Leon founder: Labour ‘killing’ restaurant industry
The founder of fast food chain Leon has accused the government of “killing” the restaurant industry by saddling the industry with a crushing tax burden.
John Vincent, who founded Leon and recently bought it back, said on Tuesday “everyone knows restaurants are done” because of the government’s treatment of hospitality.
The government has faced intense pressure in recent months over the burden on restaurants and pubs, with business rates and employment costs rises coming into force this month.
Vincent told Times Radio: “The high street is dead. I spoke to the guy that owns one of the biggest […] competitors of Leon. He said restaurants are done. Everyone knows restaurants are done.
“This is not the market that’s doing this. This is the government. It’s not the consumer that doesn’t want to eat in restaurants.
“It is the government who is totally killing the restaurant industry.”
Third of hospitality firms cut jobs due to tax burden
Two thirds of hospitality firms have said they will be forced to cut jobs by the April tax rises, while one in seven will shut altogether.
More than half of hospitality firms will cancel investment plans and 42 per cent will reduce trading hours, according to a survey of more than 20,000 businesses.
Restaurants and hotels were left out of a £300m emergency package offered to pubs earlier this year following business rates changes at the Budget.
John Vincent bought back Leon, which markets itself as a natural alternative to fast food, last year for less than half the amount he sold it for years prior.
Vincent sold the chain to the billionaire Issa Brothers for £100m in 2021, before they offloaded it to Asda in 2023.
In October last year Vincent bought Leon back for between £30m and £50m and pledged to mount a turnaround, though the company plunged into administration weeks later.
The restaurant announced the closure of 20 of its restaurants and said job cuts would follow, appointing Quantuma as its administrator.
Leon said it would work with cafe chain Pret a Manger to offer redundant workers new roles.
Announcing the collapse, Vincent blamed changing work patterns – caused by the Covid-19 pandemic – for the restaurants’ loss of custom.
Leon also said tax increases have placed “further strain on the business and the wider hospitality industry in recent years”.
“I have people calling me in tears every day saying they’ve owned restaurants for 40 years and now they’re going under,” Vincent said.
The Treasury was contacted for comment.