Chi-Chi's
Chi-Chi's
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2006854

Chi-Chi's

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2006854

Chi-Chi's

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Chi-Chi's

Chi-Chi's is a brand of Mexican food grocery products produced and marketed in North America since the original North American restaurant chain owner sold the rights to use its name on said products in 1987. The name was also used by two defunct restaurant chains, the original American chain that operated from 1976 until the company was liquidated in 2004, and a former European franchise whose last location closed, in Austria, in 2024. A revived American chain opened their first restaurant in Minnesota in October 2025.

Chi-Chi's was a Mexican restaurant chain that was reduced to a single restaurant in Vienna, Austria, by 2022. The company was briefly owned by Tumbleweed, Inc.[failed verification] The chain also once operated in the United States and Canada but exited those countries in 2004, and closed their German and Belgian locations in 2022. The website for the Austrian restaurant was last active in August 2024 and became inactive by November 2024.

Chi-Chi's was founded by restaurateur Marno McDermott (his wife's nickname was "Chi Chi") and former Green Bay Packers player Max McGee. The first restaurant opened at 7717 Nicollet Avenue South, in Richfield, Minnesota (a suburb of Minneapolis) in early August 1976. McDermott had previously founded the Zapata fast-food Mexican chain, which later became Zantigo. From 1977 to 1986, the chain was run by former KFC executive Shelly Frank. When Frank took leadership, the chain moved its headquarters to his hometown of Louisville. By March 1995, the chain had grown to 210 locations.

In 2001, Chi-Chi's applied for a trademark on the word "salsafication" but was denied by the Trademark Trial and Appeal Board. The company's slogans were "A celebration of food" and, later, "Life always needs a little salsa."

Chi-Chi's last owner while the company was still in business in the United States and Canada was Prandium Inc., which had filed for bankruptcy several times, including in 1993 as Restaurant Enterprises Group Inc. and again in 2002 as Prandium. On October 8, 2003, Chi-Chi's and Koo Koo Roo, another Prandium subsidiary, filed for Chapter 11 bankruptcy themselves. The flagship Chi-Chi's restaurant in Richfield, Minnesota, was put up for sale in October 2003.

In November 2003, a month after filing for Chapter 11 bankruptcy, Chi-Chi's was hit with the largest hepatitis A outbreak in American history, with at least four deaths and 660 other victims of illness in the Pittsburgh area, including high school students who caught the disease from the original victims. The hepatitis was traced back to green onions at the Chi-Chi's at Beaver Valley Mall near Monaca, Pennsylvania, about 30 miles (48 km) northwest of Pittsburgh. Chi-Chi's settled the hepatitis A lawsuits by July 2004. At the time the suits were settled, Chi-Chi's had only 65 restaurants, fewer than half of the number of four years prior.

In August 2004, Outback Steakhouse bid $42.5 million for the rights to buy its choice of Chi-Chi's 76 properties, but did not purchase the Chi-Chi's name, operations, or recipes. On the weekend of September 18, 2004, Chi-Chi's closed all 65 of its remaining restaurants. Outback had hoped to convert many of the properties to its own restaurants, but instead eventually sold the majority of the properties to Kimco Realty Corporation, a real estate investment trust company in New Hyde Park, New York.

On December 3, 2024, it was announced that the restaurant chain would re-launch in the United States in 2025. Michael McDermott, son of original owner, Marno McDermott, would lead and operate the new restaurants as Chi-Chi's Restaurants, LLC. Hormel Foods, the current owner of the Chi-Chi's trademark, has allowed the use of the Chi-Chi's name for the physical restaurant locations. A few months later, McDermott announced that he would convert his two Rojo Mexican Grill restaurants in St. Louis Park and Maple Grove to the revived Chi-Chi’s brand. The first restaurant in the revived chain opened in St. Louis Park, Minnesota on October 6, 2025. The menu of the revived concept appears to be a mixture of favorites from the old restaurant's plus a few items from the Roja's menu. Although initial reviews seems mostly positive, it is too early to tell if the business would be economically viable. For others, reviews seems mixed.

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