Guzman y Gomez Exits US Market, Closes All Chicago Restaurants
Australian fast-casual chain Guzman y Gomez permanently closed all eight of its U.S. locations in Chicago on May 22, 2026, ending a six-year attempt to compete with Chipotle. Founder Steven Marks cited insufficient sales momentum and the need for excessive capital to turn around the business. The exit, driven by broader U.S. economic pressures and rising food prices, caused the company’s Australian shares to surge up to 21% as investors welcomed the end of losses. The chain will continue operations in Australia, Singapore, and Japan.
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Mexican restaurant chain Guzman y Gomez shuts all 8 Chicago locations, faces class action lawsuit
Guzman y Gomez, a Mexican restaurant chain, has closed all eight of its U.S. locations in the Chicago metro area, effective May 22, 2026. Former employees have filed a class action lawsuit through Chicago firm Haseeb Legal, alleging the chain violated federal and Illinois law by failing to provide the required 60-day notice before the closures. The chain announced the decision publicly on its website and social media, stating it was exiting the U.S. market after six years of operation in Chicagoland. The company continues to operate in Australia, Singapore, and Japan. The lawsuit seeks remedies for the affected workers, who were laid off without the mandated advance warning.
Yahoo FinanceGuzman Y Gomez shuts all 8 US locations in Chicago; former employees file class action lawsuit
Guzman Y Gomez, an Australian-based Mexican restaurant chain, has closed all eight of its U.S. locations, all situated in the Chicago metro area. The closures were announced on May 22, 2026, via the company's website and social media, citing a difficult decision to exit the U.S. market. Former employees have filed a class action lawsuit through Chicago firm Haseeb Legal, alleging the chain violated federal and Illinois law by failing to provide the required 60-day notice before the mass layoffs. The chain, which continues operations in Australia, Singapore, and Japan, expressed gratitude to its Chicago customers. The article also references a related story about Spirit Airlines' shutdown affecting O'Hare workers.
Yahoo FinanceGuzman y Gomez closes all U.S. restaurants, exits Chicago
Australian fast-casual chain Guzman y Gomez has closed all eight of its Chicago-area restaurants, ending its six-year push into the U.S. market. The exit will generate a charge of US$30-40 million in its 2026 full-year results, with cash exit costs not exceeding US$15 million. Founder Steven Marks stated that despite confidence in the brand's differentiation, sales momentum was not improving and would require significantly more time and capital than expected. The company's shares rose 9.57% on the Australian Securities Exchange following the announcement. Guzman y Gomez will now focus on its Australian operations, where it operates 237 restaurants with a long-term target of 1,000 locations, projecting segment underlying EBITDA of roughly A$85 million for the current financial year. The company also plans to continue expanding in Singapore and Japan, where sales growth and unit economics remain strong.
Yahoo FinanceGuzman y Gomez closes all U.S. restaurants, exits Chicago
Australian fast-casual chain Guzman y Gomez has permanently closed all eight of its Chicago-area restaurants, ending its six-year push into the U.S. market. The exit will generate a charge of US$30-40 million in its 2026 full-year results, with cash exit costs not expected to exceed US$15 million. Founder and co-CEO Steven Marks stated that despite confidence in the brand's differentiation, sales momentum was not improving and would require significantly more time and capital than anticipated. The company had reaffirmed its U.S. commitment as recently as February. On the Australian Securities Exchange, shares rose 9.57% to A$19.81 on the news. Guzman y Gomez will now focus on its Australian operations, where it runs 237 restaurants with a target of 1,000, and projects segment underlying EBITDA of roughly A$85 million. The company also plans continued expansion in Singapore and Japan, where sales growth and unit economics remain strong.
Yahoo FinanceGuzman y Gomez closes all US stores, faces lawsuit from former employees
Australian fast-casual Mexican chain Guzman y Gomez abruptly closed all eight of its US locations in Illinois on May 22, 2026, surprising customers and employees. The company, which entered the US market in 2020 with a Naperville location, had planned three additional Illinois openings in 2026 but abandoned those plans. Former employees have filed a lawsuit over the unexpected closures. The chain, founded in Sydney in 2006, operates over 260 restaurants globally in Australia, Singapore, and Japan. The closures reflect challenges international food chains face in the crowded US market, including competition from rivals like Chipotle, declining foot traffic, and inflationary pressures. The company's US website states it has ceased trading, thanking guests and staff.
Yahoo FinanceGuzman y Gomez Mexican Kitchen closes all US restaurants
Guzman y Gomez Mexican Kitchen, an Australian-born Chipotle rival, has abruptly closed all eight of its US restaurants in the Chicago area after six years of operation. The company, founded by native New Yorkers Steven Marks and Robert Hazan, had previously planned to open hundreds of locations across the United States. CEO Steven Marks cited insufficient sales momentum and the need for significantly more time and capital than expected as reasons for the closure. The decision led to a surge in the company's Australian stock price from $18.05 to $21.10. Guzman y Gomez will continue operations in Australia, Singapore, and Japan, with a long-term target of 1,000 restaurants in Australia.
Yahoo FinanceGuzman y Gomez Mexican Kitchen closes all US restaurants
Guzman y Gomez Mexican Kitchen, an Australian-born fast-casual chain and Chipotle rival, has abruptly closed all eight of its US restaurants in the Chicago area after six years of operation. The company announced the permanent closure on its US website and Instagram, thanking customers and employees. Founder Steven Marks stated that despite confidence in the product, sales momentum was insufficient and that turning around the US business would require significantly more time and capital than expected, leading the board to conclude continued investment was not justified. The chain had previously aimed to open hundreds of US locations. Following the closure announcement, the company's stock on the Australian Securities Exchange rose from $18.05 to $21.10. Guzman y Gomez will continue operations in Australia, Singapore, and Japan, with a long-term target of 1,000 restaurants in Australia.
Yahoo FinanceChipotle rival Guzman y Gomez Mexican Kitchen closes all U.S. restaurants
Guzman y Gomez Mexican Kitchen, an Australian-founded fast-casual chain that positioned itself as a 'clean' Mexican food alternative to Chipotle, permanently closed all its U.S. locations on May 22, 2026. The company, founded by New York natives Steven Marks and Robert Hazan, had opened its first U.S. restaurant in 2020. The closure reflects broader challenges in the U.S. restaurant industry, where consumer spending has been squeezed by high prices and economic uncertainty. According to S&P Global data, food-away-from-home prices rose 39.3% from January 2019 to January 2026, far outpacing the previous seven-year increase of 19.2%. Nearly half of U.S. restaurant operators reported lower traffic in March 2026, and customer traffic has declined for two consecutive years. The chain's website now displays a message thanking customers for their support.
Yahoo FinanceChipotle Rival Guzman y Gomez Closes All U.S. Restaurants Amid Economic Pressures
Guzman y Gomez Mexican Kitchen, an Australian-founded fast-casual chain and Chipotle rival, permanently closed all its U.S. locations on May 22, 2026, citing challenging economic conditions. The article highlights that rising menu prices (up 39.3% since 2019) and a tough economy have driven many Americans to reduce dining out. Nearly half of U.S. restaurant operators reported lower traffic in March 2026. The chain, which offered 'clean' Mexican food with no artificial additives, had opened its first U.S. location in 2020 as a return home for its New York-native founders. The closure reflects broader industry struggles with inflation and shifting consumer behavior.
Yahoo FinanceGuzman y Gomez Exits US Market, Shares Surge as Investors Welcome End of Losses
Australian burrito chain Guzman y Gomez Ltd. announced it is immediately closing its Chicago restaurants and exiting the US market, ending a failed attempt to break into the world's largest fast-food market. Founder and Co-CEO Steven Marks admitted the US business was unlikely to justify continued investment of shareholder capital. The company's shares soared as much as 21% in early Sydney trading as investors welcomed the end of the capital drain. Marks had spent the past three months in the US in a final hands-on attempt to turn the business around, but the board ultimately decided to quit. Analysts praised the decision, noting that markets do not forgive open-ended losses. Guzman y Gomez is the most shorted stock on Australia's S&P/ASX 200 Index, with one quarter of investors betting against it. Despite the rally, shares remain below the 2024 IPO price of A$22.
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