Wagamama is contemplating raising prices on its UK menu in the upcoming year. The pan-Asian restaurant chain informed investors about potential “selective price increases” due to expected higher costs for labor, food and beverages, and rent.
According to The Times, Wagamama foresees a 4% to 5% increase in labor and food and drink expenses, while other costs like rent are projected to rise by 2% to 3%, excluding energy costs. This decision coincides with an upcoming 4.1% increase in the minimum wage in April 2026, with hourly rates reaching £12.71 for workers aged 21 and above.
The restaurant chain aims to save £8 million next year by optimizing its operations, as reported by The Times. A Wagamama spokesperson stated, “We have consciously avoided significant price hikes and have instead invested in enhancing our customer experience. This strategy has resulted in improved patronage and outperformance within the broader dine-in casual dining sector.”
Wagamama plans to review its pricing strategy during 2026 while maintaining a strong focus on delivering value for its customers. In related news, the company had to cut over 2,000 jobs in its latest financial year, reducing its workforce from 17,542 to 15,468 primarily due 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 increase from £824 million to £868.1 million. The board’s statement in the company’s latest accounts filed with Companies House highlights the challenges faced due to wage cost pressures and economic uncertainties, emphasizing a continued focus on quality, service, and cost management.
Wagamama has also been investing in new technologies and customer initiatives such as the ‘soul club’ loyalty scheme. The company remains committed to strategic store openings and operational efficiency amidst the evolving economic landscape.
