Full Breakdown
Guzman y Gomez Exits U.S., Shuts All Chicago-area Restaurants
5/24/2026, 11:43:09 AM
Immediate Closure of U.S. Operations
On May 22 2026 the Australian fast-casual chain announced that all U.S. restaurants—nine sites across Naperville, Schaumburg, Des Plaines, Bucktown, Evanston, Crystal Lake, Deerfield, Buffalo Grove and Lake County—would close that day, citing financial performance that “has not been acceptable and is not meeting targeted hurdles.”
Background & Context
GYG entered the U.S. in 2020 with a Naperville flagship and expanded to up to nine Chicago-area locations, including Evanston and a new Des Plaines restaurant, before announcing further sites in early 2025.
Timeline
- 2020: First restaurant opens in Naperville.
- 2020-2025: Nine sites launch, adding Evanston (2024) and Des Plaines (2025).
- Early 2025: Plans for Lincoln Square, Lakeview, second Naperville.
- May 22 2026: All U.S. restaurants close.
Data & Statistics
Sources list eight or nine closed sites. GYG expects a US $30-40 million exit charge, cash costs ?US $15 million, and shares rose ~20 % after the news. FY 26 guidance projects Australian EBITDA of A$85 million, up 29 %.
Why It Matters
The exit shows the difficulty of scaling Mexican-style fast-casual concepts in a market led by giants like Chipotle (?4,000 U.S. outlets). Capital will shift to higher-margin growth in Australia, Singapore and Japan, while staff face job loss.
Official Statements & Responses
The company thanked guests and staff and invited them to visit locations in Australia, Singapore or Japan. Co-CEO Steven Marks said the U.S. effort “did not translate to an improvement in sales momentum” and that the board concluded the business “is unlikely to deliver the performance that would justify continued investment of shareholder capital.”
Criticism & Opposition
RBC analyst Michael Toner called the U.S. unit “very low prospects,” saying its losses weighed on group earnings. The Guardian noted GYG’s large burritos struggled in a crowded Mexican-restaurant market.
Conflicting Reports & Gaps
Sources differ on whether eight or nine locations closed. Construction on a second Naperville restaurant had begun, but its future use is undisclosed. Full details of the US $30-40 million exit charge await the FY 26 audit.
Verbatim Quotes
- “After six years of burritos and big dreams in Chicagoland, we've made the difficult decision to close our US restaurants.” — Guzman y Gomez statement
- “ “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.” — Steven Marks, Founder & Co-CEO
- “Having spent the last 3 months in the US, I realised this was going to take significantly more time and capital than we had expected.” — Steven Marks
- “He said the unit had “very low prospects” and its losses hurt group earnings.” — Michael Toner, RBC Capital Markets analyst
What’s Next
GYG will refocus on expanding in Australia and on growth in Singapore and Japan. The FY 26 report will detail the U.S. exit’s impact, while the disposition of former leases and the unfinished Naperville site remains pending.
