Fast-food chain Leon is shifting its focus to transportation hubs like service stations, airports, and train stations, following the closure of 20 High Street locations. CEO John Vincent cited rising business rates and overall cost increases as factors making the High Street less profitable.

The company had been losing £10 million annually. Vincent, a co-founder, repurchased Leon from Asda last year. However, the firm appointed administrators last month and announced a major restructuring of its 71 restaurants, which employ 1,000 people.

The move reflects a broader trend of businesses adapting to changing economic conditions and consumer behavior. The end of Covid-era business rates relief in April, coupled with increases in the rateable value of premises, are putting pressure on hospitality businesses. Vincent described tax increases as "incredibly toxic" for the industry, suggesting that only businesses offering lower-quality food would survive further tax hikes.

Leon, founded with a focus on healthier fast food, initially thrived on the High Street. The company's restructuring highlights the challenges faced by businesses balancing quality and affordability in a competitive market.

The future success of Leon's strategy hinges on its ability to capture the transient customer base in transportation hubs. This pivot could provide a more sustainable business model, but it also requires adapting its menu and operations to meet the specific demands of these locations. The company's ability to navigate these challenges will determine whether it can revive its fortunes.