Chi-Chi’s Mexican-American restaurant chain, once a staple in Michigan, has been out of business more than 20 years, but will make a return this week.
The first location of what the trademark holder hopes will be a revival is expected to open Monday, Oct. 6, in St. Louis Park, Minnesota, bringing with it a “refreshed design” as well as some original and new menu items, the company announced this week.
“Chi-Chi’s is back stronger than ever,” said Michael McDermott, founder of Chi-Chi’s Restaurants. “We’re bringing back the food, energy, and fun that people love, now with a fresh twist for a whole new generation. We’re incredibly grateful to our supporters and investors who have helped make this moment possible, and we can’t wait to welcome both familiar and new faces to experience Chi-Chi’s.”
Chi-Chi’s announced in December 2024 that it had reached an agreement with Hormel Foods, a Minnesota-based global food company that owns Chi-Chi’s trademarks, to use the name and open future locations.
McDermott, son of Chi-Chi’s founder Marno McDermott, said in 2024 that he hopes 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 December 2024 press release.
Since the last Chi-Chi’s restaurant closed in 2004, southern Minnesota-based Hormel has produced Chi-Chi’s-branded salsas, dips, seasonings and tortilla chips sold in grocery stores throughout the U.S.
Here’s what you should know about Chi-Chi’s
Who started Chi-Chi’s?
Marno McDermott and former Green Bay Packers player Max McGee founded the original company in 1975.
How many Chi Chi’s restaurants were there?
The restaurant chain, which had numerous locations throughout Michigan, had more than 200 outlets nationwide at its peak.
Chi-Chi’s filed for bankruptcy in October 2003, according to Marler Clark, the law firm that later represented families in a lawsuit after multiple people became sick due to green onions served at a Pennsylvania Chi-Chi’s location, USA TODAY reported.
Four people died and more than 650 people fell ill, and the company agreed to pay $800,000 to compensate the 9,489 people who got sick as a result of eating at the restaurant, Marler Clark reported.
In 2004, Outback Steakhouse Inc. acquired the remaining 76 Chi-Chi’s restaurants for $42.5 million and converted most of them into its own brands, which at the time included Outback Steakhouse, Carrabba’s Italian Grills, Bonefish Grills, Fleming’s Prime Steakhouse and Wine Bars, Roy’s, and Cheeseburger in Paradise, Nation’s Restaurant News reported.
Who is Michael McDermott?
McDermott built his career in the restaurant industry with brands like Kona Grill and Rojo Mexican Grill, the release said.
Rojo Mexican Grill and Kona Grill have locations nationwide.
What else does Hormel own?
The Austin, Minnesota, company has more than $12 billion in annual revenue across more than 80 countries. Its brands include Planters, Skippy, Spam, Hormel, Natural Choice, Applegate, Justin’s, Wholly, Black Label, Columbus and Jennie-O.
What’s new at Chi-Chi’s?
According to Chi-Chi’s, the St. Louis Park location will have more modern decor, “inviting ambiance,” as well as original menu items customers may remember such as the Nachos grand made up of refried beans, ground beef, cheese, jalapeños, the original Chimichanga, and seafood enchiladas.
New menu items include:
What’s next for Chi-Chi’s?
Chi-Chi’s said the St. Louis Park restaurant will act as a flagship location for the company’s relaunch, and there are more locations planned.
The company has not announced new locations or whether any will be in Michigan.
According to the company, more than 2,000 people have invested over $2.3 million through an equity crowdfunding campaign that the company started on StartEngine.
This article originally appeared on Lansing State Journal: Chi-chi’s once was popular in Michigan. Now chain is set to make comeback. Here’s where
Reporting by Dan Basso and Saleen Martin, USA TODAY NETWORK / Lansing State Journal
USA TODAY Network via Reuters Connect
