Wagamama is reportedly 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 expenses for labor, food and beverages, and rental costs.
According to 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 including rent, excluding energy costs. This decision comes as the minimum wage is set to go up by 4.1% in April 2026, reaching £12.71 per hour for workers aged 21 and above.
Employees aged 18 to 20 will witness an 8.5% wage hike to £10.85 per hour, while those aged 16 and 17 will receive a minimum wage of £8 per hour. Moreover, National Insurance contributions for employers surged from 13.8% to 15% in the 2024 Budget, adding further financial strain on businesses.
Wagamama is planning to achieve £8 million in savings next year through operational streamlining, as reported by The Times. A company spokesperson mentioned that they have been cautious in implementing significant price hikes, focusing instead on enhancing the customer experience. The company has observed increased patronage due to these investments, outperforming the broader dine-in casual dining market.
While keeping a close eye on providing customers with good value for their money, Wagamama intends to review its pricing strategy in 2026. The Mirror has reached out to Wagamama for additional comments following the disclosure that over 2,000 jobs were cut in the latest 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.
Despite posting a pre-tax loss of £32.2 million in 2024, up from £19.6 million in 2023, the Restaurant Group saw its revenue climb from £824 million to £868.1 million, according to its recent filings with Companies House in October 2025. The company aims to maintain a focus on food quality, excellent customer service, and efficient cost management amidst a challenging economic environment.
With a measured approach to new store openings and investments in technology such as the Wagamama loyalty scheme ‘soul club,’ the company remains committed to enhancing customer initiatives.