Wagamama is contemplating raising prices on its UK menu next year, according to reports. The pan-Asian restaurant chain has informed investors about potential “selective price increases” in response to expected higher costs for labor, food and beverages, and rent.
As reported by The Times, Wagamama foresees a 4% to 5% increase in labor and food and drink costs, and a 2% to 3% rise in other expenses such as rent, excluding energy costs. This decision aligns with the upcoming 4.1% minimum wage hike in April 2026, boosting the hourly rate for workers aged 21 and above to £12.71.
For workers aged 18 to 20, the minimum wage will surge by 8.5% to £10.85 per hour, while those aged 16 and 17 will receive a minimum of £8 per hour.
Meanwhile, National Insurance contributions for employers escalated from 13.8% to 15% in the 2024 Budget, adding pressure on businesses.
To enhance cost-efficiency, Wagamama aims to save £8 million next year by streamlining operations. A company spokesperson emphasized a strategic focus on customer value and investment in customer experience, leading to improved performance compared to the wider dine-in casual dining market.
Wagamama intends to review its pricing strategy in 2026, prioritizing customer value. The Mirror has reached out to Wagamama for further comments following its owner’s disclosure of more than 2,000 job cuts during the last financial year. The reduction in headcount from 17,542 to 15,468 was primarily attributed to the sale of Frankie & Benny’s in late 2023.
The Restaurant Group reported a pre-tax loss of £32.2 million for 2024, up from £19.6 million in 2023, despite a revenue increase from £824 million to £868.1 million. The company’s board acknowledged the ongoing economic challenges but affirmed a commitment to quality, customer service, and efficient cost management to sustain margins.
Furthermore, Wagamama continues its measured approach to new store openings while investing in technology, including the new Wagamama loyalty scheme ‘soul club’, to support customer engagement initiatives.