Chi-Chi’s Restaurant Chain to Return in 2025 After Closing Down 20 Years Ago

A Minnesota-based Mexican restaurant chain is preparing to reopen some locations in 2025 after it shut down 20 years ago.

Chi-Chi’s trademark owner, Hormel Foods, said Tuesday it will allow the son of the chain’s co-founder to use the name for the openings, CNN reported Wednesday.

Co-founder Marno McDermott and Green Bay Packers player Max McGee opened Chi-Chi’s in 1975, and the chain grew to 200 locations:

However, the chain closed in 2004 following a hepatitis A outbreak at a Pittsburgh-area location traced to green onions served in its complimentary salsa, sickening about 650 people and resulting in four deaths and several hundred lawsuits. It’s the largest hepatitis A outbreak in United States history and led to nationwide food safety changes.

McDermott’s son, Michael, said, “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,” per Local 12.

The outlet noted the brand still sells items such as salsa and tortillas in some grocery stores. It remains unclear how many locations will be opened for business or where they will open, according to the Hill.

A Chi-Chi’s commercial from 1991 shows people enjoying the restaurant’s Sonoran Sampler which at the time had a price tag of $7.99 and included fried ice cream for dessert:

The commercial noted its all-you-can-eat lunch buffet was $5.99.

The news comes as some restaurant chains have faced strong earnings while others faced bankruptcy, the CNN report noted.

R.J. Hottovy, who is the head of analytical research at Placer.ai, said, “While restaurants continue to face challenges like rising food costs, labor shortages, and higher buildout expenses, nostalgia has emerged as a powerful driver of customer visits.”

“Strategies like reintroducing beloved menu items or offering exclusive collector’s items have resonated with consumers, suggesting these tactics could also work well for reviving these classic brands,” Hottovy added.