EG Group to open 10 new Leon restaurants this year

Leon Restaurants owner EG Group has said it plans to open a further 10 sites under the brand this year.

The petrol station giant, which bought Leon in April, said the restaurant group’s performance had been “pleasing” during its latest financial quarter.

EG Group’s revenue rose almost 60% to £4.7b for the three months to 30 June with profits in its overall foodservice arm rising 231% to £11m, boosted by the easing of lockdown restrictions.

Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 24% to £204m.

Leon’s expansion will include the opening of its first drive-through restaurant in West Yorkshire this autumn.

The healthy fast food brand trades from more than 70 restaurants and EG Group are aiming to open around 20 new sites per year from 2022, including multiple drive-through locations.

“The resilience of our business model has been demonstrated during the pandemic, and we have emerged as an even stronger business as we enter the second half of the year with confidence,” EG Group co-founders Zuber and Mohsin Issa said in a statement.

The Issas bought supermarket chain Asda for £6.8b this year and also own the Stanley House Hotel & Spa in Lancashire. They made an unsuccessful bid to take over Caffè Nero last year.