Indian-origin billionaire brothers Mohsin and Zuber Issa
have purchased Leon, a renowned British fast-food chain, as part of their plan
to expand their foodservice operations in the United Kingdom. As part of their
EG Group business, the Issa brothers, whose parents immigrated to the UK from
Gujarat in the 1970s, own the Euro Garages chain of petrol stations. As part of
their plan to grow their non-fuel business, they bought the leading UK retail
chain Asda from the US owners Walmart last year.
Leon, founded in 2004 by John Vincent, Henry Dimbleby, and
chef Allegra McEvedy, is a “naturally quick food” concept with an emphasis on
making a balanced menu, that tastes good while also being sustainable. The
purchase is expected to be worth £100 million pounds. The EG Group's
co-founders and co-CEOs, Mohsin and Zuber Issa, expressed their admiration for
the organization that John and the Leon team have built over the years, and
they fully believe that their culture and values are very close to ours Issas’.
“The Leon acquisition provides EG Group with a fantastic opportunity to further
grow the menu offer, different concession models, including drive-throughs,
which will allow us to greatly expand our current network by pursuing
opportunities across our own sites as well as other strategic locations,” they
said.
Leon has a strong presence in London and other major cities
around the UK, with a network of over 70 restaurants, including 42
company-owned restaurants run on leasehold sites. It also has 29 franchised
locations in the UK and five other European markets, primarily the Netherlands,
at important strategic transportation centers (primarily airports and train stations).
Leon has also made itself available to customers at home, and its branded
cookbooks, own-brand groceries, and home delivery ready meals create
considerable sales.
“Parting company with the business I created 17 years ago in
Carnaby Street is in some respects a sad day for me (London). But over the last
few years, I've had the privilege of getting to meet Mohsin and Zuber. They've
been loyal Leon clients, going out of their way to eat here anytime they come
to London,” John Vincent said. "They are honorable, hardworking
businesspeople who are committed to preserving and strengthening the values and
culture that we have developed at Leon, a company that bears my father's name
above the entrance." "Mohsin and Zuber will not only be excellent
custodians of the Leon brand, but through EG Group they have the ambition,
investment appetite, foodservice experience, and network scope to carry Leon to
many more people and locations," he said, adding that he expects the brand
to "flourish" and grow its appeal outside of London under the new
ownership.
EG Group said it currently runs over 700 foodservice stores
in the UK and Ireland, with 310 of them operating from standalone locations,
prior to the addition of the Leon store network. Despite the effect of Covid-19,
the group said its foodservice division will account for 46% of the UK and
Ireland division's gross profit in 2020. Other third-party foodservice brands
in the group's portfolio include Starbucks, KFC, Burger King, Greggs, Sbarro,
Cinnabon, and Subway. The Issa brothers added, "EG Group continues to find
innovative partnerships and acquisitions that complement our current customer
offer and enable us to remain at the forefront of market trends, particularly
in the foodservice industry."
“We are bolstering our own place in the fast-growing
contemporary foodservice industry by investing in Leon. This merger advances
our broader commercial strategies, aligns with our commitment to be a global
foodservice operator, and adds financial benefit to our underlying business”,
the Issa brothers added. The EG Group, established in 2001 by the Issa family,
employs over 44,000 employees across 6,000 locations in Europe, the United
States, and Australia. In the Queen's Birthday Honors List 2020, the twins,
Mohsin and Zuber, were each awarded a CBE for their contributions to industry
and charity.