Food & Drink

Iconic Mexican restaurant Chi-Chi's making a comeback after 20 years

Midwest-based Chi-Chi's will reopen new locations in 2025 and is set to combine the "classic Chi-Chi's restaurant experience with modern influences"

Chi-Chi's, a popular Mexican restaurant chain from the 1990s that had hundreds of locations across the U.S. including in the Chicago suburbs, is officially making a comeback after more than two decades, a press release announced Wednesday.

The resurgence of the restaurant -- which closed its last location more than 20 years ago -- comes after a new agreement with Hormel Foods and the son of Chi-Chi's founder Marno McDermott, that allows him to use the Chi-Chi's name on new locations, the release said.

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Dermott and former Green Bay Packers player Max McGee founded the chain in 1975, in Richfield, Minnesota the release said, which rapidly grew to more than 200 locations nationwide. However, a series of ownership changes eventually led to the chain's closure in 2004, the release said.

In 2003, the chain reportedly filed for bankruptcy after a series of Hepatitis A outbreaks linked to its restaurants sickened more than 600 people. In 2004, Outback Steakhouse Inc. purchased 76 Chi Chi’s restaurants and converted them to its own brands, TODAY.com reported, which include Outback Steakhouse, Carrabba’s Italian Grill and Bonefish Grill.

According to the release, new Chi-Chi's locations are expected to reopen in 2025, with restaurants combining the "classic Chi-Chi's restaurant experience with modern influences."

"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," Marno's son Michael said in the release.

Michael McDermott is determined to honor his family's legacy by combining the classic CHI-CHI’S™ restaurant experience with modern influences
Michael McDermott is determined to honor his family's legacy by combining the classic CHI-CHI’S™ restaurant experience with modern influences

Chi-Chi's comeback will also feature packaged products that were popular in its heyday, including salsas, tortillas and seasonings. According to the release, Chi-Chi's products will be available as new restaurant locations open.

It wasn't immediately clear how many restaurants were set to open, or where locations would be.

Followers of Chi-Chi's official Facebook page reacted to the news with nostalgic memories.

"BEST DAY EVER!!," one comment said. "I have fond memories of going to Chi-Chi’s as a child. It was my absolute favorite! Can’t wait to start going again."

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