Wagamama is contemplating raising prices on its UK menu next year, citing expected increases in labor, food and drink, and rent costs. The pan-Asian restaurant chain is considering implementing “selective price increases” to offset these rising expenses, as reported by The Times. Wagamama foresees a 4% to 5% uptick in labor and food and drink costs and a 2% to 3% rise in other expenses like rent.
This potential move aligns with the upcoming 4.1% hike in the minimum wage scheduled for April 2026. Workers aged 21 and over will see their hourly rate increase to £12.71. Additionally, employees aged 18 to 20 are set to receive a minimum wage boost of 8.5% to £10.85 per hour, while those aged 16 and 17 will be entitled to a minimum of £8 per hour.
Amidst these cost pressures, National Insurance contributions for employers have climbed from 13.8% to 15% in the 2024 Budget, placing further strain on businesses. Wagamama is planning operational streamlining to save £8 million in the coming year, as stated by a company spokesperson. The focus remains on enhancing customer value, with a commitment to reviewing pricing strategies in 2026 while delivering a strong value proposition to customers.
The Mirror has reached out to Wagamama for additional insights, following the announcement that the company had reduced its headcount from 17,542 to 15,468 in the previous year, largely attributed to the sale of Frankie & Benny’s. Despite 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 recent filings with Companies House.
The company’s board emphasized the challenges posed by wage cost increases and economic uncertainties, underscoring their commitment to food quality, customer service, and cost-efficiency. Wagamama continues to cautiously expand its store network while investing in technology initiatives like the new Wagamama loyalty scheme, ‘soul club.’