Leon could be forced to close restaurants and cut jobs as the fast-food chain continues to deal with the financial fallout of the coronavirus pandemic.
Co-founder John Vincent, who recently bought back the business he helped establish, said he is in discussions with property owners about the future of loss-making sites.
The chain operates more than 70 restaurants across Britain, with Mr Vincent warning unprofitable branches may be forced to shut down for good and jobs axed.
It also runs 29 franchise locations at transport hubs and airports and employs around 1,120 people.
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Mr Vincent said he intends to reshape the brand following his return to ownership.
"Then I want to recreate Leon as the Earth's favourite fast food.
"Chefs are not in touch with the earth. Understanding the earth is love."
Leon, which has traded on British high streets for over twenty years, is entering a period of uncertainty as restructuring plans begin.
The co-founder reacquired the business in October after it was purchased by the Issa brothers, who also own Asda, for £100million in 2021.
The buyback price was reported to be between £30million and £50million.
Leon stores could be at risk of closure
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The figures indicate a sharp fall in the chain's valuation since its previous sale.
Leon's financial performance has weakened considerably in recent years.
Revenue fell from £64.9million in 2023 to £62.5million in 2024.
The business reported a pre-tax loss of £8.38million during the same period.
The results reflect broader challenges across the hospitality sector as customer spending patterns continue to shift after the pandemic.
The difference between the 2021 sale price and the more recent repurchase figure shows how the brand’s position changed under its previous ownership.
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| GB NEWSMr Vincent has been critical of how the chain was run during the Asda ownership period.
He attributed the decline to cost-cutting measures that he said damaged sales.
"They realised that sales are going backwards, so they cut labour or they cut cost of goods. They took the halloumi from a nice bit to a crispy bit to save money. And, guess what? They make less money."
He said that reducing product quality to achieve savings weakened the brand's appeal.
Mr Vincent said the restaurant industry requires different leadership approaches in order to grow.
"The accountants take over, whereas we need the Steve Jobses and we need the Elon Musks to be in charge."
He said creative direction should guide the company’s recovery.
Mr Vincent maintains that lowering ingredient standards was counterproductive and drove customers away.
He has set out several changes he plans to introduce as part of the turnaround strategy.
Menus will be simplified with fewer items, although popular dishes such as the bestselling chicken satay rice box will stay.
The news will come as a worry to Leon fans
|GETTY
Hygiene procedures will be strengthened with managers required to submit daily photographs of cleaning work through a WhatsApp group.
The future of Leon's automated ordering systems has not yet been decided.
"My instinct was to lose them, and I may well do, but I have found some customers don't want to talk to a human. So I am mulling over that little conundrum", he said.
His remarks indicate the kiosks may remain depending on customer usage.
Leon has been approached for comment about the proposed changes.
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