• by Teresa Buyikian , February 28, 2025

One old-school American Mexican restaurant is counting on its customers’ love of nostalgia to help fund its comeback.

This week Chi-Chi’s announced plans to “offer the public a stake in the brand's relaunch through regulation crowdfunding” on StartEngine, the platform, advised by “Shark Tank'”s Kevin O'Leary, that enables everyday people to invest in startups.

The throwback Mexican restaurant Chi-Chi’s shuttered its last location in 2004 after a bankruptcy and a hepatitis A outbreak in the Pittsburgh area, which resulted in  approximately four deaths and 660 other victims and traced back to green onions served at one location, per Wikipedia.  The Mexican chain had once operated almost 200 stores across the US and Canada.

Last December, Michael McDermott, the son of the brand’s original owner, Marno McDermott, announced the return of Chi-Chi's Restaurants, LLC, under his tutelage.

"The enthusiastic response to our announcement about bringing back Chi-Chi’s was overwhelming -- greater than I ever anticipated," McDermott said. "[People] were buzzing about it on social media, sharing fond memories of their experiences.”

He added, “I want to engage with the Chi-Chi’s community as much as possible with the comeback. This opportunity is open to eligible investors in accordance with applicable securities laws, and anyone who contributes is playing a pivotal role in the future of Chi-Chi’s."

The brand is looking to raise $3.5 million with a minimum investment of $250 in exchange for equity in the brand. Funds raised will aid in the company’s planned development, subject to business needs and discretion. The first new location is scheduled to open in Minnesota sometime in 2025, where the company is converting a Rojo Mexican Grill in St. Louis Park to Chi-Chi’s.