Guzman y Gomez, an Australia-based Mexican restaurant chain, has abruptly closed all of its United States locations, abandoning plans for a major expansion across the country. The chain, which operates over 260 restaurants in Australia, Singapore, and Japan, shuttered its eight Chicago-area restaurants after determining the U.S. business was not generating strong enough returns to justify continued investment.
CEO Cites Insufficient Sales Momentum
Founder and CEO Steven Marks told Business News Australia on Friday that the company decided to exit the U.S. market immediately. “I have always been confident in the differentiation of our food and guest experience, this was not translating to an improvement in sales momentum,” Marks said. He added, “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.”
Expansion Plans Fall Apart
The chain launched its U.S. operations in 2020 with ambitions to build a nationwide presence of hundreds of restaurants. However, it only opened eight locations, all in the Chicago area, including Bucktown, Schaumburg, Evanston, Crystal Lake, Deerfield, Buffalo Grove, and Des Plaines. The menu featured burritos, tacos, nachos, quesadillas, enchiladas, and breakfast burritos.
“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,” Marks stated.
Shutdown Effective May 22
The Guzman y Gomez website confirmed the U.S. shutdown was effective May 22. “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,” the website reads.
It also invited customers to visit the chain’s international locations: “If you're ever in Australia, Singapore or Japan, come find us - we'll have your favs waiting for you.”
