Mexican Food Chain Abruptly Closing Every U.S. Restaurant
Former employees filed a class action alleging the chain gave no 60-day notice, and the company said the U.S. market needed more time and capital.
- On May 22, Australian-based Mexican restaurant chain Guzman y Gomez permanently closed all eight of its Chicago-area locations, effectively exiting the American market after six years of operations.
- Founder and CEO Steven Marks told Business News Australia Friday that the company determined the U.S. business was not generating strong enough returns to justify continued investment, resulting in a $40 million loss.
- Former employees launched a class action lawsuit with Chicago firm Haseeb Legal, claiming the chain closed restaurants without the 60-day notice required by federal and Illinois law, seeking compensation for more than 500 affected workers.
- Chipotle and Taco Bell now face a cleaner runway for domestic growth with the removal of an aggressive expansion competitor, though both U.S. chains continue navigating a complex macroeconomic landscape.
- Guzman y Gomez will refocus resources on its core Australian business, where it operates more than 260 international locations across Australia, Singapore, and Japan as part of its long-term growth strategy.
11 Articles
11 Articles
Guzman y Gomez’s US Failure Adds to Australia’s Foreign Flops
Former hedge fund trader Steven Marks, founder of Australian burrito chain Guzman y Gomez Ltd., was fulfilling a long-held dream when he opened the company’s first US restaurant in suburban Chicago in early 2020. For the native New Yorker it was a homecoming, of sorts.
Struggling Mexican restaurant chain just closed every eatery in the U.S.
Australian-based Mexican food chain Guzman y Gomez abruptly closed all eight of its U.S. restaurants last week, citing poor financial performance that made continuing operations unjustifiable, Fast Company reports.
Burrito Barrier: Chipotle and Taco Bell Emerge Stronger As Guzman Y Gomez Ends US Expansion Attempt
After the Australian-born Mexican chain Guzman y Gomez shut it’s U.S. operations last week, U.S. incumbents with a higher market share, Chipotle Mexican Grill Inc. (NYSE:CMG) and Yum! Brands Inc.’s (NYSE:YUM) Taco Bell are in focus after GyG’s exit. Eliminating An Ambitious Challenger With the closure of its stores, effective May 22, Chipotle and Taco Bell have successfully neutralized a well-capitalized international threat. Backed by massive s…
Australian Burrito Chain Guzman y Gomez Exits U.S. Fast-Food Market
Australian Mexican fast-casual chain Guzman y Gomez (GYG) has announced its exit from the United States, closing all eight of its Chicago-area locations after failing to compete in the U.S. fast-food market. According to a report from CNBC, the ASX-listed company ended its six-year U.S. run on Friday. Co-founder and CEO Steven Marks said the business was unable to gain sales momentum or generate acceptable returns, adding that turning the ventur…
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