No more bye-bye for Chi-Chi's: Restaurant chain reopening after 20-year hiatus



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Chi-Chi’s is not yet ready to say ta-ta — the chain is poised to reopen some of its restaurants after shutting its doors in the U.S. two decades ago.

Michael McDermott, the son of one of Chi-Chi’s co-founders, will be allowed to use the name on the Tex-Mex restaurants, according to a deal announced this week. 

Hormel Foods owns the Chi-Chi’s trademarks. 

No details were provided on the number or locations of the restaurants, which are expected to open next year. 

“I still have fond memories of growing up in the Chi-Chi’s restaurants that my father built throughout their time,” McDermott said in a statement about the revitalized restaurant brand.

“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,” he said in a news release.

The first Chi-Chi’s opened its doors in Minnesota in 1976. The chain grew to more than 200 restaurants nationwide, before its owner filed for bankruptcy in 2003.

After facing the largest hepatitis A outbreak in the country’s history traced to green onions in its salsa, the last of the Chi-Chi’s restaurants closed in 2004. 



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