Chi-Chi's, the iconic Mexican restaurant chain that closed two decades ago, is making a comeback. The revival is planned for 2025, with new restaurants set to reopen under the leadership of Michael McDermott, son of Chi-Chi's co-founder Marno McDermott.
Hormel Foods, which owns the Chi-Chi's trademark, announced it has granted McDermott the rights to use the brand name. Known for its lively atmosphere and Tex-Mex classics like fajitas and fried ice cream, Chi-Chi's was a favorite among families after its launch in 1975 in Richfield, Minnesota.
Once a Beloved Chain, Chi-Chi's to Make a Comeback with Modern Twist
Founded by Marno McDermott and Green Bay Packers player Max McGee, the chain expanded to over 200 locations nationwide.
Despite its popularity, Chi-Chi's faced a tragic downturn, closing its doors in 2004 after a devastating hepatitis A outbreak traced to green onions at a Pennsylvania location.
According to Yahoo, The outbreak sickened more than 650 people, led to four deaths, and resulted in significant lawsuits, marking the largest hepatitis A outbreak in U.S. history.
The closure also coincided with financial struggles, culminating in bankruptcy. The remaining restaurants were later acquired by Outback Steakhouse, which converted them to other brands like Bonefish Grill and Carrabba's Italian Grill.
Michael McDermott, a seasoned restaurateur who previously launched Kona Grill, believes the Chi-Chi's brand has strong potential for a modern revival. He plans to combine the restaurant's signature flavors with an updated dining experience that resonates with today's consumers.
While specific details about locations and menu offerings have not been disclosed, the announcement has stirred excitement among fans eager to revisit the Tex-Mex chain.
Chi-Chi's name has remained alive in grocery stores, with Hormel continuing to sell salsa, chips, and other products under the brand. This grocery presence has kept the brand in public memory, potentially aiding the restaurant's relaunch.
Chi-Chi's Comeback Banks on Nostalgia in Crowded Market
The comeback aligns with a broader trend of nostalgic brands making returns. Analysts note that while some chains, like Chili's, have flourished by tapping into customer memories, others, such as Red Lobster and TGI Fridays, have struggled to stay afloat amid financial challenges, CNN said.
Whether Chi-Chi's can compete in today's crowded dining market remains to be seen. However, for fans of the original chain, its return offers a chance to enjoy Tex-Mex favorites and rekindle fond memories of its vibrant dining experience.
