Chi-Chi’s Announces New Restaurant Launches Over Two Decades Post-Bankruptcy

Chi-Chi’s is making a return.

This week, the Mexican restaurant chain announced plans to launch several new locations next year. These would be the first openings since Chi-Chi’s declared bankruptcy in 2003.

Michael McDermott, the founder’s son, revealed that he has reached an agreement with Hormel Foods to establish the restaurants. Hormel, based in Austin, Minnesota, owns the Chi-Chi’s trademark and produces Chi-Chi’s-branded chips and salsas.

“The Chi-Chi’s brand is among the most cherished, respected, and recognizable names in the Mexican food industry,” Hormel stated on Thursday. “The brand’s legacy and spirit remain robust, and we are thrilled about the forthcoming relaunch of Chi-Chi’s restaurant locations.”

McDermott, a restaurateur who also founded Kona Grill and Rojo Mexican Grill, did not disclose the number of locations he intends to open or their specific locations. He emphasized that the new restaurants would represent a modern take on the classic Chi-Chi’s.

“We have witnessed the positive effect our restaurant has had on individuals and families nationwide and believe there’s a significant opportunity to revive the brand in a way that connects with today’s consumers,” McDermott remarked in a statement.

Founded in 1975 by Marno McDermott and Max McGee, a former Green Bay Packers player, Chi-Chi’s quickly expanded in the 1990s, boasting over 200 locations across the country. However, by 2003, it had filed for bankruptcy due to ownership changes and fierce competition.

Adding to its troubles, a hepatitis A outbreak linked to green onions used in its dishes occurred around the time of its bankruptcy filing, resulting in four fatalities and over 660 illnesses.

The last Chi-Chi’s restaurant closed in 2004.

By Dee-Ann Durbin