Wagamama is contemplating raising prices on its UK menu in the upcoming year. The popular pan-Asian restaurant chain is exploring the possibility of implementing targeted price hikes due to expected increases in costs associated with labor, food and beverages, and rent.
According to a report by The Times, Wagamama foresees a 4% to 5% rise in labor and food and beverage expenses, and a 2% to 3% uptick in other costs like rent, excluding energy expenses. This decision aligns with the backdrop of a 4.1% rise in the minimum wage slated for April 2026, which will elevate the hourly rate for workers aged 21 and above to £12.71.
Additionally, workers aged 18 to 20 will witness an 8.5% surge in their minimum wage to £10.85 per hour, while those aged 16 and 17 must receive a minimum of £8 hourly. Meanwhile, National Insurance contributions for employers climbed from 13.8% to 15% in the 2024 Budget, adding strain on businesses.
To mitigate these challenges, Wagamama plans to optimize its operations to save £8 million next year. A company spokesperson emphasized their commitment to enhancing customer experience and value, indicating that pricing adjustments will be reviewed in 2026 while maintaining focus on delivering compelling value to customers.
The Mirror has reached out to Wagamama for further comments following the revelation that the company had downsized its workforce by over 2,000 jobs during the latest financial year, reducing its headcount from 17,542 to 15,468 primarily due to the sale of Frankie & Benny’s in late 2023. Despite recording a pre-tax loss of £32.2 million in 2024, up from £19.6 million in 2023, the Restaurant Group’s revenue surged from £824 million to £868.1 million.
Looking ahead, the company remains dedicated to quality food and exceptional customer service while efficiently managing costs to uphold margins. Wagamama continues its strategic approach to new store openings and invests in innovative technologies like the Wagamama loyalty scheme, ‘soul club,’ to enhance customer engagement and retention.