Wagamama is contemplating raising prices on its UK menu next year due to expected increases in labor, food and drink, and rent costs. The restaurant chain is considering implementing “selective price increases” as outlined to investors, with The Times reporting projected rises of 4% to 5% for labor and food and drink costs, and 2% to 3% for other expenses like rent, excluding energy costs.
This decision comes as the minimum wage is set to rise by 4.1% in April 2026, reaching £12.71 per hour for workers aged 21 and over. Workers aged 18 to 20 will see a wage increase of 8.5% to £10.85 per hour, while those aged 16 and 17 will have a minimum wage of £8 per hour.
National Insurance contributions for employers increased from 13.8% to 15% in the 2024 Budget, adding more financial pressure on businesses. Wagamama is planning to save £8 million next year through operational streamlining efforts, aiming to enhance customer offerings while maintaining competitive pricing.
The company spokesperson stated, “We have avoided significant price hikes by investing in our customer experience, resulting in improved volumes and outperforming the casual dining market. We will assess our pricing strategy in 2026 while ensuring our customers receive good value for their money.”
The Mirror has reached out to Wagamama for further comments following the owner’s revelation of over 2,000 job cuts in the past financial year, reducing the headcount from 17,542 to 15,468 mainly due 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 an increase in revenue from £824 million to £868.1 million.
The company’s board highlighted in its accounts that while food inflation eased in the UK market in 2024, wage costs continued to rise due to the National Minimum Wage increase. Wagamama remains focused on food quality, customer service, and cost efficiency to sustain margins, with a cautious approach to new store openings and investment in technology, such as the new Wagamama loyalty scheme, ‘soul club’.
