that once-popular restaurant chains have been "closing at alarming rates, proving that even well-established brands are not immune to economic uncertainty or shifting consumer habits". 

Leon, a UK-based “naturally fast-food chain” founded in London in 2004, once stood out for offering healthy yet tasty food that was affordable, fast, and high quality. With multiple locations across the UK and Europe, Leon built a loyal following and earned a reputation as a new alternative to traditional fast food.

The Street reports that, over time, Leon gradually moved away from its original identity. These changes came as the company was already facing mounting pressures from the aftermath of the COVID-19 pandemic, rising taxes and operating costs, a slowdown in consumer spending, and increased competition.

Now, four years after selling Leon, co-founder and former CEO John Vincent has reacquired the business from Asda in a deal reportedly valued between £30 million and £50 million. This represents a significant discount from the roughly £100 million Vincent received when Leon was first sold to the EG Group in 2021. As part of this reacquisition, Leon has unveiled a turnaround plan to return to its roots and win back lost customers, aiming to restore its iconic status and secure its long-term future. The strategy focuses on streamlining operations, renegotiating leases, and reducing its overall store footprint.

Iwan Thomas, Associate in our Corporate team, comments:

By cutting loss-making sites and sharpening its proposition, Leon can concentrate on quality, value and consistency where it matters most [...] As Vincent puts it, the goal is to rebuild on core values, return to profitability and grow again, creating jobs, not shedding them.

Read Iwan's longer article - Leon's reset: a pragmatic step towards its core - here.

Read the full article in The Street here.