Popular Mexican restaurant chain reopens 20 years after bankruptcy

Popular Mexican restaurant chain reopens 20 years after bankruptcy

CINCINNATI (WKRC) – A Mexican restaurant chain that once had 200 locations across America will soon reopen 20 years after filing for bankruptcy.

The last Chi-Chi’s Mexican restaurant in the United States closed in 2004 after the brand changed hands for decades. The company was already on the verge of bankruptcy when a hepatitis A outbreak in Pittsburgh was traced to a nearby Chi-Chi’s scallion supply, cementing the chain’s demise.

The brand’s trademark was then purchased by Outback Steakhouse for just over $40 million. Some locations in Germany and Belgium were operational until 2022, and another location in Vienna until 2024 (Google now says the location is permanently closed).

The brand also survived through prepackaged foods in grocery stores such as salsa and tortillas, which are still available.

Hormel Foods Corporation announced on December 3 that it had reached an agreement with Michael McDermott, the son of Chi-Chi founder Marno McDermott, that would allow him to use the Chi-Chi trademark for a number of new restaurants According to a press release, it is scheduled to open in 2025.

“I still have fond memories of growing up in the Chi-Chi’s restaurants that my father built over time, which instilled in me the passion and determination to pursue my own career in the restaurant industry.” said McDermott, who founded Kona Grill and Rojo Mexican Grill.

“We have seen the impact our restaurant has had on individuals and families across the country and believe there is a great opportunity to bring the brand back in a way that will resonate with today’s consumer – a modern dining experience with the same great taste and the same Mexican touch.”

The newly formed Chi-Chi’s Restaurants LLC did not announce the location or exact timing of the opening of the new locations.

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