Wagamama is contemplating raising prices on its UK menu in the upcoming year, citing expectations of increased costs for labor, food and beverages, and rent. The pan-Asian restaurant chain has reportedly informed investors about potential “selective price increases” to offset rising expenses. According to The Times, Wagamama foresees a 4% to 5% surge in labor and food costs, while other expenses like rent are expected to climb by 2% to 3%.

This move coincides with a scheduled 4.1% hike in the minimum wage in April 2026, which will elevate the hourly rate for workers aged 21 and above to £12.71. Workers aged 18 to 20 will witness an 8.5% increase to £10.85 per hour, and those aged 16 and 17 will be entitled to a minimum wage of £8 hourly.

Meanwhile, National Insurance contributions for employers have escalated from 13.8% to 15% under the 2024 Budget, adding more financial strain on businesses. Wagamama is reportedly aiming to achieve £8 million in savings next year by optimizing its operational processes.

A Wagamama spokesperson highlighted that the company has refrained from significant price hikes, focusing instead on enhancing the customer experience. They emphasized that the ongoing investments have yielded improved business performance, outpacing the broader dine-in casual dining market. Wagamama intends to reassess its pricing strategy in 2026 while remaining committed to delivering excellent value for customers.

In a related development, the owner of Wagamama disclosed a reduction of over 2,000 jobs during the previous financial year, which saw the company’s headcount decrease from 17,542 to 15,468 primarily due to the sale of Frankie & Benny’s in late 2023. Despite facing a pre-tax loss of £32.2 million in 2024, up from £19.6 million in 2023, The Restaurant Group reported a rise in revenue from £824 million to £868.1 million, as per the latest accounts filed with Companies House in October 2025.

The company’s board underscored its focus on quality food and customer service amidst challenging economic conditions, mentioning efforts to manage costs efficiently and maintain margins. Wagamama continues its measured expansion strategy for new store openings while investing in technology, including the introduction of the new Wagamama loyalty scheme, ‘soul club’.