Guzman y Gomez Permanently Closes All 8 Chicago-Area U.S. Restaurants

Guzman y Gomez Mexican Kitchen, the Australian fast-casual chain once seen as a potential Chipotle challenger in the U.S., has shut down all eight of its American restaurants after six years in the Chicago area. The company said on its U.S. website that “all GYG USA restaurants permanently closed,” effective May 22, and confirmed the decision on Instagram with messages thanking customers and staff in Chicagoland. The closure ends the brand’s U.S. experiment, which began in 2020 with an ambitious plan to expand far beyond its Chicago-area foothold.

Founded in Australia by native New Yorkers Steven Marks and Robert Hazan, Guzman y Gomez entered the U.S. market with big expectations, including plans to open hundreds, and eventually thousands, of locations nationwide. Instead, the chain struggled to build momentum. Marks said in an Australian Securities Exchange announcement that while he remained confident in the company’s food and guest experience, the results were not translating into stronger sales. After spending three months in the U.S., he concluded the turnaround would require significantly more time and capital than initially expected.

The board ultimately determined that the American business was unlikely to deliver returns that justified continued investment of shareholder capital. Guzman y Gomez said it will now focus resources on markets where it remains active, including Australia, Japan and Singapore. Marks said the company has a long runway in Australia, where it is targeting 1,000 restaurants and aims for segment underlying EBITDA equal to 10% of network sales. He argued that concentrating capital, focus and infrastructure on that opportunity would be the best way to create long-term shareholder value.

The exit comes at a difficult time for the U.S. restaurant industry. Chains are facing cautious consumers, weaker traffic, and higher food and labor costs. Recent industry data cited in the report showed many Americans have been cutting back on restaurant visits, while food-away-from-home prices have risen sharply since 2019. Those pressures have made it harder for smaller or newer brands to scale in a crowded fast-casual market.

Guzman y Gomez had marketed itself as a cleaner alternative in Mexican fast casual, emphasizing no added preservatives, no artificial flavors, no added colors, and no “unacceptable additives” on its Australian website. Despite that positioning, the concept failed to gain enough traction in the United States. The company’s withdrawal leaves Chipotle without one of its smaller international challengers in the American market, while broader competitors such as Cava continue to push growth.

The sudden shutdown was reflected in the company’s stock movement in Australia, where shares jumped after the news as investors appeared to welcome the decision to exit an underperforming U.S. business. Analysts noted that the closure may improve group earnings by removing a market with limited prospects. For now, Guzman y Gomez is ending its American chapter and redirecting its ambitions to regions where it believes the brand has a clearer path to growth.