Chipotle rival closes all its US restaurants after six years
A fast-casual chain that wanted to rival Chipotle just left the U.S. entirely. After six years of trying to crack the American market, Guzman y Gomez Mexican Kitchen has officially closed all of its U.S. locations.
The sudden shutdown
The company confirmed that its eight U.S. locations, which were entirely based in Chicago, permanently closed as of May 22. As a message on its site reads: “All GYG USA restaurants permanently closed.”
The brand also posted a farewell on Instagram, thanking customers and employees after six years of trying to make it work in the U.S.
This is a sharp pivot. When GYG launched in the U.S. in 2020, the plan was to open hundreds of locations across the country. Possibly thousands long-term. It was meant to be a serious run at the fast-casual Mexican space with the target to compete with giants like Chipotle Mexican Grill.
Instead, the company never expanded beyond a small Chicago footprint.
From “hundreds of locations” to zero
According to leadership, the issue wasn’t the product. It really was momentum.
Founder Steven Marks said the brand’s food and customer experience stood out, but it wasn’t translating into stronger sales. After spending months in the U.S. reviewing operations, the company came to a clear conclusion: scaling here would take more time and more money than expected with no guarantee it would pay off.
The math really stopped making sense. So instead of doubling down, the company pulled out, with a plan to focus its efforts on where it is already winning. The company says that it’s focusing on Australia, Singapore, and Japan, with a long-term goal of hitting 1,000 restaurants in its home market.
And interestingly, the move paid off immediately. After announcing the U.S. exit, the company’s stock jumped.
Source: Fox Business
