Once-popular restaurant chains have been closing at alarming rates, proving that even well-established brands are not immune to economic uncertainty or shifting consumer habits. Longevity alone no longer guarantees success in an industry shaped by rising costs, evolving preferences, and intense competition.
But for this fast-food chain, the challenge ran even deeper than the typical pressures affecting the broader industry. While innovation and constant reinvention are often seen as essential for survival, this brand’s aggressive push to evolve may have had the opposite effect, causing it to lose sight of what made it successful in the first place and sending the business into a downward spiral.
Leon, a UK-based “naturally fast-food chain” founded in London in 2004, once stood out for offering healthy yet tasty food that was affordable, fast, and high quality. With multiple locations across the UK and Europe, Leon built a loyal following and earned a reputation as a new alternative to traditional fast food.
Over time, however, that innovative mindset may have gone too far. Leon gradually moved away from its original identity, leaving customers feeling disconnected from the brand they once loved. These changes came as the company was already facing mounting pressures from the aftermath of the COVID-19 pandemic, rising taxes and operating costs, a slowdown in consumer spending, and increased competition.
Together, these missteps pushed Leon into financial trouble and cost the company hundreds of customers. Now, years after the founding family gave up control, they are stepping back in to try to restore the brand’s original vision.
Leon reacquired by the founding family
Four years after selling Leon, co-founder and former CEO John Vincent has reacquired the business from Asda in a deal reportedly valued between £30 million and £50 million. This represents a significant discount from the roughly £100 million Vincent received when Leon was first sold to the EG Group in 2021.
Leon operates 71 restaurants, including 44 company-owned locations, and employs approximately 1,000 workers as of mid-December 2025, according to Verdict Food Service.
Leon Ownership Timeline
- 2004: Leon was founded as an independent company (Source: Leon)
- 2021: Sold Leon to EG Group, owned by Mohsin and Zuber Issa, for £100 million (Source: Restaurant Online)
- 2023: EG Group sells its UK assets to sister company Asda as part of a £2.27 billion merger (Source: The Caterer)
- 2025: Leon is reacquired by co-founder and Former CEO John Vincent for around £30 million to £50 million (Source: The Guardian)
Leon is closing 20 restaurants as part of a major comeback strategy.
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Leon reveals plans to close 20 restaurants
As part of this reacquisition, Leon unveiled a turnaround plan to return to its roots and win back lost customers, aiming to restore its iconic status and secure its long-term future. The strategy focuses on streamlining operations, renegotiating leases, and reducing its overall store footprint.
Leon plans to exit underperforming markets, specifically across Brighton and Manchester, while concentrating on its London locations, where it currently operates 29 restaurants. By the end of January, the company will permanently close 20 restaurants, resulting in a reduction of its total store count.
Since the buyout, 10 locations have already shuttered, including three overseas franchises, according to The Guardian. Vincent also plans to eliminate Leon’s £25-a-month Roast Rewards program.
Although the closures will impact hundreds of employees, Leon says it will attempt to redeploy affected staff to other locations and has partnered with Pret A Manger to help provide additional job opportunities. The company has not yet released a full list of restaurants set to close or specified how many roles will be lost.
“If you look at the performance of Leon’s peers, you will see that everyone is facing challenges – companies are reporting significant losses due to working patterns and increasingly unsustainable taxes,” said Vincent to the Guardian.
Leon plans to open 100 restaurants once profitable
Once the turnaround has been completed and the business returns to profitability, Leon plans to open around 100 UK restaurants over the next four years. Most of this expansion will focus on London, but growth in select international markets is also under consideration. This move will create hundreds of jobs and support economic growth.
While no specific countries have been confirmed, Leon previously operated U.S. locations in Washington, D.C., and Virginia before closing them in 2021 due to the pandemic. With the brand now positioning itself for a comeback, the U.S. could be among the first markets considered for a return.
More Restaurant Closures:
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- McDonald’s announces unexpected closure, sparking major backlash
- Popular coffee chain closing its headquarters after bankruptcy
This restructuring comes as Leon prepares to file a Company Voluntary Arrangement (CVA), a UK insolvency process that allows businesses to restructure their debt and repay creditors over a fixed period of time.
According to the latest accounts filed at the Companies House, Leon’s sales declined by nearly 4% to £62.5 million in 2024, resulting in a pre-tax loss of £8.38 million.
“By cutting loss-making sites and sharpening its proposition, Leon can concentrate on quality, value and consistency where it matters most,” said Charles Russell Speechlys Industry Expert Iwan Thomas. “As Vincent puts it, the goal is to rebuild on core values, return to profitability and grow again, creating jobs, not shedding them.”
Leon menu revamp
In addition to the dozens of store closures, Leon is overhauling its menu by cutting items that don’t align with its brand, enhancing the quality of its most popular dishes, and reintroducing fan-favorite items that were previously discontinued.
Over the last few years, under its previous ownership, Leon introduced items such as chicken nuggets, burgers, fries, and cakes, foods that many customers felt clashed with its healthy image.
The new menu is expected to launch in spring 2026 and aims to bring Leon back to the simple, healthy, and tasty food that initially defined the brand in its early years.
“Leon has to be niche: it can’t be on every high street. We want to be the best food company in the world but don’t want to be the biggest,” said Vincent to The Guardian.
The food service industry faces rising costs and challenging consumer behavior
The global quick-service and fast-food market reached $265.86 billion in 2024 and is projected to grow at nearly 4% annually, reaching $381.79 billion by 2033, according to Imarc Group.
Despite this growth, the industry faces persistent and unpredictable challenges that have contributed to the closure of thousands of restaurants worldwide.
In the U.S. alone, prices for food at home increased 2.6%, while prices for food away from home rose 3.7% in the 12 months ended September 2025, according to recent U.S. Bureau of Labor Statistics data.
These higher costs have led to a 1% decline in food service traffic in the quarter ending June 2025, as consumers cut back on dining out, according to Circana.
“If debt is a piece of the profit puzzle, food costs are another. In fact, they appear to be an even bigger, more widespread concern,” said QSR and FSR Magazines Editorial Director Danny Klein.
Harvard Business School Consultant and Lecturer on Restaurants Michael S. Kaufman added, “Consumers are saying, ‘We’re struggling, or we’re beginning to struggle or we’re thinking more carefully about what we spend.'”
“I don’t know that the ability to maintain the large fleets of traditional casual dining restaurants can continue,” Kaufman added.
Related: 65-year-old fast-food chain sues major operator after closures
