The last Chi-Chi's Mexican restaurant closed back in 2004. Now, 20 years later the franchise may be coming back.

Did you know that Chi-Chi's was founded in Minnesota? It started in 1976 with former Green Bay Packers player Max McGee partnering with Marno McDermott. The franchise expanded to over 200 locations across the country before its downfall in 2004.

Why did Chi-Chi's close all its restaurants?

There were several reasons Chi-Chi's went out of business. They filed for bankruptcy in 2003, but a Hepatitis outbreak in a Pittsburg location dealt the final blow. 650 people were sickened by green onions in their salsa. It brought several hundred lawsuits and 4 people died.

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What happened to the Chi-Chi's locations?

According to CNN, Chi-Chi's was purchased by Outback Steakhouse. They closed the restaurants and used the locations for Outback Steakhouses, Bonefish Grills, and other restaurants.

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Chi-Chi's Brand Owned By Hormel

Hormel Foods owns Chi-Chi's trademark. That's why you've still been seeing their salsa and chips in grocery stores. They've agreed to let the son of one of the original founders use the trademark and reopen restaurants in 2025.

Chi-Chi's Making A Comeback?

Marno McDermott's son, Michael is reviving the chain. He has industry experience and once launched Kona Grill. He believes that the chain can be successful with an updated dining experience.

You Can Bet Locations Will Be Coming To the Midwest

I'd put money on the fact that Chi-Chi's will be returning to Minnesota. That's where the chain started and found most of its success. If part of bringing Chi-Chi's back is nostalgia, they have to go back to those original locations. They haven't released any locations or menu items at this time.

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Gallery Credit: Madison Troyer

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