After more than two decades of being out of business, a beloved Minnesota-based Tex-Mex restaurant chain is set to make a comeback. Hormel Foods, the corporation that owns the Chi-Chi’s trademarks, has granted Michael McDermott, son of co-founder Marno McDermott, permission to open new locations under the brand name starting in 2025.
Hormel Foods also produces packaged Chi-Chi’s foods, including salsas, tortillas, and seasonings. The move marks a revival for the chain that was once known for its widespread presence across the US, with over 200 locations at its peak.
However, increased competition and ownership changes led to financial difficulties, ultimately resulting in Chi-Chi’s filing for bankruptcy in the early 2000s. A hepatitis A outbreak in 2003 further damaged the brand’s reputation, infecting over 650 people and claiming four lives.
In 2004, Outback Steakhouse acquired Chi-Chi’s for $40 million and closed all remaining locations to expand its own chain of restaurants, including Outback, Bonefish Grill, and others.
Source: https://www.al.com/news/2024/12/20-years-after-closing-its-last-location-this-restaurant-chain-is-set-to-return.html