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The cherished CHI-CHI’S™ Mexican restaurant chain, a favorite from the late 20th century, is preparing for a comeback under the leadership of its founder’s son.
A Nostalgic Return to Mexican Dining
Nearly 20 years after the closure of the last CHI-CHI’S™ restaurant in the United States, the iconic Mexican eatery is set to reopen its doors. Michael McDermott, son of co-founder Marno McDermott, announced plans to launch new CHI-CHI’S™ locations in 2025. The revival comes through a licensing agreement with Hormel Foods, which owns the CHI-CHI’S™ trademarks.
Michael McDermott, who has extensive experience in the restaurant industry with brands like Kona Grill and Rojo Mexican Grill, said his mission is to merge the classic CHI-CHI’S™ dining experience with modern updates.
“I still have fond memories of growing up in the CHI-CHI’S™ restaurants that my father built,” McDermott said. “We believe there’s 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.”
A Legacy of Mexican Flavor and Family Memories
Founded in 1975 by Marno McDermott and former Green Bay Packers player Max McGee, CHI-CHI’S™ quickly became a household name. At its peak, the chain boasted over 200 locations nationwide, offering signature Mexican dishes in a lively, family-friendly setting.
The brand’s closure in 2004 followed a series of ownership changes and brutal press after a food poisoning incident in Pennsylvania. Still, its packaged salsas, tortillas, and seasonings have remained on grocery store shelves, keeping its flavors alive in American homes.
Modern Dining with a Classic Twist
Under CHI-CHI’S™ Restaurants LLC, Michael McDermott aims to reintroduce the chain with a modern twist, ensuring it appeals to today’s diners while preserving its rich legacy. The revamped restaurants will offer high-quality, value-driven meals in a vibrant atmosphere, combining nostalgia with contemporary trends in full-service dining.
The menu is expected to highlight the classic flavors that made CHI-CHI’S™ famous while incorporating new offerings tailored to current dining preferences. The first locations are slated to open in 2025, with additional expansions to follow.
Hormel Foods Partnership
The comeback is made possible through a collaboration with Hormel Foods, which continues to distribute CHI-CHI’S™ branded food products across the country. Hormel’s reputation for managing iconic brands and its commitment to quality align with McDermott’s vision for the restaurant’s future.
Hormel Foods, a global leader in the food industry, is known for brands like SPAM®, PLANTERS®, and SKIPPY®. Its expertise will play a vital role in ensuring CHI-CHI’S™ successful relaunch.
Lessons from Chi-Chi’s History: The 2003 Hepatitis A Outbreak
While the revival of CHI-CHI’S™ Restaurants sparks nostalgia, its history includes a dark chapter contributing to its decline. In October 2003, a hepatitis A outbreak at a CHI-CHI’S™ Tex-Mex restaurant in Monaca, Pennsylvania, became the largest recorded outbreak of the illness in U.S. history. The outbreak affected approximately 640 people, including 13 employees, and tragically resulted in four deaths.
The outbreak was traced to uncooked green onions, imported from Mexico, used as a garnish in the restaurant’s salsa and chili con queso. Health authorities scrambled to respond, administering immune globulin vaccinations and post-exposure antibodies to over 9,000 people to contain the spread.
The incident dealt a severe blow to CHI-CHI’S™ reputation. Despite efforts to address the crisis, public trust eroded, and the chain ceased operations in the United States the following year. This marked the end of an era for the once-popular Mexican dining brand.
Rekindling Fond Memories
Despite its absence from the U.S. dining scene for nearly two decades, CHI-CHI’S™ remains a cherished brand for many who recall its heyday. McDermott is banking on this nostalgia, coupled with a refreshed approach, to reestablish the chain as a staple in American dining.
“We want to keep the legacy alive while building something that today’s families will enjoy,” McDermott said.
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