Highlights
- Leon makes only one or two pence per pound while government takes 36p in taxes.
- Suppliers adding surcharges to offset fuel cost increases from Iran conflict.
- Chain recently closed 23 restaurants after administration and 200 job losses.
Food suppliers are now adding extra charges to cover the cost of fuel, which has gone up because of the war in Iran.
Vincent called this a "Donald Trump surcharge". He explained that Britain's food system depends heavily on oil because ingredients travel long distances from farms to warehouses and then to restaurants.
Growing food in cold countries like the UK also needs heated greenhouses during winter, which all uses fuel.
Vincent noted that he would put £2.5 million of his own money into the business he created in 2004 to help it cope with "whatever shock" the Middle East war brings to food supplies.
He warned that the Labour government's decision to increase taxes on businesses, including higher business rates and National Insurance, was making things harder and pushing prices up for customers.
"You put National Insurance up, you put business rates up and then businesses lose £10m a year, not because of the market only, but because of government taxation," he added . "You can't put all the costs up like wages and expect prices not to go up."
Rebuilding after collapse
Leon is trying to recover after a tough time that led to more than 200 people losing their jobs.
The restaurant chain went into administration in December, fighting to stay open just one month after Vincent bought it back from Asda.
The company shut down 23 restaurants this week as part of fixing the business. Workers who lost their jobs got the chance to apply for positions at Pret a Manger. This was the second time Leon needed special help to reorganize.
The first time was during the pandemic when previous owner EG Group had to restructure in 2020.
Vincent wants to bring back Leon's reputation for selling healthier food. The chain now works with The Menu Partners to buy directly from farmers and use fewer processed ingredients.
Vincent noted that watching Leon struggle under Asda ownership felt "personal" when he walked into a store and saw broken screens and staff not paying attention to customers.
