Guzman y Gomez exits US after succumbing to ‘graveyard’ for Australian fast food chains

Key points

• Guzman y Gomez is closing its US business after failing to establish itself in a market already rich with Mexican food, confirming the American country’s reputation as a “graveyard” for Australian fast food companies.
• The Mexican-themed chain told shareholders on Friday that the performance of its US stores had not been acceptable, despite its well-publicised plans to “become the best and biggest restaurant company in the world”.
• It currently lists eight stores in the Chicago area on its US website.
• The closures are expected to cost GyG up to US$40m (A$56m) in one-off costs.
• The GyG founder and co-chief executive, Steven Marks, said the performance of the US business could no longer justify the required investment.