TL;DR
Guzman y Gomez, an Australian-founded Mexican fast-casual chain, has closed all eight US restaurants after six years in Chicago. The move marks a complete exit from the US market, citing underperformance and high costs. This impacts the competitive landscape and reflects broader industry challenges.
Guzman y Gomez, an Australian-born Mexican fast-casual chain, has closed all of its US restaurants, ending its US operations after six years in Chicago. The company cited business challenges and financial considerations as reasons for the abrupt shutdown, marking a significant retreat from its US expansion ambitions.
The company’s US website confirmed the closure with a message stating, “All GYG USA restaurants permanently closed,” effective from May 22, 2026. The Chicago-area locations, all eight, were shuttered, and the company expressed gratitude to customers and staff in a statement on Instagram, noting the difficulty of the decision.
Founded in Australia by New Yorkers Steven Marks and Robert Hazan, Guzman y Gomez entered the US market in 2020 with plans for rapid growth, including hundreds of locations across the country. However, recent statements from Marks indicated that the US operations were not meeting expectations, citing the need for more time and capital than initially anticipated. The company’s Australian stock surged over $3 AUD following the announcement, reflecting investor optimism about focusing on core markets.
Why It Matters
This closure impacts the competitive landscape of fast-casual Mexican food in the US, leaving Chipotle as the dominant player with roughly 4,000 locations. It also underscores the difficulties faced by smaller chains trying to scale amid rising food costs, cautious consumer spending, and industry-wide traffic declines. The move may influence investor sentiment and strategic decisions among similar brands.
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Background
Guzman y Gomez’s US expansion was part of a broader international growth strategy, with the company positioning itself as a cleaner, more ingredient-focused alternative to competitors. Despite high ambitions, the company faced mounting challenges, including industry headwinds like inflation, higher food prices, and declining restaurant visits. Industry data shows that food-away-from-home prices increased sharply from 2019 to 2026, putting pressure on restaurant margins.
The company’s decision to exit the US market follows recent reports of industry-wide struggles, with some chains filing for bankruptcy or closing locations due to economic pressures. Guzman y Gomez had reaffirmed its growth plans earlier but shifted course after assessing its US prospects.
“Having spent the last three months in the US, I realized this was going to take significantly more time and capital than we had expected.”
— Steven Marks, Guzman y Gomez CEO
“Marks said, ‘We have a long runway ahead of us in Australia as we progress towards our long-term target of 1,000 restaurants and segment underlying EBITDA as a percentage of network sales of 10%.'”
— Business News Australia
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What Remains Unclear
It is not yet clear whether Guzman y Gomez plans to re-enter the US market in the future or focus solely on Australia, Japan, and Singapore. The company’s future expansion strategies remain under consideration, and the precise financial impact of the US exit on overall corporate performance is still emerging.
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What’s Next
Guzman y Gomez will concentrate on its existing markets in Australia, Japan, and Singapore, aiming to expand its footprint there. The company is likely to reassess US market opportunities in the future, but no specific plans have been announced. Industry analysts will monitor whether other chains follow suit amid ongoing economic pressures.
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Key Questions
Why did Guzman y Gomez close its US locations?
The company cited underperformance, high costs, and the realization that US expansion would require more time and capital than initially expected.
Will Guzman y Gomez reopen in the US someday?
There has been no official statement about re-entry plans. The current focus is on consolidating operations in existing markets.
How does this affect the US Mexican fast-casual market?
The closure reduces competition for Chipotle and other chains, potentially consolidating market share among larger players.
What challenges are US restaurants facing right now?
US restaurants are experiencing declining traffic, rising food costs, and cautious consumer spending, which have led to closures and bankruptcies across the industry.
Source: Google Trends
