Wagamama is contemplating raising prices on its menu in the UK next year. The pan-Asian restaurant chain has informed investors about potential “selective price increases” due to expected higher costs in labor, food and beverages, and rent.
According to The Times, Wagamama foresees a 4% to 5% increase in labor and food costs, and a 2% to 3% rise in other expenses such as rent, excluding energy costs. This decision coincides with the upcoming 4.1% minimum wage hike in April 2026, where workers aged 21 and above will receive £12.71 per hour.
In a bid to streamline operations and save £8 million in the following year, Wagamama is planning cost-cutting measures. The company spokesperson emphasized a focus on enhancing customer experience and value, with an ongoing review of pricing strategies throughout 2026.
The recent increase in National Insurance contributions for employers from 13.8% to 15% in the 2024 Budget has further strained businesses. Wagamama aims to balance its financial performance while providing competitive pricing for its customers.
Wagamama’s parent company confirmed a reduction in workforce during the previous financial year, citing the sale of Frankie & Benny’s as a key factor. Despite recording a pre-tax loss of £32.2 million in 2024, The Restaurant Group saw a revenue boost from £824 million to £868.1 million.
Looking ahead, Wagamama remains focused on quality, service excellence, and efficient cost management to sustain profitability amidst challenging economic conditions. Investments in technology, including the new Wagamama loyalty program ‘soul club,’ underscore the brand’s commitment to customer satisfaction and innovation.