A once-popular restaurant chain will be opening locations in 2025 for the first time in two decades.
Chi-Chi’s is planning to make a comeback by opening two restaurants in Minnesota after closing its last location in 2004.
Chi-Chi’s operated more than 200 restaurants nationwide before its unfortunate downfall in the early 2000s.
The restaurant openings were the result of an agreement with Hormel Foods, the owner of the Chi-Chi’s trademarks, according to a press release.
Michael McDermott, the son of Chi-Chi’s co-founder, will be using the signature name in accordance with the agreement.
McDermott is hoping to honor his family’s legacy by preserving Chi-Chi’s classic experience while incorporating modern influences, according to the press release.
‘While we are in the early stages of planning by securing funding, we can say the first two stores will be opened in Minnesota in 2025,’ McDermott said in a statement to USA Today.
‘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.’
Restaurateur Marno McDermott believed there was demand for a full-service Mexican restaurant and requested help from former Green Bay Packers player Max McGee.
Together, they founded Chi-Chi’s in 1975, and made around $2 million in first-year sales after opening the first restaurant in 1976, according to Reference for Business.
Chi-Chi’s had almost 50 locations by 1983 and 42 new ones opened in 1985 after its financial success.
The restaurant chain served classic Tex-Mex food during its original run, offering meal items such as tacos, burritos, and tamales.
‘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,’ McDermott said in a press 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: an updated dining experience with the same great taste and Mexican flavor.’
Despite its success, Chi-Chi’s began to suffer financial problems in the 1980s after its rapid location expansion.
Chi-Chi’s franchises also went through several management changes and by 2003 the restaurant chain filed for Chapter 11 bankruptcy.
It also had a series of ownership changes, which Chi-Chi’s claimed was the main reason why the restaurant chain was struggling.
Outback Steakhouse eventually purchased Chi-Chi’s in a $42.5 million deal and closed the remaining 76 restaurants.
A few Chi-Chi’s restaurants in Europe survived the financial setbacks but they are now permanently closed.
Already in major debt, Chi-Chi’s was the subject of a storm of negative publicity when a Hepatitis A outbreak was traced to green onions in the salsa from one of its Pennsylvania locations.
The outbreak left around 650 customers sick, resulting in four deaths and hundreds of lawsuits.
It was the largest hepatitis A outbreak in the US, and it led to food safety changes still implemented today, according to CNN.
The Chi-Chi’s brand did not disappear completely after the restaurant chain’s permanent closures.
Hormel Foods sells packaged salsas, tortilla chips and other supermarket products under the trademark name.
The company has not announced what will be on the menu when the restaurants reopen.
Daily Mail has reached out to Hormel Foods for comment regarding the reopening of Chi Chi’s restaurants.