Chi-Chi's Mexican restaurant chain plans 2025 comeback after 20-year hiatus, seeking to revive the nostalgic brand under new ownership.
Hormel Foods, current owner of the Chi-Chi’s trademark, announced Tuesday it’s letting Michael McDermott, son of the chain’s co-founder, use the fabled name to reopen restaurants in 2025. Specific locations, menu items and designs weren’t immediately released.
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.
Michael McDermott will revive Chi-Chi’s, which was known for its eclectic interior as well as an expansive Tex-Mex menu that served everything from fajitas to fried ice cream. He is an industry veteran who launched Kona Grill and sold it to trendy steakhouse STK’s parent company in 2019. The Chi-Chi’s branding, which is still used on packaged food and margaritas, will continue to be sold at stores. Hormel has made chips, salsas and other Chi-Chi’s products since the late 1980s.
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