A popular UK fast food chain is set to shut down some of its restaurants and reduce staff numbers after appointing administrators.
Leon, known for offering healthy fast food options, has confirmed that Quantuma has been appointed as administrators, leading to upcoming restaurant closures. The exact number of closures is yet to be determined. Co-founder John Vincent, who reacquired the business in 2004, mentioned that unprofitable locations might have to be shut down to improve the company’s financial situation.
Leon has announced that the changes are part of a plan to streamline its operations. The restructuring process will involve closing several restaurants and laying off some employees. The company has put in place a support program for affected staff, aiming to either relocate them to other Leon restaurants or provide redundancy packages if relocation is not feasible.
Since being under Asda’s ownership for the past two years, Leon has faced financial challenges, leading to losses. Revenue decreased from £64.9 million in 2023 to £62.5 million in 2024, resulting in a pre-tax loss exceeding £8 million. The chain, which operates over 70 restaurants in the UK and 29 franchised sites, employs around 1,120 individuals.
Quantuma’s appointment as administrators marks the next phase in Leon’s restructuring since Mr. Vincent regained control of the business. The move is driven by the need to address operational inefficiencies and adapt to changing consumer behaviors exacerbated by the Covid-19 pandemic and tax increases.
Mr. Vincent highlighted the need for a review of the heavy tax burden on the sector, pointing out that a significant portion of revenue goes to the government, affecting profitability. The immediate focus for Leon is to close unprofitable restaurants, potentially replacing them with other brands or negotiating lease terminations with landlords.
Administrators from Quantuma expressed optimism about collaborating with the Leon team to achieve the best outcomes for all stakeholders, including creditors, suppliers, and employees. They acknowledged Leon’s significant presence in the food retail industry and have received positive support from suppliers and landlords.
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