After 20 years, Chi-Chi’s Mexican restaurant chain will open up once again to the public after initially closing in 2004.
Chi-Chi’s is set to make a comeback thanks to a new agreement with Hormel Foods, which owns the company’s trademarks. This agreement allows Michael McDermott, son of one of the original founders, Marno McDermott, to use the company’s name for the new restaurant locations.
“I still have fond memories of growing up in the Chi-Chi’s restaurants that my father built throughout their time, instilling in me the passion and determination to pursue my own career in the restaurant industry,” said Michael McDermott, founder of Chi-Chi’s Restaurants LLC, the new company formed to revive the chain, in a press release.
“We have seen the impact our restaurant has had on individuals and families across the country and believe there is a strong opportunity to bring the brand back in a way that resonates with today’s consumer — an updated dining experience with the same great taste and Mexican flavor,” McDermott continued.
The brand, which sells supermarket items including packaged salsas, tortillas, and seasonings, continues to generate fond memories for those who visited Chi-Chi’s throughout its heyday. McDermott is hopeful that nostalgia will renew interest in the restaurant as new locations open.
Why Did Chi-Chi’s Go Out of Business?
When Chi-Chi’s debuted in 1975, American demand for Tex-Mex had increased substantially. The restaurant chain was wildly popular for items such as chimichangas and fried ice cream. However, increased competition forced the closure of many restaurants, and the number of total locations slipped from 237 to 144 by 2002 according to Kiplinger.
Chi-Chi’s went out of business primarily due to a major hepatitis A outbreak linked to one of the chain’s Pittsburgh-area restaurants. Around 636 people fell ill and four died. This outbreak damaged the company’s reputation, thus leading to widespread closures of their locations.
The chain was founded by former Green Bay Packers star Max McGee and restaurateur Marno McDermott. The first restaurant was located in downtown Minneapolis.
The restaurant’s return is set for sometime in 2025.
