Wagamama owners warn of 10% food and drink inflation

The owner of Wagamama have warned food and drink inflation could reach 10% this year as the war in Ukraine  hits supply chains.

The Restaurant Group, which operates about 400 restaurants including branches of Frankie & Benny’s and Chiquito, said it was trying to offset rising costs but warned “this remains a volatile inflationary market”.

In March the group said the soaring cost of gas and electricity would add £6m-£7m to its expenses this year, as well as flagging rising wage costs.

SSP Group, which runs the Upper Crust sandwich shops  also warned it expects inflation to “step up” through the second half and into next year.

“Where there is low labour availability, this is also resulting in higher labour costs,” SSP said in a statement.

The Ukraine crisis and global supply chain disruptions that began during the pandemic have seen prices spiral around the world, making everything from fuel to food more expensive.

The price warnings come just a week after Roger Whiteside, who is stepping down as the boss of Greggs, warned further price rises were likely across its stores.