Wagamama is reportedly contemplating raising prices on its UK menu in the upcoming year. The pan-Asian restaurant chain has informed investors about potential “selective price increases” due to expected higher expenses in labor, food and beverages, and rental costs.
According to The Times, Wagamama foresees a 4% to 5% increase in labor and food and beverage costs, along with a 2% to 3% rise in other expenses such as rent, excluding energy costs. This decision coincides with the upcoming 4.1% minimum wage hike in April 2026, which will set the hourly rate for workers aged 21 and above at £12.71.
In addition, employees aged 18 to 20 will experience an 8.5% pay increase to £10.85 per hour, while those aged 16 and 17 will see a minimum wage of £8 per hour. The rise in employer National Insurance contributions from 13.8% to 15% in the 2024 Budget has further added pressure on businesses.
The Times also mentions Wagamama’s plans to achieve £8 million in savings next year through operational streamlining. A company spokesperson stated, “We have consciously avoided significant price hikes and instead focused on enhancing our customer experience. Our strategic investments have led to increased customer traffic, surpassing performance in the broader dine-in casual dining sector.”
The company intends to reassess its pricing strategy in 2026 while maintaining a strong emphasis on delivering value for money to its customers. The Mirror has reached out to Wagamama for additional comments following the recent revelation that over 2,000 jobs were cut during the last financial year.
