Guzman y Gomez has exited the U.S. market

Guzman y Gomez, an Australian-based Mexican concept founded in 2006, is exiting the U.S. market after nearly six years.

GYG debuted in the U.S. in Naperville, Ill., in January 2020 and since expanded throughout the Chicago market, including in the Bucktown neighborhood, Schaumburg, Evanston, Crystal Lake, Deerfield, Buffalo Grove and Des Plaines.

In an Australian Securities Exchange announcement, founder and CEO Steven Marks said, "I have always been confident in the differentiation of our food and guest experience, however this was not translating to an improvement in sales momentum.

"Having spent the last three months in the U.S., I realized this was going to take significantly more time and capital than we had expected. In assessing the trajectory of the current network, the board and I have concluded that the business is unlikely to deliver the performance that would justify continued investment of shareholder capital."

On a message posted to its website, the company simply said, “All GYG USA restaurants permanently closed. Effective from May 22nd, GYG USA restaurants will cease trading. Thank you for your support.”

On its Instagram page, the company added, “After six years of burritos and big dreams in Chicagoland, we’ve made the difficult decision to close our U.S. restaurants. To every guest who came through our doors — you chose us, and we never took that for granted. To our team — thank you. Your passion and your purpose built something special. If you’re ever in Australia, Singapore or Japan, come find us — we’ll have your favs waiting for you.”

The company had been active on its U.S. social media channels through May 22, including hosting a “Brekkie Burrito Challenge.”

The decision to exit the U.S. market seems a bit abrupt given the concept’s ambitious plans to expand in recent years. In 2023, Marks said, “Guzman y Gomez has the ambitious goal of becoming the number one fast-food company in the world, and as such, knows that to compete with the most established brands we must succeed in the U.S.”

Last year, Marks told Nation’s Restaurant News that GYG has been working to make its food free of artificial colors and additives to better position it for U.S. growth.

The company continues to operate about 240 locations in Australia and about 30 locations in Singapore and Japan.