Popular Mexican restaurant chain to reopen 20 years after bankruptcy

CINCINNATI (WKRC) – A Mexican restaurant chain that once boasted 200 locations across America will soon reopen 20 years after bankruptcy.

The final Chi-Chi’s Mexican Restaurant in the United States closed in 2004 after decades of the brand changing ownership. The company was already approaching bankruptcy when a hepatitis A outbreak in Pittsburgh was traced to a nearby Chi-Chi’s green onion supply, cementing the chain’s demise.

The brand’s trademark was then purchased by Outback Steakhouse for just over $40 million. A few locations continued to operate in Germany and Belgium until 2022, and another location operated in Vienna until 2024 (Google now says the location is permanently closed).

The brand also survived through prepackaged foods at grocery stores, like salsa and tortillas, which are still available.

The Hormel Foods Corporation announced on Dec. 3 that it had reached an agreement with Michael McDermott, the son of Chi-Chi’s founder Marno McDermott, that would allow him to use the Chi-Chi’s trademark on a series of new restaurants that are set to open in 2025, according to a press release.

“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,” said McDermott, who founded Kona Grill and Rojo Mexican Grill.

“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.”

The newly founded Chi-Chi’s Restaurants LLC did not announce where the new locations would open, nor exactly when.