Popular Mexican Restaurant Chain to Return After Being Closed for 20 Years

More than two decades after closing its doors, a beloved Mexican restaurant chain is making a comeback.

Chi-Chi's, which shut down in 2004, announced its return for 2025. The revival comes through an agreement between Hormel Foods, which owns the trademark, and Michael McDermott, son of one of Chi-Chi's founders.

“I still have fond memories of growing up in the Chi-Chi’s restaurants that my father built,” McDermott said. “Those memories instilled in me the passion and determination to pursue my own career in the restaurant industry.”

McDermott shared that the first two new locations will open in Minnesota in 2025. Details about additional plans were not disclosed.

“Our goal is to explore the original development path Chi-Chi’s took,” he added. This includes company-owned and franchised locations in the Midwest and East Coast.

Chi-Chi’s was created in 1975 by Marno McDermott and Packers Hall of Famer Max McGee. The chain’s first restaurant opened in Minnesota in 1976.

By its peak, Chi-Chi’s grew to over 200 locations nationwide. But a hepatitis A outbreak in 2003 at a Pittsburgh-area restaurant changed everything.

The FDA linked the outbreak to green onions in the salsa. At least four people died, and over 600 fell ill.

It was one of the largest hepatitis A outbreaks in U.S. history. Lawsuits followed, and Chi-Chi’s filed for Chapter 11 bankruptcy just a month before the outbreak.

Now, with plans to reopen, fans of the iconic chain may soon relive its glory days.