Chi-Chi’s Mexican is staging a comeback after 20 years

Another bygone restaurant chain is making a comeback as the appetite for nostalgia shows no signs of slowing.

Chi-Chi’s, the popular Mexican restaurant that began in Minnesota nearly 50 years ago, will return in 2025 with an updated look.

Michael McDermott, son of Chi Chi’s founder Marno McDermott, has struck a deal with Minnesota-based Hormel, which owns the Chi-Chi’s trademarks, to use the name on physical restaurant locations. Although the last restaurant closed in 2004, the brand lives on in the supermarket aisle with packaged seasonings, salsas, chips and tortillas.

“I still have fond memories of growing up in the Chi-Chi’s restaurants that my father built throughout their time, instilling in me the passion and determination to pursue my own career in the restaurant industry,” said Michael McDermott, whose Twin Cities-area restaurants include Rojo Mexican Grill, Tavern 23 and Kona Grill.

“We’re happy to play a part in helping bring that back to the consumer, to the restaurant patron,” Hormel Foods CEO Jim Snee said in an interview Wednesday. “We know that it has been one of people’s favorite restaurant chains from the past, and I do think it’ll be a lot of fun to see it again.”

Austin-based Hormel still sells plenty of Chi-Chi’s salsa and has no plans to stop.

“It is still an important brand for our portfolio,” Snee said. “This is another way to support the brand and marketing; it’s really good for us as well.”

Chi-Chi’s isn’t the only Twin Cities’ retro chain revival. Earlier this year, Steak and Ale opened in Burnsville as diners seek both comfort and value. Chi-Chi’s was a popular gathering spot known for its endless baskets of chips and salsa, supersized margaritas, Tex-Mex dishes and birthday celebrations that involved sombreros. News of its return was met with enthusiasm and walks down memory lane.

“We are excited to see the immense outpour of support from fans new and old surrounding the news of Chi-Chi’s return,” McDermott said. “While we are currently in the early stages of planning by securing funding, we can say the first two stores will be opened in Minnesota in 2025. Our goal is to explore the original development path Chi Chi’s took, through both company and franchised opportunities within the Midwest and East Coast.”

McDermott also said Chi-Chi’s 2.0 will “bring the brand back in a way that resonates with today’s consumer,” which means an updated dining experience while keeping the familiar taste and Mexican flavors.

Restaurateur Marno McDermott and former Green Bay Packers player Max McGee opened the first Chi-Chi’s in Richfield in 1975. The chain’s popularity grew quickly, peaking at more the 200 locations nationwide.

After a series of ownership changes in the 1980s and 1990s, the chain started to struggle, filing for Chapter 11 bankruptcy in 2003. Shortly after, an outbreak of hepatitis A in the Pittsburgh area was linked to green onions served at a local Chi-Chi’s, resulting in four deaths and more than 650 illnesses. The remaining restaurant locations closed in 2004.

Minnesota Star Tribune reporter Brooks Johnson contributed to this report.