Michael McDermott, the son of one of the founders, is spearheading the dramatic return of the once-popular Mexican restaurant chain Chi-Chi’s in 2025, nearly two decades after its last doors closed. He aims to infuse new life into the brand his father started.
In a significant move, Hormel Foods has granted Michael McDermott the right to revive the Chi-Chi brand, aiming for a 2025 relaunch with updated dining experiences and traditional flavors, WLKY reported.
Founded in 1975, Marno McDermott and Green Bay Packers legend Max McGee created Chi-Chi’s as a vibrant addition to the American restaurant landscape. Rooted in Minnesota, the business quickly flourished, expanding to over 200 locations by the early 2000s.
However, Chi-Chi's suffered an unforeseen setback when a hepatitis A outbreak linked to green onions from a Pittsburgh-area restaurant caused about 650 reported infections and four tragic deaths. This incident, which became the largest hepatitis A outbreak in U.S. history, triggered numerous lawsuits and led to the chain’s closure in 2004.
After the closure, Outback Steakhouse acquired the brand's assets, including the restaurant locations, in a deal valued at $40 million. Outback Steakhouse then repurposed these locations to fit concepts like Bonefish Grill and others under its umbrella.
While the physical restaurants vanished, Chi-Chi’s remained a household name through its range of store-bought branded products, including salsas and margaritas, managed by Hormel Foods since the late '80s. This enduring presence helped the brand maintain a connection with its customer base over the years.
Michael McDermott, Marno McDermott’s son, steps in with robust industry experience. His resume includes founding Kona Grill, a widely recognized restaurant brand he successfully managed before selling in 2019. McDermott now plans to leverage this expertise to rejuvenate Chi-Chi's, blending contemporary dining trends with the classic Mexican zest the chain was known for.
“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,” said Michael McDermott, highlighting his vision for the chain’s future.
Details about the specific locations, menu, and overall design of the rejuvenated Chi-Chi’s are still under wraps. The anticipation builds as patrons and former fans await more information on how the chain will adapt to modern culinary expectations while retaining its signature offerings.
This revival represents not only a return but a transformation aimed at capturing both nostalgia and novelty. The vision is to marry the comforting traditional flavors long associated with Chi-Chi’s with a dining environment that meets the contemporary expectations of diners.
The reintroduction of Chi-Chi’s into the competitive restaurant market reflects a broader trend of revisiting and revitalizing brands that hold sentimental value while updating their offerings to align with current tastes and dining trends.
The landscape of American dining has seen numerous revivals, but few involve a brand rebounding from a setback as significant as that faced by Chi-Chi’s. The decision of Hormel Foods to back Michael McDermott’s vision signifies confidence in the potential for a successful re-establishment.
With industry veterans like Michael McDermott at the helm, the relaunch of Chi-Chi’s might provide valuable insights into the dynamics of brand resilience and innovation in the food service industry. As 2025 approaches, all eyes will be on this historic brand as it prepares to salsa its way back into America’s culinary heart.
