Leon Founder Claims Government Tax Burden is Killing Restaurant Industry

John Vincent, the founder and current owner of the fast-food chain Leon, has accused the UK government of killing the restaurant industry through a crushing tax burden. Vincent stated that the current environment has made the survival of hospitality businesses nearly impossible, claiming that everyone knows restaurants are done.

The warnings come as Leon enters administration, appointing Quantuma as its administrator. As part of a turnaround plan, the company has announced the closure of 20 restaurants and subsequent job cuts. To mitigate the impact on staff, Leon stated it would work with cafe chain Pret a Manger to offer redundant workers new roles.

Impact of Tax Regimes and Operating Costs

Vincent described the current fiscal environment as an incredibly toxic tax regime that is impacting the industry. He told the BBC’s Big Boss Interview podcast that 36p in every pound is going to the government, leaving Leon with negative 10p after expenses.

The founder highlighted several specific financial pressures contributing to the decline:

• Value Added Tax (VAT): Vincent noted that while supermarket purchases are often exempt from VAT, customers at Leon pay 20% VAT.
• Business Rates: He stated that business rates, which previously accounted for 4% of sales, have risen to between 8% and 10% of sales.
• National Insurance: Vincent reported that National Insurance costs have increased by an additional 3% of sales.

Vincent argued that because the hospitality industry typically operates on profit margins of around 3% after depreciation and head office costs, these increases make it impossible for most businesses to remain profitable. He claimed that the only survivors will be those selling c–p food that’s not very good quality to maintain viability.

Broader Hospitality Sector Crisis

The struggles at Leon reflect a wider trend across the UK high street. A survey of more than 20,000 businesses revealed that two-thirds of hospitality firms intend to cut jobs due to tax rises effective April 2026, while one in seven firms expect to shut down entirely.

Additional findings from the survey indicate that more than half of hospitality firms will cancel investment plans, and 42% will reduce their trading hours. Vincent further noted that he receives daily calls from long-term restaurant owners of 40 years who are now facing insolvency.

The sector’s volatility has been compounded by the fact that restaurants and hotels were excluded from a £300 million emergency package provided to pubs earlier in the year following Budget changes to business rates.

Leon’s Ownership History and Financial Decline

The financial trajectory of Leon has seen significant fluctuations in valuation over the last several years. John Vincent co-founded the business in 2004 alongside Henry Dimbleby and Allegra McEvedy – Heathcliff O’Malley.

In 2021, Vincent sold the chain to billionaire petrol station tycoons Mohsin and Zuber Issa for £100 million. The Issa brothers subsequently offloaded the business to the supermarket chain Asda in 2023.

In October 2025, Vincent bought back Leon for a sum between £30 million and £50 million—less than half of the price he received during the 2021 sale. Despite his pledge to mount a turnaround, the company plunged into administration weeks after the acquisition.

While Vincent has focused heavily on the government’s tax policies, he also attributed the loss of custom to changing work patterns resulting from the Covid-19 pandemic.

The high street is dead. I spoke to the guy that owns one of the biggest competitors of Leon. He said restaurants are done. Everyone knows restaurants are done. This is not the market that’s doing this. This is the government.

John Vincent