CHI-CHI'S Mexican restaurants set to return 20 years after bankruptcy
MINNEAPOLIS — The Minnesota-born Mexican restaurant chain CHI-CHI's is making a comeback 20 years after ending its "celebration of food."
CHI-CHI's announced on Wednesday that a new agreement has been reached with Minnesota's Hormel Foods, which has owned the restaurant's trademarks since 1987.
The deal gives Michael McDermott, the son of CHI-CHI's co-founder Marno McDermott, use of the restaurant name on physical locations set to open in 2025.
CHI-CHI's was founded in 1975 by Marno McDermott and former Green Bay Packer Max McGee, with its first location opening in Richfield in 1976. At one point, there were more than 200 locations across the nation.
Ownership changed hands several times over the next three decades, with the franchise's demise arriving in 2004 with the one-two punch of bankruptcy and a hepatitis A outbreak at one of its locations near Pittsburgh, which killed four people and sickened nearly 600 more.
The owners of Outback Steakhouse then spent millions to buy and convert dozens of its locations into its own family of restaurants.
Michael McDermott, who is also co-owner of the Kona Grill and Rojo Mexican Grill chains, says he has "fond memories" of the franchise his father helped build.
"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," Michael McDermott said.
There's no word yet on where the locations will be, or if it will indeed return to its home state of Minnesota.
