Leon founder warns Labour has ‘killed the restaurant industry’ as closures surge – London Business News | London Wallet

The founder of Leon, John Vincent, has accused the Labour Party of “totally killing the restaurant industry”, warning that Britain’s high streets are facing terminal decline under the weight of rising costs.

In an interview with Times Radio, Vincent said the combination of higher taxes and employment costs had pushed the sector to breaking point. “The high street is dead,” he said, dismissing suggestions that the crisis is being driven by shifts in consumer behaviour.

“I spoke to the guy that owns one of the biggest competitors of Leon. He said restaurants are done. Everyone knows restaurants are done,” he said.

“This is not the market that’s doing this. This is the Government. It’s not the consumer that doesn’t want to eat in restaurants. It is the Government who is totally killing the restaurant industry.”

Instead, he pointed to mounting financial pressures on employers, with hospitality businesses facing steep increases in the national minimum wage, the National Living Wage, National Insurance contributions, and pension auto-enrolment costs.

Industry data paints a bleak picture. More than 1,000 restaurants are now closing each year across Britain, while a survey of over 20,000 businesses suggests the worst may yet be to come. Around two-thirds of hospitality firms expect to cut jobs following April’s tax increases, and roughly one in seven fear they may be forced to shut their doors entirely.

The British Retail Consortium estimates that higher National Insurance and wage rises alone have added £5 billion annually to business costs, intensifying pressure on already thin margins in the sector.

Vincent’s intervention carries particular weight given his history with Leon. He sold the chain in 2021 to the Issa brothers for £100 million, only to buy it back for a fraction of that price — between £30 million and £50 million — after the business fell into difficulty.

The company subsequently entered administration, with Quantuma appointed to oversee the process, and later confirmed the closure of 20 restaurants.

His warning adds to growing concern that Britain’s hospitality sector is entering a period of sustained contraction, with rising costs, weak growth and policy pressures combining to reshape — and potentially shrink — the high street for years to come.

A Labour spokesperson said ministers have “the right economic plan”.

They added: “We’re reforming business rates to back hospitality.”