Fast-food chain Leon is pivoting its expansion strategy towards transport hubs, including service stations, airports, and train stations, following the closure of 20 High Street locations. The decision, revealed by CEO John Vincent, comes in response to rising business rates and overall cost increases that have eroded profitability on the High Street.

Leon had been experiencing losses of £10 million annually. Vincent, who co-founded the chain, reacquired the company from Asda last year. However, the company appointed administrators last month, initiating a significant restructuring of its 71 restaurants and impacting its 1,000 employees. The restructuring highlights the financial pressures faced by businesses in the current economic climate.

The move reflects a broader trend within the fast-food industry, where businesses are adapting to changing consumer habits and economic realities. High Street locations, traditionally prime real estate, are becoming increasingly expensive to operate, prompting companies to explore alternative locations with potentially higher foot traffic and lower overheads. The government's support package aimed at limiting bill rises for hospitality businesses may not be sufficient to offset the combined impact of rising business rates and the end of Covid-era relief measures.

Leon, known for its focus on healthier fast food options, was founded with the aim of providing nutritious and convenient meals. The company's initial success was built on its High Street presence, catering to busy urban professionals. However, the changing economic landscape has forced a reevaluation of its business model.

The future success of Leon's strategy hinges on its ability to effectively capture the market within transport hubs. This requires adapting its menu and operations to meet the specific needs of travelers, while maintaining its commitment to quality and healthy options. The expansion into these new locations presents both opportunities and challenges, as Leon navigates a competitive market and strives to regain profitability. The company's performance in these new venues will be a key indicator of its long-term viability.