The Once-Popular Mexican Food Chain That's Making A Comeback In 2025

Chi-Chi's is back. The popular former restaurant chain is no longer just a nostalgic 1990s memory. While the chain originally enjoyed a festive atmosphere for adding a little salsa to your life, it was ultimately closed due to bankruptcies and a deadly outbreak of Hepatitis A from contaminated green onions. Now, after twenty years of U.S. closure, a new Chi-Chi's has officially opened in St. Louis Park, Minnesota.

Minnesota is actually the original home state of Chi-Chi's, a Tex-Mex meets Mexican food chain started by Marno McDermott and Green Bay Packers player Max McGee in 1975. "Chi-Chi" was McDermott's nickname for his wife. The reopening is also a family affair, as McDermott's son, Michael McDermott, is now in charge of bringing salsa glory back to Chi-Chi's with its new Midwestern era. If that name sounds familiar it's because Michael McDermott is the founder of both Kona Grill and Rojo Mexican Grill. While many restaurant chains have been struggling since 2024, and the cost of dining out continues to grows increasingly expensive, McDermott hopes to apply his restaurant expertise to creating a value-driven, and occasion-friendly, new Chi-Chi's for modern diners.

When a chain store or restaurant is almost lost to the sands of time, chances are good that big money is needed to bring that investment back to life. Toys R Us toys still exist even afterToys R Us went bankrupt because someone else bought the brand name. In fact, the brand name "Chi-Chi's" is still likely recognizable to shoppers, even after decades, because the brand never actually fully went away. Hormel actually purchased the rights to the Chi-Chi's brand name back in 1987. Despite all U.S. Chi-Chi's stores closing by 2004 (and one European location in Vienna hanging on until 2024), Hormel has continued to stock Chi-Chi's branded salsas and other products on grocery store shelves, thereby keeping the brand alive. Hormel even granted McDermott permission to use the brand name on his new restaurant chain revival attempt.

McDermott is counting on nostalgia for the Chi-Chi's brand, and name recognition, to help revive the restaurant chain. McDermott has partnered with equity crowdfunding site, StartEngine, to bring investors in to the Chi-Chi's comeback story, and plans to open new Chi-Chi's locations in two of his own remodeled former Rojo Mexican Grill locations. McDermott's StartEngine account beckons investors to "own a piece of Chi-Chi's legendary comeback." This crowdfunding effort has already drummed up $2.6 million, of the first major $3.5 million fundraising goal, as of early October 2025. Investors can own a piece of Chi-Chi's for a minimum investment of $249.48, by purchasing a minimum of 80,000 shares of stock for $1.54 per share.

Whether McDermott crowdfunds Chi-Chi's back to a national restaurant chain remains to be seen. However, the store's flagship St. Louis Park location, and planned Maple Grove location, will both feature fresh tortillas made daily. The emphasis for the chain is on scratch-made food, with some of the original 1976 recipes, as well as more modern birria options. 

New Chi-Chi's locations will feature open kitchens, meaning diners can actually see their fajitas grilling before their eyes. A strong bar concept seems to also be at play with the revival, and an astonishing 100 different tequilas are on the menu. McDermott's dream seems to be to beat out chains like Uncle Julio's, Chuy's, and On the Border at their own game. However, is it a game that anyone is still playing?

Restaurant costs continue to increase while owners blame paying higher wages and even how tariffs might affect dining out for higher menu prices. Plus, grocery and ingredient prices keep steadily climbing. While many may want a fun dinner or happy hour out at a Chi-Chi's style restaurant, given how tight the clinch is on discretionary spending for many Americans, it may be a financial stretch they simply can't afford. With that said, most plates on the new Chi-Chi's menu are priced in the $15 to $24 range, with desserts ranging from $7 to $10. Ultimately, time will tell if Chi-Chi's launches a successful comeback -– or simply enjoys a more final goodbye.