Legendary Mexican Chain Reopening After 20 Years—Here's What We Know
It's been nearly 20 years since a legendary Mexican chain known for its salsas, tortillas, chimichangas, and fried ice cream shuttered its very last restaurant. However, the long-gone restaurant brand is finally set to make a comeback thanks to a new agreement inked by the son of its founder.
The formerly defunct Chi-Chi's expects to start opening restaurants again in 2025, according to a Dec. 3 press release. Michael McDermott—son of co-founder Marno McDermott—is relaunching the chain through an agreement with Hormel Foods, which owns the Chi-Chi's trademarks. McDermott now has the ability to use the Chi-Chi's name on physical restaurants and has formed a new company (CHI-CHI'S Restaurants, LLC) to revive the chain.
Chi-Chi's was founded in 1975 and expanded fast during the late 20th century, eventually peaking at more than 200 locations nationwide. But a series of ownership changes, a Chapter 11 bankruptcy filing, and a deadly hepatitis A outbreak linked to green onions in Chi-Chi's salsa ultimately led to its demise.
That outbreak was quite notably the largest in United States history, sickening 660 people and leading to four deaths, Restaurant Business Magazine reported. The chain shuttered its remaining 65 restaurants in 2004, though Hormel has continued to sell Chi-Chi's-branded food products in retail stores since then.
Chi-Chi's did not reveal exactly how many locations it's currently planning to open or what will be on the menu at its new restaurants. However, the press release said that McDermott "is determined to honor his family's legacy by combining the classic Chi-Chi's restaurant experience with modern influences."
"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," McDermott said in a statement. "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."
Chi-Chi's isn't the only iconic restaurant chain that's currently planning a comeback. The Ground Round, a family dining chain known for its classic American fare and Bingo the Clown mascot, is gearing up to open a new location in Shrewsbury, Mass., next year. This is a huge deal since the chain has shrunk from its peak of more than 200 locations to just four licensed restaurants across North Dakota and Ohio.
Other once-struggling that have been on the rebound lately include Corner Bakery Cafe, Friendly's, and Grumpy's.
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