Leon Founder Reacquires High Street Restaurant Chain from Asda

Strategic Insights -

John Vincent, the co-founder of Leon, has purchased the high street restaurant chain from Asda for an estimated £30-50 million, significantly less than the £100 million paid by the Issa brothers four years ago. Vincent, who launched Leon in 2004 with Henry Dimbleby and Allegra McEvedy, aims to revive the business after it struggled during the pandemic and expanded too rapidly. As part of the turnaround, Leon will focus on its original promise of serving high-quality fast food with a warm welcome.

Key Takeaways:

  • Leon's sales fell from £64.9 million to £62.5 million in 2024, while pre-tax losses decreased from £19.6 million to £8.4 million.
  • The chain's total number of sites decreased from 82 in 2023 to 79 last year, contrary to the Issa brothers' plan to open 20 new sites per year.
  • Leon has revamped its menu to include larger salads and is pushing to expand in supermarkets, selling branded goods such as frozen chicken nuggets and microwavable lentil packs.
  • Asda, the previous owner of Leon, is facing a multibillion-pound debt pile and swung to a loss of almost £600 million last year.
  • EG Group sold Cooplands, a bakery chain with 150 shops across the northeast, to a group of investors led by former boss David Salkeld in a cut-price deal.
  • Vincent aims to focus on the "basic Leon promise" of serving high-quality food with a warm welcome, and will make "some big decisions ahead" to achieve this goal.

Statistics:

  • Leon's sales: £64.9 million (2023) → £62.5 million (2024)
  • Pre-tax losses: £19.6 million (2023) → £8.4 million (2024)
  • Number of Leon sites: 82 (2023) → 79 (2024)
  • Asda's loss: almost £600 million (2024)
  • EG Group's sale of Cooplands: in a cut-price deal

Sources:

  • None cited in the original text.