Chi-Chi’s, the once-celebrated Mexican restaurant chain, is confirming its return. After more than 20 years since bankruptcy and closing its U.S. locations, the brand is reopening its first new store — and rolling out a fresh menu that mixes the old with the new.
What led to Chi-Chi’s downfall and why revival now?
You might remember the name from its heyday. Chi-Chi’s grew rapidly in the 1980s and 1990s, but in October 2003 a major hepatitis A outbreak linked to green onions at one of its locations severely damaged its reputation. Over 650 people got sick, and four died. The legal, financial, and public relations fallout pushed the chain into bankruptcy. Its last U.S. location closed in 2004.
Fast forward to December 2024: Hormel Foods, which owned the Chi-Chi’s trademark via its salsa and chips business, made a deal to let Michael McDermott (son of co-founder Marno McDermott) use the name to relaunch the restaurant business. In mid-2025, the brand announced plans to reenter the restaurant world — and now the first new store is about to open.
This revival rests on nostalgia, a belief there’s room again for bold, fun Tex-Mex dining, and the hope that the brand can blend its original charm with modern expectations.
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Where will the first Chi-Chi’s reopening be?
The first Chi-Chi’s restaurant to open in the U.S. after the brand’s long silence will be in St. Louis Park, Minnesota. It is being styled as the flagship for the relaunch. That location is expected to open on October 6, 2025.
Chi-Chi’s says the new space will have a “refreshed design,” comfortable seating, and an improved bar experience. It will be more modern, but they want you to still feel the energy and fun that made Chi-Chi’s memorable.
While no full map of new locations has been confirmed yet, this first store is a test — to see how people respond, and to set the tone for further growth.
What will be on the new menu?
One thing people are most curious about is this – Will the old favorites return? The answer is yes — many will. At the same time, the menu is getting a makeover.
Here are some highlights you can expect:
- Original favorites: The classic Chimichanga, Nachos Grande, and other staples will be back.
- New items: Quesabirria Tacos, Seafood Enchiladas, a Manchego Burger, El Burro Con Queso, and more.
- Signature desserts returning: Fried ice cream and corn cake are making a comeback.
- Elevated experience: The bar side will have more attention, and some dishes may feel more premium than before.
In the words of McDermott: “Chi-Chi’s is back stronger than ever. We’re bringing back the food, energy, and fun that people love, now with a fresh twist for a whole new generation.”
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What challenges and opportunities lie ahead?
Reviving a restaurant brand after decades is no easy feat. But there are reasons to believe Chi-Chi’s could do it. Let’s look at it in the opportunities and challenges angle.
Opportunities:
- Brand nostalgia—Many people have fond memories of the chain; that can attract attention and media buzz.
- Modern taste trends—More people today appreciate higher quality ingredients, craft cocktails, fresh flavors—Chi-Chi’s can lean into that.
- Crowdfunding and invested fans—The relaunch has involved public support and contributions. That helps build community before doors even open.
Challenges:
- Overcoming past reputation –The 2003 health scandal is still part of the brand’s story. Every aspect of food safety and operations must be bulletproof.
- Meeting modern expectations – Customers now expect fast digital ordering, delivery, strong social media presence, clean design, dietary options — Chi-Chi’s needs to deliver in all those areas.
- Scaling sensibly – The first store will be closely watched. If it succeeds, expansion must balance speed and quality.
Chi-Chi’s is stepping out of limbo and into a new chapter. Its first new store in more than 20 years will test whether the brand can return not just as a memory, but as a living, thriving restaurant again.
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