Fast-food chain Leon is pivoting its business strategy, focusing on establishing restaurants in service stations, airports, and train stations. This shift comes after the company announced it would close 20 of its High Street locations due to rising business rates and overall cost increases, according to CEO John Vincent.

Leon has been facing financial challenges, reportedly losing £10 million annually. Vincent, a co-founder who recently reacquired the company from Asda, initiated a major restructuring of the chain's 71 restaurants, which employ 1,000 people, last month by appointing administrators.

The decision to concentrate on transport hubs reflects the changing dynamics of the fast-food market. The traditional High Street model is becoming less profitable for Leon due to increased operating costs. The company anticipates that locations within service stations, airports, and train stations will offer a more sustainable business model.

Leon's struggles highlight the broader challenges facing the UK hospitality sector. The government has stated it is providing a support package to limit bill rises for these businesses. However, Vincent argued that upcoming tax increases are "incredibly toxic" for the industry. He warned that further tax hikes could lead to a decline in food quality as businesses prioritize cost-cutting measures. The end of Covid-era business rates relief in April, coupled with increases in the rateable value of premises, are expected to further strain the sector.

Looking ahead, Leon's success will depend on its ability to effectively capture the market within transport hubs. The company's focus on these locations suggests a belief that convenience and accessibility are key drivers of growth in the current economic climate. The long-term impact of the restructuring and strategic shift remains to be seen, but it underscores the need for businesses to adapt to evolving market conditions and cost pressures.