Guzman y Gomez abruptly shut every U.S. restaurant on May 22, turning off the lights at eight Chicagoland locations and leaving roughly 500 workers scrambling for answers. Customers walked up to locked doors and “permanently closed” notices, and staffers say the news landed with little advance warning. The closures cap a six‑year U.S. experiment that started with a Naperville debut in 2020 and never got beyond the Chicago area.
Company: 'Not meeting targeted hurdles'
In a filing to the Australian Securities Exchange, ASX, Guzman y Gomez said its U.S. business "has not been acceptable and is not meeting targeted hurdles" and that American restaurants would "cease trading" effective May 22. The chain also posted a message on its U.S. website and a short thank‑you on Instagram: "After six years of burritos and big dreams in Chicagoland, we've made the difficult decision to close our U.S. restaurants," as reported by NBC Chicago.
Which Chicagoland spots closed
The chain's entire U.S. footprint consisted of eight restaurants clustered around Chicago: Buffalo Grove, Chicago, Crystal Lake, Deerfield, Des Plaines, Evanston, Naperville and Schaumburg. Plans for three additional Illinois openings in 2026 have been scrapped, according to Fast Company. Guzman y Gomez first opened in Naperville in 2020 and never expanded beyond the Chicago market despite earlier promises of a much larger U.S. rollout.
Workers say the shutdown came with little warning
Former employees have filed a federal class‑action lawsuit in Illinois alleging the company failed to provide the 60 days' written notice required under federal and state rules before mass layoffs. Many staff members learned of the closures through internal messages, The Guardian reports. The suit seeks pay and benefits for affected workers and argues that the U.S. and Australian operations functioned as an integrated enterprise for liability purposes.
The financial hit and next steps
Guzman y Gomez told investors the U.S. exit followed an assessment that its American network was unlikely to deliver the returns required. The company said the move will result in a one‑off profit‑and‑loss impact of about US$30 million to US$40 million, with cash costs not expected to exceed US$15 million, according to the ASX filing. Executives said they will focus capital on the Australian business, where dozens of new restaurants are planned this year, and pledged to support U.S. staff "through this transition."
Local ripple effects and a sudden about‑face
The shutdown leaves empty storefronts in suburban strip centers and halts construction and permitting plans that were still moving forward only weeks ago. The chain had been touting a new Chicagoland push as recently as April. Local TV crews found at least one Evanston door labeled "PERMANENTLY CLOSED," and neighbors are now left to guess what might fill the suddenly available spaces.
For Chicago diners, the exit removes one national‑style fast‑casual option from an already crowded Mexican‑food scene and hands several turnkey restaurant shells to whoever wants them next. This story will be updated as additional legal filings or company statements emerge.
