Leon warns of closures after £8m loss as founder plots revival
Leon warns of closures after £8 million loss

The popular fast food chain Leon has issued a warning over possible restaurant closures after recording a significant financial loss. The burger and fries business, which operates a site in Birmingham among many others across the UK, reported a pre-tax loss of more than £8 million.

A Plan to Revitalise the Chain

Co-founder John Vincent, who recently reacquired the business, stated that the potential closures form part of a bold strategy to completely revitalise the brand. Mr Vincent sold Leon to Asda-owning brothers Mohsin and Zuber Issa in April 2021 for around £100 million, before buying it back in October of this year.

He explained that the management team had lost confidence and the chain had strayed from its leadership in food. "Leon’s decline has only really accelerated when it became an orphan child going from EG to Asda," Vincent told the Sunday Times. "Asda didn’t want it; they’ve got their own challenges."

Negotiations, Closures, and a New Menu Focus

The revival plan involves entering into negotiations with landlords, with some unprofitable sites likely to shut down. The company's headcount may also be reduced. Vincent's ambitious goal is to recreate Leon as 'the Earth’s favourite fast food'.

A significant menu shake-up is expected in the spring, moving towards seasonality and "abundance." This will result in smaller, more focused menus. "Chefs are not in touch with the earth. Understanding the earth is love," Vincent remarked, highlighting his philosophical approach to the turnaround.

Operational Overhauls and Customer Conundrums

Other changes include a renewed emphasis on cleanliness, with managers required to share daily "before and after" cleaning pictures via WhatsApp groups. Vincent compared this discipline to making a bed in the military, stating a turnaround should be based on fundamental disciplines.

He also addressed the future of self-checkout kiosks in Leon restaurants. "My instinct was to lose them, and I may well do, but I have found some customers don’t want to talk to a human. So I am mulling over that little conundrum," he said.

Ultimately, Vincent's vision is qualitative, not quantitative. "I don’t want to have the most restaurants in the world; I want to have the best restaurants in the world," he concluded, aiming for Leon to lead by example and inspire the industry.