Wagamama is contemplating raising prices on its UK menu in the upcoming year, citing expected increases in labor, food and drink, and rent costs. The pan-Asian restaurant chain is considering implementing targeted price hikes to offset these rising expenses.
According to a report by The Times, Wagamama foresees a 4% to 5% increase in labor and food and drink costs, along with a 2% to 3% rise in other expenses such as rent, excluding energy costs. This adjustment comes as the minimum wage is scheduled to rise by 4.1% in April 2026, with hourly rates reaching £12.71 for workers aged 21 and over. Additionally, employees aged 18 to 20 will experience an 8.5% wage increase to £10.85 per hour, while those aged 16 and 17 will see a minimum wage of £8 per hour.
Meanwhile, National Insurance contributions for employers climbed from 13.8% to 15% in the 2024 Budget, adding further financial strain on businesses. The Times also notes that Wagamama plans to save £8 million in the following year through operational streamlining efforts.
A Wagamama spokesperson mentioned to the newspaper, “We have avoided significant price hikes and instead focused on enhancing our customer experience. Our strategic investments have led to increased customer traffic, outperforming the wider dine-in casual dining sector. We will assess our pricing strategy in 2026, emphasizing our commitment to offering customers excellent value for their money.”
The Mirror has reached out to Wagamama for additional comments following the disclosure that over 2,000 jobs were cut during the previous financial year. The reduction in headcount from 17,542 to 15,468 was primarily attributed to the sale of Frankie & Benny’s in late 2023.
The Restaurant Group reported a pre-tax loss of £32.2 million for 2024, compared to a £19.6 million loss in 2023, as per its latest filings with Companies House in October 2025. Despite this, revenue saw an increase from £824 million to £868.1 million.
In a statement from the board accompanying the accounts, it was mentioned, “In 2024, we observed a gradual decline in food inflation in the UK market, although wage costs continued to rise notably due to the National Minimum Wage hike. The positive impact of interest rate reductions on consumer sentiment was offset by concerns stemming from the Autumn Budget statement regarding the effects of increased employer National Insurance rates on wage growth, employment, and broader investments. Despite the challenging economic environment, we remain focused on quality food, exceptional customer service, and efficient cost management to preserve margins. We have maintained a cautious approach to new store openings while investing in new technology to support customer initiatives, including our new Wagamama loyalty program, ‘soul club’.”