Wagamama is reportedly contemplating raising prices on its menu in the UK next year. The pan-Asian restaurant chain has informed investors about potential “selective price increases” in response to expected rises in labor, food and drink, and rent costs.
According to The Times, Wagamama foresees a 4% to 5% increase in labor and food and drink expenses, along with a 2% to 3% rise in other costs like rent, excluding energy costs. This adjustment coincides with the upcoming 4.1% hike in the minimum wage set for April 2026, reaching £12.71 per hour for workers aged 21 and above.
Workers aged 18 to 20 will witness an 8.5% boost in their minimum wage to £10.85 per hour, while those aged 16 and 17 will be entitled to a minimum of £8 per hour.
Meanwhile, employer National Insurance contributions have increased from 13.8% to 15%, adding more financial strain on businesses since the 2024 Budget announcement. Wagamama is strategizing to save £8 million next year through operational streamlining.
In a statement to The Times, a Wagamama spokesperson mentioned their focus on enhancing customer experience without significant price hikes. The company has observed increased customer traffic due to these investments, surpassing the performance of the broader dine-in casual dining market.
Looking ahead to 2026, Wagamama plans to review its pricing strategy while remaining committed to offering customers strong value for their money. The Mirror has reached out to Wagamama for further comments following the disclosure that over 2,000 jobs were cut in the previous financial year, mainly attributed to the sale of Frankie & Benny’s.
Despite recording a pre-tax loss of £32.2 million in 2024, up from £19.6 million in 2023, The Restaurant Group noted a revenue increase from £824 million to £868.1 million, as per its latest accounts filing. The company emphasized its focus on maintaining food quality, customer service, and cost efficiency amidst challenging economic conditions. Additionally, Wagamama continues its measured expansion and investment in technology, such as the new Wagamama loyalty program, ‘soul club’.