Fast-Growing Mexican Restaurant Chain Gives Up on America After Years of Expansion in Chicago

Fast-Growing Mexican Restaurant Chain Gives Up on America After Years of Expansion in Chicago

Chicago, Illinois — Popular fast-casual restaurant chain Guzman y Gomez Mexican Kitchen has officially announced it is shutting down all of its Chicago-area restaurants and exiting the U.S. market entirely after years of struggling to grow its American business.

The Australia-based company confirmed the closure Friday, marking the end of its six-year attempt to establish itself in the competitive U.S. restaurant industry.

All Chicago-Area Locations Permanently Closed

Guzman y Gomez, commonly known as GYG, operated exclusively in the Chicago region during its time in the United States.

Its locations included restaurants in Chicago’s Bucktown neighborhood, along with suburban spots in Naperville, Schaumburg, Evanston and Crystal Lake.

Customers visiting the Evanston restaurant on Friday were greeted with a closure notice posted on the door.

“PERMANENTLY CLOSED,” the sign read.

The company’s website also displayed a message confirming that operations had officially ended.

“All GYG USA restaurants permanently closed. Effective from May 22nd, GYG USA restaurants will cease trading.”

The sudden shutdown surprised many loyal customers, especially after the company had recently opened a new location in Chicago.

Company Announces Exit on Social Media

GYG shared the announcement publicly through social media, thanking customers and employees while acknowledging the difficult decision to leave the American market.

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“After six years of burritos and big dreams in Chicagoland, we’ve made the difficult decision to close our US restaurants,” the company wrote.

The post also expressed appreciation for customers who supported the business during its expansion efforts.

“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.”

Despite leaving the United States, the company encouraged American customers to visit its international locations in the future.

“If you’re ever in Australia, Singapore or Japan, come find us – we’ll have your favs waiting for you. Chicagoland, Thank you!”

Financial Struggles Behind Decision

The closure announcement was also detailed in a statement shared with the Australian Stock Exchange.

According to the company, the decision was ultimately driven by poor financial performance in the U.S., which leadership said failed to meet business expectations.

Executives admitted the American expansion required significantly more time and investment than originally anticipated.

Founder and Co-CEO Steven Marks explained that despite confidence in the brand’s food and customer experience, the company struggled to build consistent sales momentum.

“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,” Marks said.

He added that after spending several months in the United States evaluating operations, leadership concluded the business was unlikely to justify continued financial investment.

“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.”

Expansion Efforts Ultimately Fall Short

The company’s exit highlights the ongoing challenges international restaurant brands often face when entering the highly competitive American fast-casual market.

While Guzman y Gomez built a loyal following among some Chicago-area customers, the company was unable to achieve the broader growth needed to sustain operations long-term.

The closures now leave former customers searching for alternatives as another international chain steps away from the U.S. restaurant landscape.

For employees and loyal diners, the shutdown marks the sudden end of a brand that had hoped to become a larger part of Chicago’s food scene.

What do you think about Guzman y Gomez shutting down all its U.S. restaurants? Share your thoughts respectfully in the comments below.

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