For anyone who remembers the American dining scene of the 80s and 90s, the name Chi-Chi's might spark a memory of sizzling fajitas, festive décor, and that legendary deep-fried ice cream.
After vanishing for two decades, the iconic Tex-Mex restaurant is making a spectacular comeback. Its first new location is set to open in St Louis Park, Minnesota, on 6 October 2025, promising a revival led by the son of its original co-founder. The new Chi-Chi's aims to serve a potent cocktail of cherished nostalgia and fresh, modern flavour.
A Brand from the Past
Chi-Chi's Mexican Restaurant was founded in 1975 by Marno McDermott and former Green Bay Packers player Max McGee. The chain rapidly became one of the most recognisable Tex-Mex destinations across the United States during the 1980s and 1990s, known for its lively atmosphere and signature dishes like chimichangas, enchiladas, and its famous deep-fried ice cream.
However, the brand's fortunes faltered dramatically in the early 2000s. In 2003, a devastating hepatitis A outbreak, traced to contaminated green onions at a Pennsylvania branch, led to hundreds of illnesses and several deaths, as reported by Food Processing. This public health crisis, combined with existing financial struggles, proved insurmountable.
The company filed for bankruptcy, and by the following year, all its American restaurants were shuttered. Despite the end of its restaurants, the Chi-Chi's name lived on through a line of salsas, chips, and other products distributed by Hormel Foods.
The Chi Chi Mexican Restaurant Comeback Story
The 2025 revival is being driven by Chi-Chi's Restaurants LLC, a new entity led by Michael McDermott. After securing the rights to the name from Hormel Foods, McDermott launched a crowdfunding campaign on StartEngine to revive the brand, raising approximately $2.4 million (£1.7 million) of a $3.5 million (£2.5 million) target.
The first new Chi-Chi's Mexican Restaurant will open at 1602 West End Boulevard in St Louis Park. This flagship location will serve as a model for future branches, with plans for expansion across Minnesota and other parts of the Midwest. According to McDermott, the goal is to restore the Chi-Chi's legacy while appealing to today's diners with quality ingredients and updated recipes.
'We're bringing back the food, energy, and fun that people love, now with a fresh twist for a whole new generation', he said.
Chi Chi Mexican Restaurant New Menu
According to the company's 'sneak peek' via PR Newswire, the relaunch menu will include classic favourites such as the Original Chimichanga (with beef, chicken, short rib or red chilli) and Seafood Enchiladas smothered in lobster cream sauce. Reports also suggest that other beloved classics, like the towering Nachos Grande and the hearty El Burro Con Queso, are set to return.
New additions have been introduced to appeal to contemporary tastes, such as Quesabirria Tacos filled with slow-cooked beef and Oaxaca cheese, and a Manchego Burger topped with avocado and chipotle mayonnaise. The restaurant will also feature an enhanced bar section serving cocktails and traditional Mexican beverages.
Prices Then and Now
Chi-Chi's Mexican Restaurant is expected to maintain accessible pricing in line with its casual dining heritage. While full menu prices have not been released, early reports suggest items such as its signature fried ice cream are priced around $7 (£5), reflecting a mid-range cost comparable to other family-style Mexican restaurants.
In the 1990s, many favourites were generally priced below $10 (£7). The current adjustments likely mirror broader inflation and the rising cost of ingredients over the past two decades.
