A shadow hangs over Leon, the once-vibrant fast-casual chain, as a significant number of its 71 restaurants face potential closure. The future remains uncertain for a substantial portion of the company’s locations, sparking anxieties among employees and loyal customers alike.
The impact will be deeply personal for many. Approximately 1,000 individuals employed by Leon are now at risk of losing their jobs, a stark reality looming over the company. However, leadership has stated a priority will be given to relocating staff to other existing Leon restaurants whenever possible.
The company points to a confluence of factors contributing to its current difficulties. The shift towards remote work following the pandemic dramatically altered foot traffic patterns, while simultaneously, escalating tax burdens have squeezed profit margins to an unsustainable level.
According to company leadership, a staggering 36 pence of every pound spent by a customer now goes directly to the government in taxes, leaving a mere 2 pence for the business itself. This financial strain, they argue, is a widespread issue impacting the entire industry.
Beyond the immediate economic pressures, a sense of past neglect also appears to be fueling the crisis. The current leadership suggests that during the past two years, under the ownership of Asda, Leon was not a strategic priority, and resources were diverted elsewhere.
While acknowledging the challenges faced by previous owners EG and Asda, the current leadership believes the brand drifted from its core values during their tenure. This perceived deviation from its original mission is now seen as a contributing factor to the current predicament.
