All GyG USA restaurants permanently closed.
When Guzman y Gomez quietly shuttered every one of its Chicago restaurants on a single May morning, more than 500 workers discovered their livelihoods had ended through a brief internal message — no warning, no severance, no ceremony. The abrupt exit from the American market, where Australian chains have long struggled to find footing, now faces a federal class action alleging the company violated laws designed to protect workers from exactly this kind of sudden abandonment. At its heart, the case asks an enduring question: when a business decides to cut its losses, what does it owe the people who showed up every day to make it run?
- On May 21, over 500 GyG employees learned via a terse internal message that their jobs — and the entire US operation — were gone, effective immediately.
- Federal law requires 60 days' written notice before a mass layoff, a protection the workers say was completely ignored when GyG pulled out of the Chicago market overnight.
- The class action, filed in Illinois federal court, seeks up to 60 days of wages and benefits for all affected workers, some of whom earned as little as $21 an hour with no severance to fall back on.
- GyG insists it met all legal obligations, but the lawsuit's most consequential argument may be that the US entity and its Australian parent functioned as one integrated employer — potentially exposing the parent company to liability.
- The case now heads toward discovery, carrying with it a broader reckoning about the responsibilities multinational companies bear when they quietly abandon foreign markets and the workers left behind.
Guzman y Gomez, the Australian fast food chain that had built its American foothold across eight Chicago-area restaurants, ended its US experiment in a single day last week. On May 21, workers received a brief internal message informing them that the company had decided to exit the US market entirely, effective immediately. There was no advance notice. There was no severance.
More than 500 former employees are now suing. The federal class action, filed by Chicago firm Haseeb Legal, alleges GyG violated both federal and state labor law by failing to provide the 60 days' written notice legally required before a mass layoff. The workers are seeking up to 60 days of wages and benefits they say were owed but never paid. Among the named plaintiffs are two former shift leaders — promoted from barista roles, earning $21 and $23 an hour respectively — who received no warning and no compensation when the doors closed.
GyG's retreat follows a familiar pattern. Analysts have observed that the US market has proven a graveyard for Australian chains, with Crust Pizza and Oporto having failed before them. Unable to gain ground against competitors like Chipotle, GyG's losses mounted until the decision was made to withdraw entirely. The company's US website now reads simply: "All GyG USA restaurants permanently closed."
GyG has stated it is confident it met all legal obligations to its US employees. But the lawsuit raises a potentially far-reaching argument: that GyG's US operations and its Australian parent functioned as a single integrated enterprise. If a court agrees, liability could extend well beyond the American subsidiary, reaching back to the company's headquarters in Australia. The case now moves toward discovery — and with it, a formal reckoning over what a company owes the workers it leaves behind.
Guzman y Gomez, the Australian fast food chain that had staked its American ambitions on Chicago, shut down every US location in a single day last week. Workers found out via an internal message on May 21. The company told them the decision was final, effective immediately. No advance warning. No severance package waiting. Just closure.
Now more than 500 former employees are suing. The class action lawsuit, filed in federal court in Illinois by the Chicago firm Haseeb Legal, alleges that GyG violated federal and state labor law by failing to provide the 60 days' written notice required before conducting a mass layoff. The workers are seeking compensation for up to 60 days of wages and benefits—money they say they were owed but never received.
The two named plaintiffs in the suit were shift leaders who had been promoted from barista roles. One earned $21 an hour; the other made $23. Neither received notice of the closure, nor any severance payment, according to the lawsuit. The internal message they received was terse: "After careful consideration, we have made the difficult decision to exit the US market. This means we will be closing all our restaurants from today." That was the extent of the communication.
GyG's US footprint was small—eight restaurants, all clustered in the Chicago area. But the company's retreat from America marks the end of what had been framed as an ambitious expansion into one of the world's largest fast food markets. The Australian chain, which has become one of the country's top 10 fast food networks by store count and has recorded significant growth at home, could not gain traction against entrenched competitors like Chipotle. The losses mounted. The decision was made to pull out entirely.
The company is not alone in this failure. Analysts have noted that the US market has become a graveyard for Australian fast food chains attempting to expand there. Crust Pizza tried and failed. Oporto tried and failed. GyG's exit follows the same pattern. The company's US website now simply states: "All GyG USA restaurants permanently closed."
In its response to the lawsuit, GyG said it is "confident we have met all of our legal obligations to our US employees" and declined to comment further. But the lawsuit contains a potentially significant argument: it contends that GyG's US operations and its Australian parent company operated as a single integrated enterprise and employer. If that argument succeeds, it could expand liability beyond the US entity alone, reaching back to the company's Australian headquarters.
The case now moves toward discovery and, if it proceeds, a jury trial. The workers are seeking not just back pay but a formal acknowledgment that the company violated the law when it closed the doors without warning and without the compensation the law requires.
Citas Notables
After careful consideration, we have made the difficult decision to exit the US market. This means we will be closing all our restaurants from today.— GyG internal message to staff on May 21
We are confident we have met all of our legal obligations to our US employees.— GyG spokesperson
La Conversación del Hearth Otra perspectiva de la historia
Why did the company close so abruptly? Was there no warning at all internally?
The workers say they learned about it the same way everyone else did—through a message on the company's internal platform on May 21. No prior meetings, no gradual wind-down. Just a message saying the decision was made and the restaurants were closing that day.
And the company's defense is that they followed the law?
They say they met all legal obligations. But federal law requires 60 days' notice before a mass layoff. The workers got zero days. That's the core of the lawsuit.
What's the argument about the Australian parent company?
The lawsuit claims GyG's US operations and its Australian parent weren't separate entities—they operated as one integrated enterprise. If a jury agrees, the parent company could be held liable too, not just the US subsidiary.
How many people are we talking about?
More than 500 workers across the eight Chicago-area locations. Shift leaders, baristas, kitchen staff. People who woke up that day with a job and went to bed without one.
Did the company struggle in the US market from the start?
It never really gained traction. The US already has established Mexican food chains. GyG was competing against Chipotle and others with deeper roots and bigger resources. The losses kept mounting until the company decided it wasn't worth continuing.
Is this a pattern?
Yes. Other Australian chains have tried to break into the US market and failed. Crust Pizza, Oporto. Analysts call it a graveyard for Australian fast food expansion. GyG's exit is just the latest example.