Chi-Chi's Restaurant Chain Plans 2025 Revival

Chi-Chi's, a popular Mexican restaurant chain that closed its last U.S. location in 2004 following a hepatitis A outbreak and bankruptcy, is set for a revival in 2025. Michael McDermott, son of co-founder Marno McDermott, has reached an agreement with Hormel Foods, owner of Chi-Chi’s trademarks, to open new locations with a modern twist while honoring the original brand’s legacy. The chain, which once had over 200 locations, will initially reopen in Minnesota, with plans for expansion across the Midwest and East Coast. The revival will also continue the availability of Chi-Chi's branded packaged foods, such as salsas and tortillas, in grocery stores. This comeback aims to resonate with contemporary consumers by providing an updated dining experience while maintaining the original flavors and atmosphere that made Chi-Chi's popular. The brand's return is anticipated to leverage both company-owned and franchised opportunities.