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Michael McDermott, the son of Chi-Chi’s founder, said he struck
an agreement with Hormel Foods to open the restaurants. Austin,
Minnesota-based Hormel owns the Chi-Chi’s trademark and produces
Chi-Chi’s-branded chips and salsas.
"The Chi-Chi's brand is one of the most beloved, respected, and
well-known names in the Mexican food category," Hormel said
Thursday in a statement. “The legacy and spirit of the brand
remain strong, and we’re excited about the upcoming relaunch of
Chi-Chi's restaurant locations.”
McDermott, a restauranteur who also founded Kona Grill and Rojo
Mexican Grill, didn’t say how many locations he planned to open
or where. McDermott said the restaurants would be an updated
version of the classic Chi-Chi's.
“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,” McDermott said in a statement.
Chi-Chi’s was founded in 1975 by Marno McDermott and former
Green Bay Packers player Max McGee. It grew rapidly in the
1990s, reaching more than 200 locations nationwide. But by 2003
it had filed for bankruptcy after going through a series of
ownership changes and struggling with increasing competition.
Around the time of its bankruptcy filing, Chi-Chi’s reputation
was also married by a hepatitis A outbreak at one of its
restaurants in Pennsylvania. The outbreak, linked to the green
onions it used as a garnish and in its salsas, killed four
people and sickened 660.
The last Chi-Chi’s closed its doors in 2004.
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