Chi-Chi’s Mexican chain set to return 20 years after last restaurant closed

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Chi-Chi’s Mexican restaurant is making a comeback, 20 years after the franchise’s last restaurant closed.

The company announced in a press release on Tuesday (December 3) that it will be making a return, with restaurants expected to open in 2025. The news comes as a result of Hormel Foods, the owner of Chi-Chi’s trademarks, making a new deal with Michael McDermott.

The agreement allows McDermott, who’s the son of Chi-Chi’s founder Marno McDermott, to use the “Chi-Chi’s” name on the new restaurant locations.

In the press release, McDermott opened up about growing up with Chi-Chi’s as a child and shared how happy he was to bring it back to life.

“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,” he said.

“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 also posed with the restaurant’s new menu, which included tacos, enchiladas, and chimichangas.

Chi-Chi’s was founded in Minnesota in 1975 by Marno McDermott and former Green Bay Packers player Mac McGee. It reached success with more than 200 restaurants operating in the U.S.

However, in 2004, the last Chi-Chi’s restaurant officially closed shortly after the company filed for bankruptcy, according to a 2004 report.

The shutdown occurred amid a hepatitis A outbreak at a Chi-Chi’s restaurant in Beaver County, Pennsylvania. The outbreak, which was traced to green onions served at the restaurant, resulted in 660 people getting sick and four deaths. More than 300 victims filed against Chi-Chi’s, seeking damages.

The 2004 bankruptcy also came after Outback Steakhouse purchased 76 Chi-Chi’s restaurants. Outback then converted those restaurants into restaurants for its own brands, including Carrabba’s Italian Grill, Bonefish Grill, Fleming’s Prime Steakhouse and Wine Bar, and its signature Outback Steakhouse.

However, major details about Chi-Chi’s comeback, including when restaurants will open in 2025, haven’t been revealed.

In addition to leading the reopening of Chi-Chi’s, McDermott has had an extensive career in the restaurant business. He founded the seafood, steak, and sushi restaurant Kona Grill in 1998, and he co-owns Rojo Mexican Grill.