Wagamama is contemplating raising prices on its UK menu in the upcoming year. The pan-Asian restaurant chain is considering implementing targeted price hikes due to expected increases in labor, food and beverage, and rental costs. The Times reports that Wagamama foresees a 4% to 5% rise in labor and food and drink expenses, along with a 2% to 3% increase in other costs like rent, excluding energy costs.
This decision coincides with the upcoming 4.1% increment in the minimum wage scheduled for April 2026, where the hourly rate for workers aged 21 and above will reach £12.71. Workers aged 18 to 20 will see a pay raise of 8.5% to £10.85 per hour, while those aged 16 and 17 will receive a minimum of £8 per hour.
Moreover, employer National Insurance contributions surged from 13.8% to 15% in the 2024 Budget, adding more strain on businesses. Wagamama is planning to achieve £8 million in savings next year by optimizing its operations, as per The Times.
A company spokesperson mentioned, “We have consciously refrained from significant price hikes and have instead invested in enhancing our customer experience. This strategy has led to increased footfall and performance exceeding the broader dine-in casual dining market. We will reassess our pricing strategy in 2026, with a firm commitment to offering our customers excellent value for their money.”
The Mirror has reached out to Wagamama for further comments following the disclosure that the company had reduced its workforce by over 2,000 employees during the last financial year, leading to a reduction in headcount from 17,542 to 15,468, mainly due to the sale of Frankie & Benny’s in late 2023.
According to the latest accounts filed with Companies House in October 2025, the Restaurant Group reported a pre-tax loss of £32.2 million for 2024, up from £19.6 million in 2023, although its revenue climbed from £824 million to £868.1 million. The board’s statement in the accounts noted the challenges posed by wage cost increases and emphasized the company’s focus on quality, service, and cost efficiency to maintain margins, alongside investments in new technologies like the Wagamama loyalty scheme, ‘soul club.’