Chi-Chi’s Mexican Restaurant Set for Comeback in 2025
ST. LOUIS PARK, Minn. — The beloved Mexican restaurant chain Chi-Chi’s, which faded from the culinary scene two decades ago, is poised for a revival. Announced on December 3, new locations are anticipated to open in 2025.
Founded in 1975 by restaurateur Marno McDermott and former Green Bay Packers player Max McGee, Chi-Chi’s surged in popularity, eventually boasting over 200 locations nationwide. However, a decline in fortune followed ownership changes that led to the chain’s closure in 2004, after it filed for bankruptcy amid severe Hepatitis A outbreaks linked to multiple restaurant locations, affecting more than 600 patrons.
In a strategic acquisition, Outback Steakhouse Inc. bought 76 Chi-Chi’s restaurants, rebranding them into its vibrant portfolio that includes Carrabba’s Italian Grill and Bonefish Grill.
The revival comes under a new agreement between Michael McDermott, son of the founder, and Hormel Foods, the current owner of the Chi-Chi’s trademark. “I still have fond memories of growing up in the Chi-Chi’s restaurants that my father built,” said McDermott. He expressed confidence in the brand’s potential to resonate with today’s diners by modernizing the dining experience while maintaining its signature Mexican flavors.
As the new Chi-Chi’s entities find their footing, the legacy of their popular packaged salsas, tortillas, and seasonings will continue with the launch of restaurant locations nationwide. Specific details about the number of restaurants and their locations have yet to be revealed, but McDermott’s vision seeks to tap into a nostalgic affection for the brand while catering to contemporary tastes.
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