For millions of diners, the name Chi-Chi’s is synonymous with a specific era of family celebration, defined by endless baskets of warm chips, sizzling fajitas, and the legendary deep-fried ice cream. Founded in 1975, the chain became a “home away from home” for families across the Midwest and East Coast, peaking at over 200 locations. However, the brand famously vanished from the American landscape in 2004 following a devastating combination of bankruptcy and a high-profile health crisis. While the restaurants disappeared, the brand’s soul lived on through retail salsas and a singular location in Vienna, Austria, which served as the last flickering candle of a once-mighty Tex-Mex empire.
The long-awaited resurrection began in late 2024 when Michael McDermott, son of the original co-founder Marno McDermott, struck a deal with Hormel Foods to revive the restaurant brand. This comeback reached a major milestone on October 6, 2025, with the grand opening of a new flagship location in St. Louis Park, Minnesota. This 2.0 version of Chi-Chi’s is designed to be a “reimagined tradition,” blending the nostalgic favorites fans crave—like the Original Chimichanga—with modern culinary trends such as quesabirria tacos. The goal is to capture the essence of the “Salsabration” era while appealing to a contemporary consumer who values fresh, authentic ingredients over the processed shortcuts of the past.
The revival is as much about community and emotional connection as it is about food. McDermott’s vision for the brand focuses on reclaiming the restaurant’s role as a neighborhood hub where “first dates happened forty years ago.” To fund this expansion, the company launched a successful equity crowdfunding campaign, allowing thousands of loyal fans to literally “own a piece” of the brand’s history. The updated spaces are designed to be brighter and more inviting, moving away from the dark, heavy decor of the 1980s in favor of a modern aesthetic that respects its heritage without feeling like a museum.
As Chi-Chi’s looks toward 2026 and beyond, the plan is to follow the chain’s original growth path through the Midwest and East Coast via both company-owned and franchised locations. The success of the Minnesota flagship has proven that nostalgia remains a powerful market force, especially when backed by a commitment to quality and transparency. For many, this return is more than just a business relaunch; it is the restoration of a cultural landmark that proves some traditions are simply too beloved to stay buried. With a fresh generation now taking its seat at the table, the spirit of the “celebration of food” is officially back on the menu.
