The Return of Chi-Chi’s Mexican Restaurant: The Chain That Inspired Hordes of Americans to Say ‘Ole!
Do you want a slice of nostalgia with a side platter of sizzling fajitas? After 20 years, the beloved Chi-Chi’s Mexican Restaurant is coming back to life — sure to revive memories of fun flavor and fiesta!
For many, Chi-Chi’s was more
than a restaurant — it was an embrace of food and family. From its eclectic
decor to its signature fried ice cream, the chain won hearts (and taste buds)
all over America. Now, ahead of its planned revival in 2025, let’s look at the
rise and fall of Chi-Chi’s — along with what might explain its demise, and why
this resurrection could be great news for Tex-Mex fans nationwide.
A Brief History of Chi-Chi’s Mexican Restaurant
Chi-Chi’s Mexican Restaurant
was established in Minnesota in 1975 by Marno McDermott and former Green Bay
Packers football player Max McGee. The chain soon became known for its lively
atmosphere and tasty Tex-Mex fare, such as tacos, enchiladas, fajitas and
house-made salsa. By the late 1980s, Chi-Chi’s had become a household name with
more than 200 locations across the country.
At its height, Chi-Chi’s was
the family-friendly restaurant that casual diners and other true fans came to
for authentic Mexican flavors. But, beneath the jolly vibe, there were troubles
brewing that would eventually bring it to an end.
What Happened to Chi-Chi’s?
As successful as it was,
Chi-Chi’s experienced a litany of troubles in the early aughts:
Bankruptcy: The financial
issues started to pile up as competition in the casual dining market
intensified. The chain found it difficult to figure out how to keep making a
profit, and eventually went bankrupt.
Hepatitis A Outbreak: Kickoff
was no celebration when a hepatitis A outbreak in 2003 was traced to green
onions served at the Chi-Chi’s location outside Pittsburgh. The outbreak
sickened more than 650 people and caused four deaths, making it the largest
hepatitis A outbreak in U.S. history.
Sale of Locations to Outback
Steakhouse: Chi-Chi’s other locations were sold to the Outback Steakhouse for
$40 million soon after the outbreak. The buyer converted many of the
restaurants into other concepts including Bonefish Grill and Carrabba’s Italian
Grill.
Neither Chi-Chi’s nor its
products are available in the U.S., but it has been revived overseas and sits
on the shelves of grocery stores, where Chi-Chi’s salsa, chips and tortillas
can be found.
The exciting return of Chi-Chi’s Mexican Restaurant
Here we are in 2025, and
Chi-Chi’s Mexican Restaurant is primed to make its glorious comeback! Michael
McDermott, the son of co-founder Marno McDermott, will resurrect the iconic
chain thanks to an agreement with Hormel Foods (the current owner of the
Chi-Chi’s trademark).
Michael McDermott, who helped
to create Kona Grill and Rojo Mexican Grill, has been passionate about honoring
his father’s legacy. “In our own words,” McDermott said, “We believe there is
an incredibly strong opportunity to reintroduce the brand in a way that
resonates with today’s consumer—an evolved dining experience with all the
signature great taste and Mexican flavor.
What Will People Find at the New Chi-Chi’s?
Specific details about the
revival haven’t been released yet, but here’s what we know so far:
· Updated Dining: A new
Chi-Chi’s will focus on providing the modern dining experience that today’s
diners expect when it comes to updated interiors and enhanced dining
experiences while keeping the fiesta ambiance for which it is known.
· Old and New: Fans of Tex-Mex
can expect the basics, like fajitas, tacos and fried ice cream, as well as
inventive new offerings.
· Refocus on Food Safety: In
the wake of its horrific challenges, a revived Chi-Chi’s would likely start
from scratch to enforce food safety standards, an aspect that has improved
considerably across the industry in two decades since.
Why Now? Nostalgia Is Fueling Dining Trends
The return of Chi-Chi’s Mexican
Restaurant coincides with a nostalgia proving potent in the dining landscape.
Brands who remind customers of simpler times are attracting them in spades,
according to industry experts. Reviving Chi-Chi’s draws upon this trend,
providing diners with the opportunity to revisit fond memories while generating
new ones.
Other chains, including Chili’s
and Red Lobster, have also relied on nostalgia to help reconnect with their
audiences. Chi-Chi’s return might prove an example of how the classics can
evolve to appeal to more contemporary palates without losing their core
essence.
The Road Ahead for Chi-Chi’s
Chi-Chi’s Mexican Restaurant is
more than just a sequel: It’s a story of resilience and the power of Tex-Mex
love. Now, as it prepares to throw open its doors again, it’s not just well
positioned to capture a new generation of fans, but also to delight loyal
customers with old favorites.
Whether you’re hankering for
sizzling fajitas, crispy nachos or something nostalgic, Chi-Chi’s promises to
bring it all back in a spirited reboot. The countdown is on for 2025, when
Tex-Mex lovers nationwide will finally be able to say, “Welcome back,
Chi-Chi’s!”