‘Our focus is on protecting the culture that makes Leon special’

The integration of one established business into another will usually have its teething problems, but Leon’s managing director Nick Ayerst is confident that EG Group is the right operator to move the brand forward.

The healthy-fast food brand was acquired by multi-billion-pound forecourt operator earlier this year, with EG Group now supporting Leon’s management team “to deliver the brand as it was created and developed over the years”. He described the business, run by the Issa brothers, as being “the guardians” of the brand, who will continue its development in the future.

According to Ayerst, the Issa brothers have been long-term fans of Leon, and what it stands for, since coming across its Bankside restaurant a number of years ago. “Foodservice has been a growing part of the EG Group business for a number of years and it is a natural evolution for EG to become owners of a brand that they admired and felt had huge future potential,” he says.

The addition of Leon also gives them a broad and balanced range of brands in which to invest in new locations, with Leon’s management team being supported to develop and grow the healthy fast-food brand.

Leon has, not surprisingly, been conscious of considering the needs of its people in all this. “The transfer of ownership of a business can be challenging at any time, even more so on the back the pandemic, which was a difficult 15 months for everyone, personally as well as business wise - we need to be doubly careful that we communicate well and take people with us,” says Ayerst.

He believes the investment already being seen in refurbishments, alongside digital innovation, the commitment to new openings, and the career opportunities that presents, is a positive sign of things to come for Leon’s team members. “Our focus is on protecting the culture that makes Leon special whilst absorbing new ideas that will help us grow and make us even better.”

Opportunities ahead

Founded by John Vincent, Henry Dimbleby and Allegra McEvedy in 2004, Leon now has around 70 restaurants, including 42 company-owned sites and 29 franchised units across the UK and Europe. And there are plans to expand its reach through its new ownership structure.

Pre-pandemic, and on the back of two strong years in 2018 and 2019, Leon had multiple openings planned for 2020. With EG Group’s investment it has resurrected many of these deals, added others, and now has a robust pipeline of openings for 2021/22 and beyond, says Ayerst. “We are likely to open 10-12 new restaurants this year, including at least one drive-thru, and we are trialling some small footprint formats too.”

News of its first drive-thru opening was revealed in June and is said to be the first of many. The debut 2,000 sq ft site – which Leon had, in fact, been in discussions with EG Group on for five years – will open in West Yorkshire this autumn.

Ayerst says EG Group’s experience with foodservice offerings in a forecourt setting, and in drive-thrus in the UK, provided “a great opportunity to fast-track years of learning about the practicalities of operating in this marketplace for Leon”.

But the wider travel space is far from a new experience for the brand, which is already represented at a number of key motorway service stations, at Heathrow and Stansted Airports and at many major railway stations. “EG Group’s approximately 400 forecourts open up a new channel for travel, and we are of course looking at how we can leverage the brand in this space, either with full format restaurants in high footfall locations or exploring an on-the-go offer.”

Evolution of tech

With space for 50 covers, the debut drive-thru restaurant will operate on a digital-first basis, with kiosks for ordering and payment that features shopper recognition technology, which will recognise those customers already signed up to its ‘smart online’ ordering platform.

Increasing use of technology is an example of an element of Leon’s business that will benefit from the experience that EG Group has with digital menus and kiosks at its forecourt sites, from a technology, design and customer journey perspective. Ayerst said the new ownership has already enabled investment in many of the ideas that Leon has long been nurturing, such as the roll out of digital kiosk ordering, kitchen improvements and refurbishments.

Leon began trialling kiosk ordering in early 2020, just before the pandemic. While it put those plans on hold to focus on its involvement in the Feed NHS initiative, and turning its restaurants into shops when lockdown hit, once the peak of disruption to supply chains calmed down it turned its attention back to them.

Thanks, in part, to other brands’ existing use of digital kiosks, customers adopted the new technology with no issues, he says, with benefits including higher average transaction values, and the opportunity to connect with its guests digitally. The accelerated roll out of these kiosks is now in progress.

Asked how Leon will ensure the same hospitable welcome for guests using a digital kiosk, rather than ordering face-to-face, Ayerst explains that its team members have been redeployed to ‘host’ the front of house area, making sure all guests are comfortable and know what to do. “We’ve also found that the team are able to chat and engage with our guests a little more when table clearing,” he says.

“Behind the counter they are able to make sure that orders are passed over with the familiar Leon smile and customer service whilst making sure that our guests have everything they need. We see digital as an enabler for our team to be able to deliver the Leon experience every time, rather than a way to cut costs.”

Direction of travel

Although the travel space will be a key focus for Leon and EG Group in terms of expansion, its growth will be balanced across a number of routes to market, “most definitely with more traditional Leon formats”, as well as drive-thrus. The brand is also looking to explore new locations, including more residential and outer London locations.

Leon is also keen to grow its successful grocery brand and has several new lines under development that will be launching in late September. And it has recently launched its Happy Guts cookbook and is starting to plan for future book launches, as well as developing its homeware range which is currently sold in John Lewis.

Sustainability and the goal to become a net zero carbon business by 2030 are also significant focuses for the brand. It has already made commitments across every aspect of Leon, from 100% renewable energy sources, using locally sourced and in season produce, to minimising single use plastics and joining food waste apps such as Too Good To Go. It will also continue to innovate its menu, with the additional of new plant-based dishes, says Ayerst.

When it comes to its food, he says Leon wants to make its brand accessible to as many people as possible. “Anywhere people gather and have a passion for food that tastes good and does you good we feel that there is an opportunity. We just may not be able to get to them all immediately.”