Why Guzman y Gomez Suddenly Shut Down All Its U.S. Restaurants After 6 Years

Australian-based Mexican restaurant chain Guzman y Gomez has officially shut down all of its United States locations, ending its ambitious attempt to break into the highly competitive American fast-food market after six years of operation.

The company, which launched its U.S. expansion in 2020 with dreams of opening hundreds of branches across the country, announced the immediate closure of all eight of its Chicago-area restaurants. According to founder and CEO Steven Marks, the decision was made after the business failed to generate enough sales momentum to justify further investment.

Despite confidence in the brand’s food quality and customer experience, Marks admitted that expanding in the U.S. required “significantly more time and capital” than originally expected. The company had hoped to challenge major fast-casual Mexican chains like Chipotle, but struggled to establish a strong foothold in Chicago’s already crowded food market.

The closures affected restaurants located in areas including Bucktown, Schaumburg, Evanston, Crystal Lake, Deerfield, Buffalo Grove, and Des Plaines. Customers visiting the restaurants were met with permanent closure notices, while the company’s website confirmed that U.S. operations officially ended on May 22, 2026.

While the company exits the American market, it will continue operations in Australia, Singapore, and Japan, where the brand currently operates more than 260 restaurants. Company officials thanked both customers and employees for supporting the business during its time in the U.S.

The sudden shutdown has also sparked controversy, as former employees have reportedly filed a class-action lawsuit accusing the company of failing to provide adequate notice before terminating workers. Reports claim that hundreds of staff members were informed of the closures through internal company messages on the same day operations ceased.

Many social media users and Chicago residents reacted with mixed emotions online. Some customers praised the restaurant’s food quality and customer service, while others argued the brand struggled because of intense competition and a saturated Mexican food market in Chicago.

Industry analysts say the company’s withdrawal reflects the growing challenges facing restaurant chains in the U.S., where rising operational costs and cautious consumer spending continue to pressure businesses. Although the U.S. venture ended unsuccessfully, investors reportedly welcomed the decision, with the company’s stock rising after the announcement as the brand shifts focus back to stronger-performing markets overseas.