• by Tanya Gazdik , December 15, 2024

It turns out that what goes around comes around applies to restaurants as well as fashion. 

Hormel Foods, owner of the Chi-Chi's trademark, recently announced plans to reopen the once-sought-after chain, with more specific details to come soon.

“As Michael McDermott, the man tasked with the revival, stated in a press release, ‘[We] 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,’” according to delish.com. “And people across the country are already licking their lips in excitement at the prospect of the return of Chi-Chi's. In fact, a Reddit thread dedicated specifically to the comeback news has many former fans chomping at the bit. ‘Thank you sweet baby Jesus!’ exclaimed one poster, while another lauded the restaurant's beloved dessert: ‘I want the fried ice cream. NOBODY else does it right.’”

McDermott said in a statement on Friday that the new business venture was “in the early stages of planning by securing funding” but shared that the first two restaurants to open will be in Minnesota, according the The New York Times. He did not clarify where in Minnesota the sites would be or how many restaurants might ultimately be opened under the revival.

So what prompted the downfall of the popular brand, other than the demise of the shopping mall? 

Ranked number eight on Mashed.com's list of beloved chain restaurants that completely disappeared (along with HomeTown Buffet and Howard Johnson's), Chi-Chi's was a thriving Tex-Mex establishment that once boasted over 200 locations in the U.S. 

“The chain faced some major hardships during its run, including a 2003 bankruptcy filing that was immediately followed by the worst outbreak of hepatitis A in the nation's history,” notes mashed.com. “The outbreak, which was likely caused by raw green onions in the restaurant's free salsa, effectively ended Chi-Chi's, and the chain's remaining locations were purchased by Outback Steakhouse and turned into other restaurant brands owned by the Australian-inspired steakhouse chain.”

Chi-Chi’s branding is still used on packaged food and margaritas that will continue to be sold at stores. Hormel has made chips, salsas and other Chi-Chi’s products since the late 1980s.

“The revival of Chi-Chi’s comes as other nostalgic chains are facing mixed results. Chili’s has repeatedly reported strong earnings this year, while Red Lobster and TGI Fridays both filed for bankruptcy,” according to CNN Business. “The seafood chain introduced a new happy hour, among other menu changes, to revive the chain under a new CEO; while Fridays has quietly closed another dozen restaurants in the past few weeks.”