Fast-food chain Leon is pivoting its strategy towards transport hubs, planning to expand its presence in service stations, airports, and train stations. This strategic shift comes after the company announced a restructuring that includes closing 20 of its High Street locations.

The decision is driven by rising business rates and overall cost increases that have made High Street locations less profitable, according to John Vincent, Leon's boss and original co-founder. The company had been losing £10 million a year. Vincent repurchased Leon from Asda last year, but the firm subsequently appointed administrators and announced a major restructuring of its 71 restaurants, which employ 1,000 people.

This move reflects a broader trend in the restaurant industry, where businesses are adapting to changing consumer behavior and economic pressures. The end of Covid-era business rates relief in April, coupled with increases in the rateable value of premises, are adding to the financial strain on hospitality businesses. Vincent described these tax increases as "incredibly toxic" for the industry, suggesting that only businesses offering lower-quality food would survive if taxes continue to rise.

Leon's focus on transport hubs represents a bet on capturing a different customer base – travelers seeking convenient and relatively healthy food options. This strategy aligns with the increasing demand for on-the-go meals and the captive audience that transport locations provide.

The future success of Leon's strategy hinges on its ability to effectively manage its operations in these new locations and adapt its menu to the specific needs of travelers. The company will also need to navigate the competitive landscape of the transport hub food market, which includes established players and other fast-food chains. The government claims to be backing hospitality businesses with a support package to limit bill rises, but the effectiveness of this support remains to be seen.