Guzman y Gomez (GyG) is closing its US operations, acknowledging the American market as a 'graveyard' for Australian fast-food chains. The Mexican-themed chain informed shareholders on Friday that its eight stores in the Chicago area will shut, with one-off costs of up to US$40 million (A$56 million).
Founder and co-chief executive 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 other Latin American restaurants. In an attempt to attract American customers, it offered larger burritos than in Australia, but sales momentum failed to improve. The US has previously proven too tough for other Australian chains such as Crust Pizza and Oporto.
RBC Capital Markets analyst Michael Toner described the exit as positive, stating that the US business had low prospects of success and was weighing down group earnings. GyG will now focus on its core Australian market, while also expanding in Singapore and Japan.
As of late 2025, GyG had 237 stores in Australia, making it the ninth-largest chain. Its shares surged over 15% on Friday following the announcement, though they remain below the initial public offer price of $22.
