Wagamama owner sheds 2,000 jobs as losses widen
The owner of Wagamama shed more than 2,000 jobs as its losses widened during its latest financial year, it has been revealed.
The Restaurant Group, whose other major brand is Brunning & Price, has posted a pre-tax loss of £32.2m for 2024, new accounts filed with Companies House show.
The total comes after the business made a £19.6m loss in 2023.
The accounts also show that the owner of Wagamama also reduced its headcount from 17,542 to 15,468 in the year.
However, its revenue increased over the same period from £824m to £868.1m.
The group said the change in its headcount was mainly as a result of the sale of Frankie & Benny’s in late 2023.
It added that the number of people employed by Wagamama itself grew.
Wagamama owner laments Autumn Budget
A statement signed off by the board said: “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’.”
On Wagamama, The Restaurant Group said the brand opened ten new locations in 2024 and is expected to open six in total this year.
Wagamama was founded in 1991 and acquired by The Restaurant Group for £559m in October 2018.
The Restaurant Group’s portfolio of brands used to include Chiquito and Frankie & Benny’s.
In May, it was reported that the group was in talks to buy a significant number of sites from pub and restaurant chain Oakman Group.