Chi-Chi’s is making a comeback 20 years after its last restaurant closed
CNN
Chi-Chi’s, the Mexican restaurant chain that closed 20 years ago, is staging a comeback.
Chi-Chi’s, the Mexican restaurant chain that closed 20 years ago, is staging a comeback. 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. Chi-Chi’s, started in Minnesota in 1975 by Marno McDermott and Green Bay Packers player Max McGee, would eventually expand to more than 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. Outback Steakhouse bought Chi-Chi’s in a $40 million deal and closed the remaining restaurants. The former rival used the locations to open Outback, Bonefish Grill and other concepts that its parent company owns. 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.
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