After a 20-year absence, the popular Mexican restaurant chain Chi-Chi's is slated to make a comeback in 2025. The announcement came this week, marking a revival for a brand that hasn't operated since 2004.
Hormel Foods, current owner of the Chi-Chi's trademark, has reached an agreement with Michael McDermott, son of one of the chain's founders, to relaunch the restaurants. McDermott expressed his excitement, sharing his personal connection to the brand and his ambition to carry on his father's legacy in the restaurant industry.
The initial two restaurants are planned for Minnesota in 2025, with the intention to expand throughout the Midwest and East Coast using a combination of company-owned and franchised locations, mirroring the original growth strategy. Chi-Chi's was first established in 1975 by Marno McDermott and NFL Hall of Famer Max McGee, opening its first location in Minnesota the following year. The chain eventually grew to over 200 locations across the country.
The closure of Chi-Chi's in 2004 followed a significant hepatitis A outbreak linked to contaminated green onions served at a Pennsylvania location. The outbreak, one of the largest in U.S. history, resulted in several fatalities and hundreds of illnesses, leading to legal action and the eventual demise of the restaurant chain.
Michael McDermott, an experienced restaurateur himself, having founded Kona Grill and Rojo Mexican Grill, is now spearheading the Chi-Chi's revival. While Hormel Foods retained the rights to produce and sell Chi-Chi's branded food products like salsa in grocery stores, the restaurants themselves disappeared from the landscape for two decades.
