"Leon, a company owned by Asda, undergoes job losses for hundreds of employees due to the impact of remote work"
In the face of a challenging UK economy throughout 2024, Leon, the fast-food chain co-founded by Henry Dimbleby, reported a 3.9% downturn in sales to £62.5m. This decline was particularly noticeable in their office-centric restaurants, which have seen a slower recovery due to the working-from-home trend.
The hospitality sector, including Leon, has been impacted by this shift in work patterns, particularly restaurants near me based in office-centric locations. This impact was further exacerbated by rail and tube strikes, leading to lower footfall due to the proximity of Leon's restaurants to train stations.
In response to these challenges, Leon has implemented self-service checkouts in its restaurants, following the lead of other fast-food chains and major supermarkets. This move is aimed at reducing the number of front-of-house staff employed, as part of the company's efforts to control its cost base.
Leon, with a significant presence in the Square Mile of London, has multiple locations including Cheapside, Liverpool Street, Cannon Street, Moorgate, and Ludgate. Despite the difficulties faced, the company reported losses of £8.4m in 2024, a significant reduction compared to the £12.5m loss reported the previous year.
The hospitality sector has been under pressure to find cost savings due to increased employer National Insurance Contributions, a measure implemented by Chancellor Rachel Reeves earlier this year. In line with this, Leon has reduced its headcount by 17% or 224 jobs, leaving 1,120 employees.
Looking ahead, Leon plans to continue reviewing its restaurant performance and exploring new formats and opportunities. The company remains optimistic about its future, despite the challenges faced in 2024. Inflationary pressures were felt particularly with electricity costs and costs of sales, but Leon is determined to navigate these challenges and continue providing quality food to its customers.
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