Wagamama reportedly expects its labour and food and drink costs to rise by 4% to 5%, and other costs such as rent, but not energy costs, to go up by 2% to 3%
Wagamama is reported to be considering price increases to its UK menu next year.
The pan-Asian restaurant restaurant chain is said to have told investors that it could introduce “selective price increases” as it anticipates higher costs for labour, food and drink, and rent.
The Times reports that Wagamama expects its labour and food and drink costs to rise by 4% to 5%, and other costs such as rent, but not energy costs, to go up by 2% to 3%.
It comes as the minimum wage is set to increase by 4.1% in April 2026, taking the hourly rate for workers aged 21 and over to £12.71 an hour.
Workers aged 18 to 20 will see their minimum wage jump by 8.5% to £10.85 an hour, while those aged 16 and 17 must be paid a minimum of £8 an hour.
Meanwhile, employer National Insurance contributions rose from 13.8% to 15% in the 2024 Budget, putting more pressure on businesses.
The Times reports that Wagamama is planning to save £8million next year by streamlining its operations.
A spokesman for the company told the newspaper: “We have deliberately avoided major price increases and invested in our customer proposition.
“We are seeing improved volumes on the back of this investment and our performance is ahead of the broader dine-in casual dining market.
“We will review our pricing during 2026, remaining firmly focused on providing our customers strong value for money.”
The Mirror has contacted Wagamama for additional comment. It comes after the owner of Wagamama revealed it had cut more than 2,000 jobs during its latest financial year.
Wagamama reduced its headcount from 17,542 to 15,468 in the year, which it said was largely down to the sale of Frankie & Benny’s in late 2023.
The Restaurant Group recorded a pre-tax loss of £32.2million for 2024, up from its £19.6million loss in 2023, according to its latest accounts filed with Companies House in October 2025. However, its revenue increased from £824million to £868.1million.
A statement signed off by the board for its accounts reads: “During 2024, we finally started to see food inflation easing in our primary market in the UK, although the upward pressure on wage costs continued with a further significant increase in the National Minimum Wage.
“The positive impact of interest rate reductions on consumer sentiment was also quickly eroded by the Autumn Budget statement with concerns surrounding the impact of employer National Insurance increases on wage growth, employment and broader investment.
“Although the economic backdrop remains challenging, we continue to focus on food quality and great customer service, while managing our cost base efficiently to maintain margins.
“We have continued our measured approach to new store openings while investing in new technology to support customer initiatives, such as our new Wagamama loyalty scheme, ‘soul club’.”
