After closing its last location more than two decades ago, the iconic restaurant brand Chi-Chi's is set for its return in 2025.
Michael McDermott, the son of the restaurant's co-founder Marno McDermott, said he plans to reopen multiple locations, some 21 years after the chain closed its final restaurant. McDermott worked with Hormel Foods to get the rights to the Chi-Chi's trademark. Hormel Foods has continued making salsa under the Chi-Chi's brand name since the chain's 2004 closure.
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McDermott did not say where the first location would open. He did say that he would blend the traditional Chi-Chi's experience with modern influences.
"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, founder of Chi-Chi's Restaurants, LLC, the new company formed to revive Chi-Chi's. "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."
At one point, Chi-Chi's had over 200 locations throughout the U.S. There were several locations that existed outside of the U.S. after 2004, but according to online reviews, the last remaining Chi-Chi's in Vienna, Austria, closed earlier this year. Chi-Chi's was a thriving restaurant brand in the 80s and 90s, but struggled with bad press after a hepatitis A outbreak was associated with the chain.
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According to a 2003 CBS News report, an outbreak of hepatitis A associated with green onions served in the restaurant's salsa killed three patrons and sickened 600 others. In the wake of the outbreak, Chi-Chi's faced numerous lawsuits and also filed for bankruptcy.
