Wagamama is contemplating raising prices on its menu in the UK next year. The popular pan-Asian restaurant chain has informed investors about potential “selective price increases” due to expected higher expenses for labor, food and beverages, and rent.
According to a report by The Times, Wagamama foresees a 4% to 5% increase in labor and food costs and a 2% to 3% rise in other costs like rent (excluding energy costs). This decision coincides with the upcoming 4.1% increase in the minimum wage in April 2026, with hourly rates set to reach £12.71 for workers aged 21 and above.
In response to the changing economic landscape, Wagamama aims to save £8 million next year by optimizing its operations. The company spokesperson emphasized a strategic focus on enhancing the customer experience and value proposition, which has resulted in improved performance compared to the broader dine-in casual dining market.
While the increase in National Insurance contributions has added pressure on businesses, Wagamama remains committed to providing customers with competitive pricing and value. The Mirror has reached out to Wagamama for further comments following the company’s recent restructuring efforts, which included a reduction in headcount and operational streamlining.
The Restaurant Group, Wagamama’s parent company, reported a pre-tax loss of £32.2 million for 2024, a significant increase from the previous year’s £19.6 million loss. Despite the financial challenges, revenue saw a positive growth trajectory from £824 million to £868.1 million.
Looking ahead, the company plans to navigate the evolving economic landscape by focusing on food quality, customer service, and operational efficiency while exploring new technologies and initiatives such as the Wagamama loyalty scheme, ‘soul club.’