Popular Mexican restaurant chain making a comeback 20 years later — thanks to founder’s son

Chi-Chi’s is returning after closing 20 years ago.

The Mexican chain once had more than 200 locations before the last restaurant’s doors shut in 2004.

Now, the founder’s son is spearheading the comeback with a plan to reopen Chi-Chi’s locations in 2025.

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Michael McDermott, son of Chi-Chi’s founder Marno McDermott who opened the restaurant in 1975 with former Green Bay Packers player Max McGee, signed an agreement with Hormel Foods, owner of Chi-Chi’s trademarks, allowing him to open and update the restaurant with its name, according to a press release.

McDermott, like his father, built a career in the restaurant industry and is behind the brands Kona Grill and Rojo Mexican Grill.

McDermott plans to honor his father’s legacy by bringing back the Chi-Chi’s restaurant experience that everyone knew and loved — with a modern twist.

“I still have fond memories of growing up in the Chi-Chi’s restaurants that my father built throughout their time, instilling in me the passion and determination to pursue my own career in the restaurant industry,” he said in a statement.

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“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 – an updated dining experience with the same great taste and Mexican flavor.”

Chi-Chi’s struggled with a series of ownership changes, and filed for Chapter 11 bankruptcy in Oct. 2003, according to Restaurant Business Magazine.

Later that month, a hepatitis A outbreak at a Pennsylvania location was traced to the green onions at Chi-Chi’s. It eventually became the largest hepatitis A outbreak in U.S. history, sickening 660 people, resulting in four deaths and leading to more than 300 victims that sued for damages.

In 2004, the chain closed its remaining 74 restaurants, which were acquired by Outback Steakhouse in a $42.5 million deal and converted to their brands, including Outback Steakhouse, Carrabba’s Italian Grill and Bonefish Grill.

Though the chain closed, the brand was still alive internationally and in grocery stores under Hormel Foods, packaged salsas, tortilla chips and other supermarket products — which will still be available when the restaurants reopen.

The first two Chi-Chi’s locations set to open in its comeback will be in Minnesota, where the chain restaurant first got its start nearly 50 years ago.