Leon, known for its healthy fast food options, has been struggling with declining sales and increasing financial pressures. The company, which employs over 1,000 staff across 66 sites, has revealed plans to shut unprofitable restaurants in a bid to ensure its long-term survival, though the exact number of closures has yet to be disclosed.
Financial Struggles and the Need for Restructuring
According to reports, Leon’s sales have seen a decline over the past year, dropping from £64.9 million in 2023 to £62.5 million in 2024. This decline in revenue contributed to a pre-tax loss of over £8 million, further exacerbating the chain’s financial difficulties. These figures come as the hospitality industry continues to face pressures from rising costs and an “unsustainable” tax burden, as described by Leon’s co-founder John Vincent.
To combat these issues and secure its future, Leon has appointed Quantuma, a specialist advisory firm, to help manage the restructuring process. The company has also applied for a CVA, which would allow it to restructure its operations and potentially close several of its locations. Vincent, who co-founded Leon in 2004, indicated that some of the company’s least profitable sites would likely have to shut down, though he has not yet confirmed the number of closures.
Despite these financial setbacks, Vincent remains focused on securing Leon’s future. The company is working on a plan to restructure its operations through a company voluntary arrangement (CVA), which would include closing a number of unprofitable locations. However, Leon has assured that its grocery business, which operates separately from its restaurants, will not be impacted by these changes.
Plans to Support Affected Employees
In light of the expected job losses, Leon has outlined a series of measures to support its employees throughout the restructuring process. With 1,120 staff currently employed across its restaurants, the company has emphasised its commitment to providing redundancy payments to those who lose their roles. In the first instance, Leon will seek alternative positions for staff at other locations within the chain.
However, for employees who are unable to relocate or find new positions within the company, the chain has set up a programme to assist them in securing new employment. Through a partnership with Pret A Manger, redundant employees will be able to apply for roles at the popular sandwich chain via a dedicated recruitment channel. This initiative is part of Leon’s effort to ease the impact of the restructuring on its workforce and offer viable alternatives to those affected.
While the closures and job cuts represent a difficult chapter for the company, these support measures aim to mitigate the impact on staff and help maintain Leon’s positive reputation in the hospitality sector.
