Leon’s co-founder John Vincent is in talks to buy back the fast food brand from Asda. This could see him regain control of the chain for less than a third of the selling price in 2021.
The entrepreneur, who founded Leon with Henry Dimbleby and Allegra McEvedy in 2004, is apparently in advanced negotiations with Asda – which Leon acquired from the Issa brothers’ EG Group two years ago. Industry insiders believe the deal could be worth between £30m and £50m, compared to the £100m the Issas paid four years ago.
The Issa brothers, best known for building the EG Group petrol station empire, bought Leon in 2021 before transferring it to Asda in 2023 as part of a £2bn refinancing to reduce EG’s heavy debt load.
Under Asda’s leadership, Leon faced increasing criticism for deviating from its original “natural fast food” ethos. Dimbleby, now a leading food policy advocate, recently warned that the chain’s commitment to healthy eating was being “destroyed” and accused its current management of driving sales through “sugar, salt and cheapness” rather than nutritional quality.
If the deal goes through, it would be a return to familiar territory for Vincent – but also a major challenge for the turnaround. Leon’s latest accounts show revenue fell to £62.5m in 2024 from £64.9m, while pre-tax losses narrowed to £8.4m from £19.6m the previous year.
A city source familiar with the negotiations said any new owner would need to undertake a “complete turnaround” to restore the health and profitability of the brand. The chain, which once prided itself on its sustainability credentials and Mediterranean-inspired menu, is struggling to compete in the increasingly crowded fast-casual restaurant market.
The talks come as Asda itself struggles with high debts and increasing competitive pressures. The supermarket, which is jointly owned by the Issa brothers and private equity firm TDR Capital, posted a loss of almost £600 million last year. Financing costs rose 38 percent, reflecting the impact of higher interest rates.
Asda’s market share has also been under pressure from discount rivals Aldi and Lidl, as well as renewed competition from Tesco, Sainsbury’s and Morrisons.
A successful buyback would allow Vincent to restore Leon’s founding mission: “Food that tastes good and does good” – a concept that once earned the chain cult status among health-conscious city professionals.
Although neither Vincent nor Asda have commented publicly on the deal, sources suggest an agreement could be reached soon, setting the stage for one of the most intriguing comeback stories in the UK restaurant sector.
