Wagamama is contemplating raising prices on its UK menu next year, citing expected increases in labor, food and drink, and rent costs. The restaurant chain informed investors about potential “selective price increases” to offset the anticipated rise in expenses. According to The Times, Wagamama foresees a 4% to 5% hike in labor and food and drink costs, and a 2% to 3% increase in other expenses like rent.
This decision aligns with the impending 4.1% minimum wage raise in April 2026, which will elevate the hourly rate for workers aged 21 and over to £12.71. Additionally, employees aged 18 to 20 will witness an 8.5% wage boost to £10.85 per hour, while those aged 16 and 17 will receive a minimum of £8 per hour.
Meanwhile, National Insurance contributions for employers surged from 13.8% to 15% in the 2024 Budget, intensifying financial strains on businesses. Wagamama aims to achieve £8 million in savings next year through operational streamlining efforts.
A company spokesperson emphasized a strategic focus on enhancing customer offerings rather than implementing substantial price hikes. Wagamama’s investments in customer experience have yielded increased footfall, outperforming the broader dine-in casual dining market. The company plans to reassess its pricing strategy in 2026 while emphasizing value for customers.
The Mirror reached out to Wagamama for further comments following reports that the company shed over 2,000 jobs in its recent 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 recording a pre-tax loss of £32.2 million in 2024, up from £19.6 million in 2023, The Restaurant Group saw a revenue boost from £824 million to £868.1 million. The company’s accounts highlighted the impact of wage inflation and economic uncertainties, emphasizing a commitment to quality, service, and cost efficiency amidst a challenging economic landscape.
Continuing their measured expansion approach, Wagamama remains dedicated to enhancing customer experience through technological advancements like the new ‘soul club’ loyalty program.
