Leon has slashed hundreds of positions after describing a “challenging” year marked by soaring cost inflation and weakened consumer expenditure.
The Asda-owned fast-food operator reduced its workforce by 17 per cent, cutting 224 roles to leave 1,120 employees throughout 2024, according to its latest filings, as it attempted to tackle substantial losses, as reported by City AM.
The company, which was co-established by Henry Dimbleby, son of seasoned BBC presenter David Dimbleby, recorded a 3.9 per cent decline in turnover to £62.5m, coupled with losses of £8.4m, representing a considerable improvement from the £12.5m deficit reported in the prior year.
“The UK economy was challenging throughout 2024, with its impacts felt across consumer spending,” Leon said.
“This again led to inflationary pressures, particularly seen with electricity costs and costs of sales.”
“Within the year, we have continued to actively control our cost base and have seen a significant reduction year on year.”
Leon also noted that operations had been “further affected” by rail and underground strikes, which caused reduced footfall owing to the proximity of its outlets to railway stations.
“Furthermore, the working-from-home trend has impacted many Leon restaurants, particularly ones based in office-centric locations, and these have seen a slower recovery.”
Hospitality turns to automation to slash costs
From 2023 onwards, Leon has pursued an aggressive deployment of self-service terminals across its establishments, following the lead of other quick-service chains including McDonalds and KFC. The shift has enabled the hospitality industry to reduce front-of-house staffing levels whilst boosting order capacity, mirroring the approach taken by major supermarket chains who adopted the technology years earlier.
Hospitality businesses have faced mounting pressure to identify cost reductions after Chancellor Rachel Reeves delivered a substantial tax blow through higher employer National Insurance Contributions earlier this year.
Leon stated it will “continue to review the existing estate performance, and explore new formats and opportunities.”
Established on London’s Carnaby Street in 2004, Leon has expanded to become one of the City’s largest restaurant chains, operating outlets in Cheapside, Liverpool Street, Cannon Street, Moorgate and Ludgate.
