Another prominent UK restaurant chain has announced a significant retreat from the high street, with plans to close 20 sites across the country. LEON, known for its healthy fast food, has confirmed the move after collapsing into administration, citing unsustainable financial pressures.
Business Rates and Costs Force Strategic Shift
LEON founder John Vincent pointed directly to the upcoming rises in business rates from the Labour Party government, combined with broader cost increases, as the primary reasons for the restructuring. He revealed the chain has been losing a staggering £10 million a year.
In an interview on the BBC's Big Boss Interview podcast, Vincent described the tax rises as "incredibly toxic" for the hospitality sector. He warned that the current climate risks only leaving room for businesses selling lower-quality food to survive.
Pivot to Transport Hubs
The chain's new strategy involves a decisive pivot away from traditional high street locations. LEON will now concentrate its efforts on sites in service stations, airports, and train stations.
Vincent explained the financial logic, noting that a unit in a transport hub like Birmingham's Grand Central or New Street Station can generate two or three times the revenue of a typical high street branch. He emphasised that the move aligns with the brand's original mission to provide the best food for the most people, not just "posh fast food for posh people."
Full List of Permanent Closures
The decision, described by Vincent as "incredibly difficult," was exacerbated by "incredibly high upward-only rents." The closures will predominantly affect restaurants outside of London. The following LEON branches have now shut their doors for good:
- LEON Tongham – Tongham, Surrey
- LEON Notting Hill – Notting Hill Gate, London
- LEON Cheapside – Cheapside, London
- LEON ASDA (Milton Keynes) – Inside the Asda store in Bletchley, Milton Keynes
- LEON Shepherd's Bush – Westfield London, Shepherd's Bush, London
- LEON Richmond – George Street, Richmond upon Thames, London
- LEON Chancery Lane (High Holborn) – High Holborn, central London
In response to the challenges facing the sector, a Treasury spokesperson highlighted government support, stating: "We're backing hospitality businesses with a £4.3 billion support package to limit bill rises." They added that this is alongside capping corporation tax at 25% and other measures aimed at boosting high streets.
