Wagamama is contemplating raising prices on its menu in the UK for the upcoming year. The pan-Asian restaurant chain is discussing potential “selective price increases” with investors due to expected rises in labor, food and beverage, and rent costs.
According to The Times, Wagamama foresees a 4% to 5% increase in labor and food and beverage expenses, and a 2% to 3% rise in other costs like rent, excluding energy expenses. This decision coincides with the upcoming 4.1% minimum wage hike in April 2026, which will set the hourly rate for employees aged 21 and above at £12.71.
Employees aged 18 to 20 will witness an 8.5% minimum wage boost to £10.85 per hour, while those aged 16 and 17 will see a minimum wage requirement of £8 per hour.
In the meantime, employer National Insurance contributions have climbed from 13.8% to 15% in the 2024 Budget, creating additional strain on businesses. Wagamama is reportedly aiming to save £8 million through operational streamlining next year.
A Wagamama spokesperson mentioned, “We have intentionally refrained from significant price hikes and have instead invested in enhancing our customer experience. Our business has seen an increase in customer traffic as a result of these investments, outperforming the broader dine-in casual dining sector.”
The Mirror has reached out to Wagamama for further comments following the disclosure that the company shed over 2,000 jobs in its recent fiscal year, reducing its headcount from 17,542 to 15,468 primarily due to the sale of Frankie & Benny’s in late 2023.
The Restaurant Group reported a pre-tax loss of £32.2 million in 2024, up from the £19.6 million loss in 2023, as per its latest filings with Companies House in October 2025. Despite the loss, revenue surged from £824 million to £868.1 million.
The board’s statement in the accounts noted, “In 2024, we observed a slight easing of food inflation in our primary UK market, although wage costs continued to rise notably with the National Minimum Wage increase. We remain committed to maintaining food quality, excellent customer service, and cost efficiency amid a challenging economic environment.”
The statement continued, “We have proceeded cautiously with new store openings while investing in new technology to support customer initiatives, such as our ‘soul club’ loyalty program at Wagamama.”