Wagamama is contemplating raising prices on its UK menu in the upcoming year. The pan-Asian restaurant chain has informed investors about potential “selective price increases” due to expected higher costs for labor, food and beverages, and rent.
According to reports from The Times, Wagamama foresees a 4% to 5% increase in labor and food and beverage costs, and a 2% to 3% rise in other expenses like rent, excluding energy costs. This move aligns with the upcoming 4.1% hike in the minimum wage in April 2026, pushing the hourly rate for workers aged 21 and over to £12.71.
Meanwhile, National Insurance contributions by employers surged from 13.8% to 15% in the 2024 Budget, adding further strain on businesses. Wagamama is planning to streamline operations to save £8 million next year, as disclosed by a company spokesperson.
The spokesperson mentioned, “We have consciously avoided significant price hikes and instead focused on enhancing our customer offerings. This strategy has led to increased customer traffic and outperformance within the dine-in casual dining sector. We will reassess our pricing in 2026, prioritizing strong value for our customers.”
The Mirror has reached out to Wagamama for additional comments following the revelation that over 2,000 jobs were cut during the latest financial year, reducing the headcount from 17,542 to 15,468 primarily due to the sale of Frankie & Benny’s in late 2023.
Despite recording a pre-tax loss of £32.2 million for 2024, up from £19.6 million in 2023, the Restaurant Group saw an increase in revenue from £824 million to £868.1 million, as per its latest accounts filed with Companies House in October 2025.
The board’s statement in the accounts noted, “In 2024, we observed a reduction in food inflation in the UK market, although there was continued upward pressure on wage costs due to a substantial increase in the National Minimum Wage. We remain focused on maintaining margins by offering quality food and excellent customer service amidst the challenging economic environment.
Our approach to new store openings remains measured, with ongoing investments in technology to support customer initiatives like the new Wagamama loyalty program, ‘soul club’.”