Guzman y Gomez (GyG) is closing its US operations after failing to gain traction in a crowded Mexican food market, reinforcing the US's reputation as a 'graveyard' for Australian fast food chains. The company announced on Friday that its eight Chicago-area stores will shut, incurring up to US$40m (A$56m) in one-off costs.
Founder and co-CEO Steven Marks said the US business could no longer justify the required investment. 'Having spent the last three months in the US, I realised this was going to take significantly more time and capital than we had expected,' he noted. Analysts had predicted the US arm would not break even for at least another decade.
GyG struggled to compete with established rivals like Chipotle and numerous Latin American restaurants, despite offering larger burritos in the US. RBC Capital Markets analyst Michael Toner called the exit 'positive', stating the US business had 'very low prospects of being successful' and was weighing on group earnings.
Australia remains GyG's core focus, with 237 stores as of end-2025, making it the ninth-largest chain. The company is also expanding in Singapore and Japan. GyG's ASX-listed shares surged over 15% on Friday following the announcement, though they remain below the IPO price of $22.
