Guzman y Gomez Mexican Kitchen, a Chipotle rival that opened in the Chicago area in 2020, has permanently closed all eight of its U.S. restaurants. The company said the shutdown becomes effective May 22 and cited a sales slowdown that required more time and ca
The notice appeared plainly on the company’s U.S. website: “All GYG USA restaurants permanently closed.” The message goes further. spelling out the date—“Effective from May 22nd. GYG USA restaurants will cease trading”—and that small line of text carries a blunt consequence for the Chicago area diners who had built their routines around eight Guzman y Gomez locations.
On Instagram, the chain also confirmed the closure in a post thanking customers and employees across Chicagoland. “After six years of burritos and big dreams in Chicagoland. we’ve made the difficult decision to close our US restaurants. ” the post read. “To every guest who came through our doors – you chose us, and we never took that for granted.”.
For a company that once spoke of turning its U.S. entry into something far bigger, the retreat lands like a reversal. Guzman y Gomez’s U.S. debut came in 2020, and its founders had aimed to open “hundreds, if not thousands” of locations across the country. Instead, the company is exiting the U.S. entirely after six years in the Chicago area.
The company had already been sending signals that the American rollout wasn’t unfolding as planned. In an Australian Securities Exchange announcement. Steven Marks—who. along with Robert Hazan. founded Guzman y Gomez in Australia after being native New Yorkers—said the differentiation of its food and guest experience was not translating into improved sales momentum. “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. ” Marks said.
Marks framed the decision as a board-level conclusion tied directly to investment and performance. “In assessing the trajectory of the current network. the board and I have concluded that the business is unlikely to deliver the performance that would justify continued investment of shareholder capital.”.
That’s the contradiction readers will feel most acutely: a business built around the promise of a cleaner take on fast-casual Mexican food—no added preservatives. no artificial flavors. no added colors. and no “unacceptable additives. ” as described on its Australian website—ended its U.S. run despite the pitch.
The timing also matters. The company’s U.S. closure was posted and announced abruptly on Friday morning, and the company’s U.S. website indicates the shutdown will take effect May 22. For customers, that means a hard stop rather than a drawn-out wind-down.
Even the stock reaction in Australia underscored that the company’s exit is being read as a strategic reset. Guzman y Gomez’s stock price surged more than $3 Australian from $18.05 to $21.10 when the news dropped Friday morning. Marks pointed to the future in other markets. saying the company has “a long runway ahead of us in Australia” as it progresses toward a long-term target of 1. 000 restaurants. He also cited a goal of segment underlying EBITDA as a percentage of network sales of 10%. “Concentrating our capital. focus and infrastructure behind this opportunity is the most effective way to compound shareholder value over the long term. ” Marks said.
The broader food industry picture provides the pressure behind the scenes. U.S. restaurants have been dealing with cautious consumers, higher food costs, and declining traffic. One report cited data showing three in 10 Americans have cut back on retail spending and restaurant visits compared with a year earlier. and food-away-from-home prices rose 39.3% from January 2019 to January 2026—far faster than in the previous seven-year period.
In an industry already crowded and expensive to scale, Guzman y Gomez’s exit leaves another gap. Its U.S. closure means Chipotle—roughly 4,000 restaurants—now faces fewer smaller fast-casual Mexican challengers in the American market.
Still, some analysts suggested the exit could benefit the parent company’s performance. Michael Toner. an RBC Capital Markets analyst. said the closure could be positive for Guzman y Gomez’s broader business because the U.S. operations had “very low prospects of being successful,” and the losses were weighing on group earnings. Toner said, “The U.S. business had very low prospects of being successful. and the losses of the business were weighing down the earnings of the group so the sooner exit than anticipated is positive.”.
For employees and diners in Chicagoland, the reality is simpler and harder: between now and May 22, the last meal at a Guzman y Gomez location won’t just mark the end of a brand in the neighborhood—it will close a chapter the company once described as the start of something much larger.
Guzman y Gomez Chipotle rival Chicago restaurants fast casual Mexican restaurant closures May 22 ASX GYG Chicagoland