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Guzman y Gomez, a Mexican fast-casual chain from Australia, has closed all its US restaurants after six years in Chicago. The move marks a retreat from its US expansion amid industry challenges. The closure impacts the competitive landscape and raises questions about future strategies.
Guzman y Gomez, an Australian-founded Mexican fast-casual chain, has closed all of its US restaurants, ending its six-year presence in the Chicago area. The company’s US website confirmed the permanent shutdown, citing the decision was made effective May 22, 2026. This marks a significant reversal for the company, which had planned to expand aggressively across the US.
The closure affects all eight Guzman y Gomez locations in the Chicago region. The company announced the shutdown via a message on its US website and an Instagram post, thanking customers and employees for their support. The move follows recent statements from company leadership indicating that US growth was no longer feasible due to sales challenges and high investment costs.
Founded in Australia by New Yorkers Steven Marks and Robert Hazan, Guzman y Gomez entered the US market in 2020 with ambitions to establish hundreds of locations. However, CEO Marks explained that despite confidence in their food and customer experience, sales momentum did not improve as expected, and the business required more time and capital than the company could sustain. The company’s decision to withdraw from the US was announced after assessing its current network and future prospects.
Why It Matters
This closure reduces the competitive pressure on Chipotle, which remains the dominant player in the US Mexican fast-casual market with approximately 4,000 restaurants. It also signals broader industry challenges, including declining foot traffic, rising food costs, and cautious consumer spending, which have affected many restaurant chains. The move may influence investor sentiment, as Guzman y Gomez’s Australian stock surged following the announcement, reflecting optimism about focusing on core markets.
For consumers, the exit limits options for Mexican fast-casual dining in Chicago. For the industry, it underscores the difficulty of scaling in a crowded and cost-sensitive environment, especially for international brands attempting to enter the US market without established local infrastructure.
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Background
Guzman y Gomez, founded in Australia in 2006, expanded into the US in 2020 amid ambitions to build a major American footprint. The company positioned itself as a healthier alternative to traditional fast food, emphasizing no artificial ingredients. Despite initial optimism, its US operations struggled with sales and high operational costs, prompting leadership to reconsider its strategy.
Industry-wide, restaurant chains face increased pressures from inflation, higher food prices—up 39.3% from January 2019 to January 2026—and declining consumer traffic. Many brands have scaled back or closed locations due to these headwinds, with Guzman y Gomez’s exit being one of the most prominent recent examples.
“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, CEO of Guzman y Gomez
“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%.”
— Australian Securities Exchange announcement
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What Remains Unclear
It is not yet clear whether Guzman y Gomez plans to re-enter the US in the future or if this closure is permanent. The company’s future expansion plans remain uncertain, and the impact on its global strategy is still developing.
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What’s Next
Guzman y Gomez will focus on strengthening its operations in Australia, Japan, and Singapore. Investors will watch for any future statements regarding US market re-entry or new growth initiatives. Industry analysts will monitor whether other brands follow similar retreat patterns amid ongoing economic pressures.
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Key Questions
Why did Guzman y Gomez close its US locations?
The company cited sales challenges, high investment costs, and a reassessment of its US growth prospects as reasons for the closures.
Will Guzman y Gomez return to the US market?
It is currently unclear. The company has not announced plans to re-enter the US, focusing instead on its core markets in Australia, Japan, and Singapore.
How does this affect the US Mexican fast-casual industry?
The closure reduces competition for Chipotle but highlights broader industry pressures that have led other chains to cut back or close locations.
What will happen to the Chicago locations now?
The eight locations are permanently closed, with no current plans for reopening or sale announced.
Source: Google Trends
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