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 drink expenses, and a 2% to 3% rise in other costs like rent, excluding energy costs. This decision comes as the minimum wage is scheduled to climb by 4.1% in April 2026, reaching £12.71 per hour for workers aged 21 and over.

Employees aged 18 to 20 will witness an 8.5% hike 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.

Meanwhile, National Insurance contributions for employers climbed from 13.8% to 15% in the 2024 Budget, adding more strain on businesses. Wagamama is reportedly planning to cut costs by £8 million next year by optimizing its operations.

A company spokesperson stated, “We have consciously avoided significant price hikes and focused on enhancing our customer offerings. Our strategic investments have led to increased customer traffic, outperforming the broader casual dining market.”

The company intends to reassess its pricing strategy in 2026 while prioritizing delivering value for its customers. The Mirror has reached out to Wagamama for further comments following the revelation that over 2,000 jobs were eliminated during the previous financial year.

Wagamama reduced its workforce from 17,542 to 15,468, mainly due to the sale of Frankie & Benny’s in late 2023. The Restaurant Group reported a pre-tax loss of £32.2 million for 2024, up from £19.6 million in 2023, with revenue climbing from £824 million to £868.1 million.

In a statement accompanying its accounts, the board noted, “Although economic conditions remain challenging, we remain committed to maintaining quality food, excellent service, and efficient cost management to preserve margins.”

The company continues to adopt a cautious approach to new store openings while investing in technology to support customer initiatives such as the new Wagamama loyalty program, ‘soul club’.