Wagamama is contemplating raising prices on its UK menu next year in response to expected increases in labor, food and drink, and rent costs. The pan-Asian restaurant chain informed investors about potential “selective price increases” as it foresees a rise of 4% to 5% in labor and food and drink expenses, while rent costs, excluding energy, could go up by 2% to 3%.
This decision aligns with the upcoming 4.1% minimum wage hike in April 2026, which will set the hourly rate for workers aged 21 and above at £12.71. Additionally, workers aged 18 to 20 will witness an 8.5% increase to £10.85 per hour, and those aged 16 and 17 will see a minimum wage of £8 per hour.
Simultaneously, employer National Insurance contributions surged from 13.8% to 15% in the 2024 Budget, adding further strain on businesses. Wagamama aims to save £8 million next year by streamlining operations, focusing on enhancing customer experience and value for money.
The company’s performance has shown positive results, with increased volumes and outpacing the broader dine-in casual dining market. Wagamama plans to reassess pricing in 2026 while maintaining its commitment to providing customers with strong value.
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, primarily due to the sale of Frankie & Benny’s in late 2023. Despite a pre-tax loss of £32.2 million in 2024, up from £19.6 million in 2023, the Restaurant Group saw revenue growth 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 highlights the challenges faced in 2024, including wage cost pressures and economic uncertainties. However, the focus remains on quality, customer service, and cost management to sustain margins amid a challenging economic environment. Investment in technology, such as the new Wagamama loyalty scheme ‘soul club,’ showcases the company’s commitment to customer-centric initiatives.