Wagamama is contemplating raising prices on its UK menu next year. The pan-Asian restaurant chain has informed investors about potential “selective price increases” in response to expected higher costs for labor, food, beverages, and rent.
According to The Times, Wagamama foresees a 4% to 5% increase in labor and food costs, and a 2% to 3% rise in other expenses like rent, excluding energy costs. This move coincides with the upcoming 4.1% rise in the minimum wage in April 2026, with hourly rates for workers aged 21 and over set to reach £12.71.
The restaurant industry faces additional challenges as National Insurance contributions for employers increased from 13.8% to 15% in the 2024 Budget. To counterbalance these escalating costs, Wagamama plans to streamline its operations to save £8 million next year.
A Wagamama spokesperson stated that the company has prioritized enhancing its customer experience over significant price hikes. The focus remains on delivering value for money to customers, with a pricing review scheduled for 2026.
The Mirror reached out to Wagamama for further comments following the revelation that the company had downsized its workforce by over 2,000 employees in the past financial year. This reduction, from 17,542 to 15,468 employees, was primarily attributed to the sale of Frankie & Benny’s in late 2023.
Despite recording a pre-tax loss of £32.2 million in 2024, an increase from £19.6 million in 2023, the Restaurant Group witnessed revenue growth from £824 million to £868.1 million. The company remains focused on maintaining margins by emphasizing food quality, customer service, and cost efficiency amid a challenging economic environment.
Moreover, Wagamama continues its strategic approach to new store openings while investing in technology, such as the Wagamama loyalty scheme ‘soul club,’ to support customer engagement initiatives.