Chi-Chi’s Restaurants Set to Make a Comeback in 2025 After Two Decades

After nearly 20 years, Chi-Chi’s—a beloved Mexican restaurant chain—is making a highly anticipated return to the U.S. dining scene in 2025. Originally founded in 1975, Chi-Chi’s gained popularity with its vibrant atmosphere, classic Tex-Mex dishes, and signature margaritas. At its peak, the chain operated over 200 locations nationwide.

A Legacy Reimagined: The revival is being led by Michael McDermott, son of co-founder Marno McDermott, who has secured rights from Hormel Foods to reopen Chi-Chi’s restaurants. The first locations are set to open in Minnesota, aiming to blend the iconic flavors and nostalgic charm of Chi-Chi’s with a modern dining experience.

Overcoming Past Challenges: The brand faced significant setbacks in the early 2000s, including a hepatitis A outbreak linked to contaminated green onions and financial struggles, which led to the closure of all U.S. locations by 2004. Despite these challenges, the Chi-Chi’s name endured through its line of grocery store products, such as salsas and tortilla chips, managed by MegaMex Foods.

What to Expect from the New Chi-Chi’s: The reimagined Chi-Chi’s promises to deliver familiar favorites while introducing updated menu options to cater to today’s diners. With an emphasis on quality, flavor, and a contemporary dining environment, the comeback is poised to reignite the love for this iconic Tex-Mex chain.