Wagamama set to hike meal costs because it passes on rising prices to diners

Wagamama is the latest hospitality firm reportedly eyeing price hikes in the new year as it passes rising overheads onto customers.

The restaurant chain told investors it was considering ‘selective price increases’, according to the Sunday Times.

Wagamama said it expected staff and food and drink costs to rise by between 4 and 5 per cent in 2026, while other costs, like rent – but excluding energy bills – would increase by 2 to 3 per cent.

It joins other hospitality and leisure companies that have been forced to push up prices after a series of tax raids.

Chief among concerns is the cost of changes to employer National Insurance contributions, which increased from 13.8 per cent to 15 per cent in the 2024 Budget. 

The national minimum wage for 18-20 year olds will also rise by 8.5 per cent to £10.85 per hour from next April. For 16-17 year olds it will go up by 6 per cent to £8. 

There are also concerns about business rates valuations that will mean smaller operators face extortionate bills from April.

Pub chains have already warned of higher prices in the new year.

A Wagamama spokesman told the Sunday Times: ‘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.’

There have been a series of high-profile casualties of once well-loved chains that have folded into administration or had to scale back their presence on the high street in recent months.

In October, Pizza Hut appointed administrators as it announced the closure of 68 restaurants and 11 delivery sites. 

US firm Yum! Brands, which owns Pizza Hut’s global business, said it had bought the UK restaurant operation in a pre-pack administration deal.

TGI Fridays was also saved from administration by its former chief executive Ray Blanchette, but will still close 35 of its restaurants.

Even celebrity chef Gordon Ramsay could not stave off the doom and gloom, announcing nearly 200 job losses after recording a £13.2million deficit over the past year.

While higher costs have been the primary reason for closures and price hikes, the rising cost of living has again hit consumer spending power this year.

While Wagamama has launched new ‘value’ deals and a reward scheme, customer numbers were reportedly down in the first half of the year, before rising by 2 per cent in the 11 weeks to 14 December.