Wagamama is reportedly 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 expenses in 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, while other costs like rent are projected to rise by 2% to 3%. This adjustment coincides 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.
Employees aged 18 to 20 will witness an 8.5% wage increase to £10.85 per hour, while those aged 16 and 17 will receive a minimum wage of £8 per hour. Additionally, National Insurance contributions for employers rose from 13.8% to 15% in the 2024 Budget, adding further strain on businesses.
Wagamama is planning to streamline its operations to save £8 million next year, as reported by The Times. A company spokesperson mentioned a deliberate avoidance of significant price hikes, focusing instead on enhancing the customer experience. Wagamama aims to maintain strong value for customers while reviewing pricing in 2026.
The Mirror has reached out to Wagamama for additional comments following the revelation that over 2,000 jobs were cut during the last financial year, reducing the headcount from 17,542 to 15,468. The Restaurant Group reported a pre-tax loss of £32.2 million for 2024, compared to a £19.6 million loss in 2023, while revenue rose from £824 million to £868.1 million.
The company’s board emphasized the challenges posed by economic factors such as wage increases and the impact of the Autumn Budget statement. Wagamama remains focused on food quality, customer service, and cost management to sustain margins amid the evolving market conditions. Investments in new technology, like the Wagamama loyalty scheme ‘soul club,’ demonstrate the company’s commitment to customer initiatives and operational efficiency.