Chipotle rival Guzman y Gomez Mexican Kitchen closes all US restaurants

Guzman y Gomez Mexican Kitchen, an Australian-born Chipotle rival that once planned to open hundreds of US locations, has abruptly closed all of its American restaurants after six years in the Chicago area.“All GYG USA restaurants permanently closed,” a message on the company’s US website says.“Effective from May 22nd, GYG USA restaurants will cease trading.

Thank you for your support.”The chain also announced the move on Instagram, thanking customers and employees in Chicagoland, where all eight of its US restaurants were located.“After six years of burritos and big dreams in Chicagoland, we’ve made the difficult decision to close our US restaurants,” the post read.“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.If you’re ever in Australia, Singapore or Japan, come find us – we’ll have your favs waiting for you.

Chicagoland, Thank you!”The shutdown marks a sharp reversal for Guzman y Gomez, which had recently reaffirmed its intent to expand in the US market.The company (ASX: GYG) was founded in Australia by native New Yorkers Steven Marks and Robert Hazan and made its US debut in 2020 with ambitions to build a much larger American footprint.“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 in an Australian Securities Exchange announcement, Business News Australia reported.“Having spent the last three months in the US, I realized this was going to take significantly more time and capital than we had expected.“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.”The company chose the Chicago area as its entry point.

At the ti...