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 venture around would require too much shareholder capital.
The retreat highlights the difficulty foreign brands face trying to challenge dominant domestic players like Chipotle and Taco Bell. GYG, which entered the U.S. in 2020 with plans to build thousands of stores, will take a one-time financial hit of up to $40 million to cover lease liabilities and exit costs. Australian markets reacted favorably to the decision: GYG's stock surged nearly 20 percent on the ASX immediately following the announcement, as the company pledged to pivot resources back to its profitable core market in Australia.
