Once a staple of the U.S. Mexican dining scene, Chi-Chi’s is poised for a revival after more than two decades off the map. The chain, known for its festive décor, bold flavors, and community presence — including in Michigan — is returning under new leadership. Let’s dive into what’s happening and what fans can look forward to.
A Bit of Background
Chi-Chi’s was founded in the mid-1970s by Marno McDermott (with help from former NFL player Max McGee). In its peak, the chain expanded to hundreds of locations across the U.S., including several in Michigan.
However, financial troubles, ownership changes, and a serious food safety crisis led to its decline. By 2004, all its U.S. restaurants had closed.
A major trigger was a 2003 hepatitis A outbreak traced to contaminated green onions served in one location. Over 600 people got sick and a few died. That incident is still considered one of the largest hepatitis A outbreaks tied to a restaurant in U.S. history.
After the closures, the brand lived on in grocery stores: salsa, tortilla chips, and other Chi-Chi’s products continued under Hormel Foods’ ownership.
The Revival Plan
In late 2024, it was announced that Michael McDermott, son of Chi-Chi’s original founder, reached an agreement with Hormel Foods to revive the restaurant chain. Under a new company, Chi-Chi’s Restaurants, LLC, he intends to reopen brick-and-mortar locations starting in 2025.
He’s already converting two of his existing restaurants (formerly under a different Mexican brand) into the new Chi-Chi’s prototype locations. These will help set the tone for the brand revival.
What This Means for Michigan
The Yahoo article points out that Chi-Chi’s was once popular in Michigan and asks whether it will return. The truth is: the revival plan includes the possibility of reopening in Michigan — but nothing is confirmed yet.
While the first new location is expected in Minnesota, the company hasn’t ruled out expansion into former strongholds like Michigan. Michigan residents who remember Chi-Chi’s fondly should keep an eye on announcements as the brand expands.
What to Expect from the New Chi-Chi’s
From what’s been revealed so far, the relaunch aims to strike a balance between nostalgia and modern appeal. Here’s what may be on the menu and in the experience:
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Original favorites will return: things like chimichangas, seafood enchiladas, and signature enchilada sauces.
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Updated offerings: newer items that suit today’s tastes, perhaps lighter options or modern twists on classic flavors.
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Upgraded design & bar experience: modern interiors, better seating, and a more polished ambiance.
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Strong emphasis on food safety: learning from past mistakes, the new management will likely place extra focus on supply chains, ingredient quality, and kitchen protocols.
The first reopened Chi-Chi’s will likely serve as a flagship model. Later expansions may follow in states where it used to have a presence, including Michigan.
Challenges & Considerations
Bringing back a beloved brand is never easy. Here are some key challenges the revival will face:
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Public trust – The legacy of the hepatitis A outbreak still looms. Convincing customers that the new Chi-Chi’s is safe and responsible will be crucial.
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Competition – The U.S. Mexican and Tex-Mex restaurant space is crowded. Chi-Chi’s will have to stand out with taste, ambiance, or niche offerings.
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Consistency – Keeping quality, service, and brand identity consistent across new locations as it scales.
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Market fit – Tastes and dining habits have shifted since the early 2000s. The new concept must feel relevant to modern audiences.
Still, the nostalgia factor and brand recognition give Chi-Chi’s a head start many new restaurants don’t have.
Why This Revival Matters
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For fans: It’s a chance to relive a classic dining experience many remember from their childhood or college years.
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For regional food culture: Bringing back a chain with Midwest roots (including Michigan) ties into community identity and shared food memories.
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For the brand: Chi-Chi’s can leverage its grocery product presence to support restaurant visibility and marketing synergy.
If the revival succeeds, it could be one of the most memorable restaurant comebacks in recent U.S. food history.
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