Australian fast-casual chain Guzman y Gomez has closed all of its U.S. restaurants, ending a six-year attempt to break into the American market.
The Mexican food chain, often described as a Chipotle rival, announced that its U.S. locations would permanently cease trading on May 22.
All eight of the company’s American restaurants were located in the Chicago area.
A message on the company’s U.S. website said all GYG USA restaurants were permanently closed and thanked customers for their support.
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The company also confirmed the decision on Instagram, calling it the end of six years of burritos and big dreams in Chicagoland.
The shutdown marks a major reversal for a brand that entered the U.S. in 2020 with ambitions to build a much larger footprint.
Guzman y Gomez was founded in Australia by native New Yorkers Steven Marks and Robert Hazan.
When the chain launched in the U.S., company leaders said they hoped to eventually open hundreds, if not thousands, of restaurants across the country.
Instead, the company is now exiting the U.S. entirely.
Marks said the brand remained confident in its food and customer experience, but the business was not generating enough sales momentum to justify further investment.
After spending several months in the U.S., he concluded that turning the American business around would take more time and capital than expected.
The company said it will now focus its resources on markets where it sees stronger growth potential, including Australia, Singapore and Japan.
Guzman y Gomez still plans to expand aggressively in Australia, where it has set a long-term target of 1,000 restaurants.
The U.S. closure comes during a difficult period for many restaurant chains.
Higher food costs, cautious consumers and weaker restaurant traffic have put pressure on brands, especially those trying to scale in competitive categories like fast-casual Mexican food.
Guzman y Gomez had positioned itself as a cleaner alternative in the segment, promoting food without added preservatives, artificial flavors or certain additives.
But in the U.S., it faced an uphill battle against Chipotle, which has thousands of restaurants and dominates the fast-casual Mexican category.
Analysts said the U.S. exit may ultimately help Guzman y Gomez by ending losses from a business that had limited prospects of near-term success.
For American customers, the closure means another smaller challenger has disappeared from the market.
For Guzman y Gomez, the decision signals a retreat from the U.S. and a renewed focus on markets where the brand already has stronger traction.
Why It Matters
The closure shows how difficult it is for international restaurant brands to scale in the crowded U.S. fast-casual market. Even with big ambitions and a strong brand overseas, Guzman y Gomez struggled to gain enough sales momentum against established competitors like Chipotle.
What Comes Next
Guzman y Gomez will focus on growth in Australia and other international markets while abandoning its U.S. expansion plan. The company’s exit could improve earnings by removing losses from its American operations.
Guzman y Gomez has permanently closed all of its U.S. restaurants after six years in the Chicago market.
Chipotle rival Guzman y Gomez Mexican Kitchen closes all US restaurants https://t.co/hzQhlkDTat pic.twitter.com/mgnsLXmd8y
— New York Post (@nypost) May 25, 2026
