A shadow hangs over Leon, the once-thriving fast-casual chain, as a significant number of its 71 restaurants face potential closure. The future remains uncertain for a substantial portion of the business, leaving a sense of unease among loyal customers and dedicated staff.
The impact will be deeply felt by the workforce, with some of the 1,000 employees bracing for job losses. While the company leadership has expressed a commitment to redeploying staff to other locations, the reality is that many livelihoods are now at risk.
The company points to a confluence of factors contributing to its current predicament. The shift towards remote work following the pandemic has demonstrably impacted foot traffic, while simultaneously, rising 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 stark financial reality is reportedly widespread across the industry, contributing to significant losses for many.
Beyond the immediate economic pressures, a sense of past neglect also appears to be weighing on the situation. The brand’s recent ownership history, first under EG Group and then Asda, is described as a period where Leon’s unique identity and core values were allowed to drift.
While acknowledging the challenges faced by previous owners, current leadership suggests that Leon was not a strategic priority during its time under Asda’s umbrella. This perceived lack of focus may have contributed to the current difficulties, leaving the brand vulnerable to external pressures.
The situation underscores the precariousness of the restaurant industry, where even established brands can be quickly destabilized by shifting economic conditions and evolving consumer habits. The coming weeks will be critical as Leon navigates this challenging period and determines its path forward.
