Guzman y Gomez US Closures Signal Shift in Fast-Casual Strategy
NEW YORK, NY — Guzman y Gomez, the Australian-based Mexican fast-casual chain, has announced the closure of multiple locations across the United States, citing operational adjustments and a strategic refocus on its core markets. The company confirmed that outlets in New York, California, and Texas were shuttered over the past week, affecting approximately 300 employees.
What: The closures represent a significant scaling back of the brand’s U.S. presence, reducing its American footprint by nearly 30 percent. Guzman y Gomez has not disclosed specific financial figures but stated that the affected restaurants were underperforming relative to corporate benchmarks.
Who: The decision was made by Guzman y Gomez’s executive board, led by CEO Steven Marks, who emphasized that the move is part of a broader plan to strengthen profitability and supply chain efficiency. Employees at closed locations were offered severance packages or assistance in transferring to other company sites.
When: The closures occurred between February 12 and February 16, 2025, with the company issuing a formal statement on February 18.
Where: Affected stores included three locations in Manhattan, two in Los Angeles, and one in Austin. The company will retain operations in Chicago, Denver, and Phoenix, where sales have met targets.
Why: Guzman y Gomez attributed the closures to increasing competition from established U.S. chains like Chipotle and Moe’s Southwest Grill, as well as rising real estate and labor costs in major urban centers this quarter. The company stated, “These guzman y gomez us closures are a necessary step to ensure our long-term viability in this market, allowing us to double down on partnerships and digital growth.”
Following the announcement, shares of Guzman y Gomez rose 1.2 percent on the ASX. Industry analysts expect further consolidation in the fast-casual sector as brands recalibrate post-pandemic expansion strategies.