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.
