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Guzman y Gomez Exits U.S., Closes All Chicago-Area Restaurants

Weak U.S. sales that would have required more time and capital prompted the Australian chain to withdraw and refocus resources on Australia, Japan and Singapore.

Overview

  • The chain permanently closed all eight of its U.S. restaurants, all in the Chicago area, with closures effective May 22 and planned 2026 openings abandoned.
  • Founder and co-CEO Steven Marks said the U.S. operations were not generating sufficient sales momentum and would need significantly more time and capital to scale.
  • Former U.S. employees filed a class-action lawsuit alleging the company failed to provide the 60 days' advance notice required by federal and Illinois law, with a law firm estimating more than 500 workers could be affected.
  • Guzman y Gomez has told investors the exit will trigger one-off accounting charges and cash exit costs, and the company says it is confident it met its legal obligations to U.S. staff.
  • Industry observers say the move underscores broader challenges for overseas fast-casual chains in the U.S., including stiff domestic competition, rising costs and softer consumer traffic.