Wagamama is contemplating raising prices on its menu in the UK next year. The pan-Asian restaurant chain is discussing the possibility of implementing “selective price increases” due to expected higher costs for labor, food and beverages, and rent.
According to reports from The Times, Wagamama foresees a 4% to 5% increase in labor and food costs, while other expenses like rent are projected to rise by 2% to 3%. This decision coincides with the upcoming 4.1% increment in the minimum wage in April 2026, which will set the hourly rate for workers aged 21 and above at £12.71.
Meanwhile, the employer National Insurance contributions rose from 13.8% to 15% in the 2024 Budget, adding more financial strain on businesses. To counterbalance these challenges, Wagamama plans to optimize its operations to save £8 million in the coming year.
A company spokesperson stated, “We have consciously avoided significant price hikes and focused on enhancing our customer experience. Our strategic investments have resulted in increased patronage, outperforming the wider dine-in casual dining sector. We will reassess our pricing strategy in 2026, emphasizing value for our customers.”
The Mirror reached out to Wagamama for further comments following the disclosure that over 2,000 jobs were eliminated 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.
Despite a pre-tax loss of £32.2 million in 2024, up from £19.6 million in 2023, The Restaurant Group witnessed a revenue surge from £824 million to £868.1 million, as per its latest filings with Companies House in October 2025. The board’s statement highlighted efforts to manage costs effectively amidst economic challenges, focusing on food quality, customer service, and technological advancements like the new Wagamama loyalty program, ‘soul club.’