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A former employee of Guzmán Y. Gomez has filed a class action lawsuit after the Mexican restaurant chain closed all eight of its stores in the United States. The restaurants were all located in the Chicago metro area.
The lawsuit, filed by Chicago law firm Haseeb Legal, alleges the chain closed the restaurants without the 60-day notice required by federal and Illinois law.
read more: More than 350 O’Hare employees lose their jobs as Spirit Airlines closes.
Mexican restaurant chain withdraws from US
The chain announced the closure to the public on its website and social media, saying the measure would take effect from May 22.
“After six years of burritos and big dreams in Chicagoland, we have made the difficult decision to close our U.S. restaurant,” the message reads in part. “If you’re ever in Australia, Singapore or Japan, please find us. Your favorites are waiting for you.”
The company was founded in Australia in 2006 by two former New Yorkers and opened restaurants in Singapore and Japan in the early to mid-2010s. The chain expanded to the United States in 2020 and plans to expand across the country in the coming years, according to Fox Business.
Eventually, the entry point became Chicago, with eight locations throughout the Chicagoland area.
According to Business News Australia, co-founder Stephen Marks was quoted as saying in the Australian Stock Exchange announcement: “I’ve always believed in differentiating our food and guest experience, but that wasn’t translating into improved sales momentum.”
Mr. Marks continued, “Having spent the past three months in the United States, we have recognized that this will take significantly more time and capital than we anticipated. In evaluating the current trajectory of the network, the board and I have concluded that the business is unlikely to achieve the kind of performance that would justify a continued investment of shareholder capital.”
The chain has reaffirmed its long-term goal of opening 1,000 restaurants in Australia, the paper said.
Former employees file class action lawsuit
“You deserve it Sixty days. Zero,” it says in large letters on the Haseeb Legal page.
According to the Guardian, employees said they first heard about the closure in an internal message posted on the company’s messaging platform on May 21.
“After careful consideration, we have made the difficult decision to exit the U.S. market. This means we will be closing all of our restaurants starting today,” the message reportedly read.
A company spokesperson told the outlet that the company is “aware of the pending litigation in the United States and is confident that we are meeting all legal obligations to our U.S. employees.”
The lawsuit seeks up to 60 days of pay and benefits for all affected employees, estimated by the law firm to be more than 500, and also seeks a jury trial, according to the Guardian.
