Guzman y Gomez, the Australian-based Mexican restaurant chain, has abruptly closed all of its United States locations, effectively ending its American expansion ambitions. The decision, announced by founder and CEO Steven Marks, affects eight restaurants in the Chicago area, which represented the entirety of the chain's US footprint.
Reasons for the Closure
Steven Marks explained that the US business was not generating sufficient returns to justify continued investment. He noted that achieving success in the American market would require significantly more time and capital than initially anticipated. The closure was effective May 22, with the company inviting US customers to visit its international locations in Australia, Singapore, or Japan.
Background on Guzman y Gomez
Guzman y Gomez operates over 260 restaurants across Australia, Singapore, and Japan. The chain, known for its Mexican cuisine, had been testing the US market with its Chicago locations before deciding to withdraw completely. The abrupt exit marks a strategic pivot back to its core markets in Asia-Pacific.
- Eight US locations closed, all in Chicago.
- CEO cites insufficient returns and high capital requirements.
- Company focuses on existing international markets.
This move underscores the challenges foreign restaurant chains face in the competitive US dining landscape. Guzman y Gomez had opened its first US location in 2022 but struggled to gain traction against established rivals like Chipotle. The closure leaves US customers without access to the chain's offerings unless they travel abroad.
