Wagamama is contemplating potential price adjustments to its menu in the UK for the upcoming year. The popular pan-Asian restaurant chain has informed investors about the possibility of implementing targeted price increases due to expected rises in expenses such as labor, food and beverage, and rent.
According to reports from The Times, Wagamama foresees a 4% to 5% increase in labor and food and beverage costs, while other expenses like rent are projected to go up by 2% to 3%, excluding energy costs. This decision aligns with the upcoming 4.1% hike in the minimum wage scheduled for April 2026, with the hourly rate for workers aged 21 and above set to reach £12.71.
Workers aged 18 to 20 will experience an 8.5% raise in their minimum wage to £10.85 per hour, while those aged 16 and 17 will be entitled to a minimum of £8 per hour. Wagamama is also aiming to achieve cost savings of £8 million in the following year through operational streamlining efforts.
A company spokesperson emphasized the focus on enhancing customer experience and value, stating, “We have consciously avoided significant price hikes and have instead invested in improving our offerings. This strategy has resulted in increased business and outperformance compared to the broader dine-in casual dining sector.”
Looking ahead to 2026, Wagamama plans to review its pricing strategy while maintaining its commitment to delivering excellent value for customers. The Mirror has reached out to Wagamama for further comments, particularly following the revelation that the company had reduced its workforce by over 2,000 employees in the previous financial year.
Additionally, the Restaurant Group reported a pre-tax loss of £32.2 million for 2024, up from £19.6 million in 2023, as per the latest filings with Companies House. Despite the loss, revenue saw an increase from £824 million to £868.1 million. The company highlighted the challenges posed by rising wage costs and economic uncertainties but expressed dedication to quality, customer service, and operational efficiency to preserve profit margins.
Moreover, Wagamama continues its strategic approach to new store openings while investing in technology, including the launch of the Wagamama loyalty scheme ‘soul club,’ to enhance customer engagement.