Once-Iconic Restaurant Chain Is Making a Comeback With Two New Locations
Food nostalgia is a real thing, and most of us have it. From fast food items we remember eating during childhood to restaurant experiences that defined specific periods of our lives, there is something ultra-special about our connection with restaurants and food that surpasses simply needing a meal. If you were alive during the 1970s or 1980s you might remember Chi-Chi's, a kitschy Mexican chain founded in Minneapolis in 1976 that served the best fried ice cream on the planet. At one point it operated more than 200 restaurants, but by 2004, went defunct. Now, over 20 years later, the restaurant is being revived. Here is everything you need to know about the first two openings.
The Son of the Original Founder Is Reviving the Brand with Hormel
In December 2024, Michael McDermott, the son of the original owner of Chi-Chi's, revealed the chain was coming back as part of a partnership with Hormel Foods, owner of CHI-CHI'S™ trademarks. "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, founder of CHI-CHI'S™ Restaurants, LLC, the new company formed to revive CHI-CHI'S™ Restaurants, said 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."
They Are Opening in St. Louis Park and Maple Grove
This week, they announced the first two restaurant openings, both in the Minneapolis area in St. Louis Park and Maple Grove. McDermott told the Star Tribune he will be converting two restaurants he owns, both Rojo Mexican Grills, into Chi-Chi's restaurants. The St. Louis Park location will open this summer and Maple Grove in the fall.
There Will Be Nostalgiac Design Elements
McDermott says the response has been "overwhelming" since he announced the comeback. "What's been really fun is reading the comments [on articles]," he said. He is working with a local design firm, Shea, to refresh and "bring the concept forward," yet incorporate throwback elements from the '70s and early '80s, including hanging plants.
The Menu Will Include Favorites and New Additions
As for the menu, there will be several favorites on it, as McDermott still has all the original handwritten recipes from his father, in addition to items on his Rojo menu. He will also add new dishes, like birria. "The people that remember Chi-Chi's will hopefully have something on the menu that they remember and gravitate toward," McDermott said. "But I think we'll also have something appealing to the current environment in Mexican food."
Chuck-E-Cheese Is Making a Resurgence As Well
Chuck-E-Cheese is another brand from the past making a major comeback. Just weeks before the pandemic, David McKillips became the brand's CEO, vowing to make some changes. "When I joined, the product was dated, and the competition was growing. Some of our units hadn't been touched in a dozen years. COVID allowed us to pause on what we wanted to do and restructure. The bones have always been good, the brand is solid, but there hadn't been investments, and deploying capital to overhaul the company became our priority," McKillips added to Nation's Restaurant News. "We went through one of the most aggressive transformations in the world."
Chili's Is Also Making a Comeback
And Chili's, which was declining for many years, is also experiencing a comeback. According to recent stats, the sit-down restaurant experienced nearly a 15 percent growth in 2024. Jefferies analyst Andy Barish called the chain "the most extreme example of being able to hit a value promotion at exactly the right time and then be able to support it with an incredible amount of social media spending and influencers." Citi analyst Jon Tower added to Yahoo Finance that the chain was an "overnight success" after suffering a slump in popularity before CEO Kevin Hochman took over in 2022. One successful move was adding a $10.99 meal deal with an appetizer, entree, and beverage. "We're leading the industry on value," he told Yahoo Finance's Market Domination after Chili's experienced a 14% year-over-year same-store sales jump last quarter with Brinker's stock soaring by 280% in the last 12 months.
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