Chi-Chi's Mexican Restaurant Is Back From the Dead After 20 Years

Do you have fond memories of chowing down on crunchy tacos and endless chips and salsa at Chi-Chi’s? It was a beloved part of American life in the 1980s and 1990s, and while it still exists in Europe and as a grocery store brand, the chain has been closed for 20 years. 

But starting next year, you might be able to get all your girlfriends back together and head to Chi-Chi’s for some margaritas again. Here’s what we know.

It’s a family affair: Michael McDermott, the son of Chi-Chi’s founder, is reviving the restaurant. He struck a deal with Hormel Foods, the company that currently owns the Chi-Chi’s trademark in the U.S., that allows him to open restaurants under the name. (Fun fact: The chain is named after his grandmother, who went by the nickname Chi-Chi.)

“I still have fond memories of growing up in the Chi-Chi’s restaurants that my father built,”  McDermott said in a news release. “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.” 

Unfortunately, we don’t know that yet, nor do we know how many locations McDermott plans to open. We do know that he plans to open some in 2025, so we shouldn’t have to wait too long for fried ice cream and chimichangas. Previously, the chain’s first location was opened in the Minneapolis area, so it might be a good guess that at least one will open in the Midwest again next year. 

We’re not sure, but considering it’s such a beloved and nostalgia-fueled brand, we’re guessing that many items and recipes will remain the same, like sweet corn cakes and taco salad. The only clue we have about the new Chi-Chi’s menu is that it will have “an updated dining experience with the same great taste and Mexican flavor." 

Not really. Back in the late 1980s, Hormel purchased the rights to sell Chi-Chi’s brand grocery items in supermarkets. Now it’s owned jointly by Hormel and MegaMex Foods. They sell Chi-Chi’s branded salsa, taco seasonings, tortilla chips, and other Tex-Mex foods, but the new restaurants will only have a name in common with that company. 

Chi-Chi’s had over 200 locations across the country at one point, but in 2003 it filed for bankruptcy. Not long after, a hepatitis A outbreak was linked to green onions served at a Chi-Chi’s in Pennsylvania. It turned into the largest hepatitis A outbreak in U.S. history, with 660 people sickened and four deaths. Between lawsuits stemming from that situation and bankruptcy, the chain closed its remaining 65 locations in 2004.  

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