Leon plans ten more restaurants via bond issue
9 July, 2012
Leon has outlined plans to open ten new restaurants over the next three years as part of major expansion plans via its new bond scheme.
As Peach Report has reported, Leon launched its bond offer as an alternative way of funding its expansion, encourage customer loyalty and support the not-for-profit Leon Foundation. Customers who buy bonds are rewarded with interest payments of 'Leon pounds' that they can spend at its branches, and are entered into draws for Leon-related prizes.
To promote the bond, Leon picked a customer at random at its Strand branch last Thursday (6 July), to be presented with a tray of Leon pounds worth £1,000 to spend with the company (pictured). Similar giveaways will take place at various branches every Thursday throughout July, until applications for the bond close at 5pm on 31 July.
Leon’s innovative scheme is well timed to take advantage of growing anti-bank sentiments among both consumers and businesses. Its promised rates of return—of 15% for an investment of £5,000, repayable after three years—also compare very favourably with savings accounts at the moment.
Leon co-founder and CEO Henry Dimbleby said of the offer: “As trust in the banks dives to ever deeper levels, the age of people power is upon us, where consumers trust their favourite brands above the banks. We love the idea of businesses and customers interacting for both to benefit. Leon can grow and our regulars receive returns that would normally go to a bank.”
He said of Leon’s long-term ambitions: “Our vision is to become an international fast food business, growing through franchise and owned stores. We would like to have a Leon on every high street in the UK but at the same time we will expand carefully and ensure we retain the quality which is at the heart of the brand.”
Co-founder John Vincent added: “Savers can’t get the rates. Banks aren’t lending to businesses. And this is despite the government giving them money to do so. So let’s cut out the middle man.”