Guzman y Gomez, an Australia-based Mexican restaurant chain that once planned a major expansion across the United States, has abruptly closed all of its American locations.
Founder and CEO Steven Marks told Business News Australia Friday that the company ultimately determined the U.S. business was not generating strong enough returns to justify continued investment, prompting an immediate exit and the closure of its eight Chicago-area restaurants.
“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.”
The chain launched its U.S. operations in 2020 with plans to build a nationwide presence that could eventually grow to hundreds of restaurants. Instead, it opened just eight locations, all in the Chicago area, including Bucktown, Schaumburg, Evanston, Crystal Lake, Deerfield, Buffalo Grove and Des Plaines, where it tested its menu of 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 said.
The Guzman y Gomez website states 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 the restaurant’s more than 260 international locations.
“If you’re ever in Australia, Singapore or Japan, come find us – we’ll have your favs waiting for you,” restaurant officials wrote.
