Asda sells Leon back to founder

Asda has confirmed the sale of Leon Restaurants to its co-founder John Vincent for an undisclosed price.

The deal includes 46 Leon restaurants and 20 UK franchise sites, as well as three in the Netherlands and one in Italy. Around 1,120 Leon staff will transfer to the new ownership.

Asda said the move reflected its strategy to focus on strengthening its core retail operations. 

It added that food service remains a “key differentiator” in the retailer’s wider offer, with more than 300 in-store sites operated in partnership with brands including Greggs, Starbucks, Costa Coffee, Subway, Burger King and McDonald’s.

Leon was sold to Mohsin and Zuber Issa, the owners of EG Group, for £100m in 2021, and became part of Asda two years later. 

According to The Times, industry sources said Vincent may have paid between £30m and £50m for the restaurant chain, which would mean it was sold at a discount.

An Asda spokesperson said: “We would like to thank Leon colleagues for their contribution and hard work during the last two years as part of the Asda business and wish them all the best as they move forward under new ownership.”