If you were a fan of Chi-Chi in the 80s or 90s, we have good news for you. The popular Mexican restaurant chain is back after two decades. Earlier this month, Chi-Chi’s reopened its doors in St Louis Park, Minnesota, marking its first location in the United States in more than 20 years. The chain, once known for its festive atmosphere and signature dishes like chimichanga and nachos grande, is staging an ambitious revival, according to a report from Penn Live.
According to another SI Live report, Michael McDermott, son of Chi-Chi co-founder Marno McDermott, now heads Chi-Chi’s Restaurants, LLC, and said the return is about honoring the brand’s legacy while giving it a modern twist. Michael said they are “bringing back the food, energy and entertainment that people love”, but with “a fresh twist for a whole new generation”. He added that the restaurant is “incredibly grateful” to its supporters and investors who made this moment possible.
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A popular brand reborn
Founded in 1975, Chi-Chi’s became a household name throughout the 1980s and 1990s, with more than 200 locations across the United States. It was known for its lively dining experience and hearty Tex-Mex menu, Penn Live reported.
However, the brand’s decline began in 2003, when an outbreak of hepatitis A linked to contaminated green onions in Pennsylvania resulted in several deaths and hundreds of illnesses. Shortly after, Chi-Chi’s filed for bankruptcy and by 2004 had closed all of its American restaurants. Now, after 20 years, the company is betting on nostalgia and quality to rebuild its reputation, the report added.
What’s on the New Chi-Chi’s Menu
According to SI Live, the revamped Chi-Chi’s mixes classic dishes with new favorites designed to appeal to both longtime fans and first-timers alike. Among the most important are:
Chi-Chi’s original chimichanga: Crispy and golden, filled with beef, chicken, short rib or red chili, served with guacamole, sour cream, pico de gallo, rice and beans.
Quesabilla Tacos: Corn tacos filled with slow-cooked beef, Oaxaca cheese, onions and cilantro, served with consommé.
Seafood Enchiladas: A mixture of shrimp and crab in a lobster cream sauce.
Manchego Burger: Wood-grilled Angus beef with Manchego cheese, pico de gallo, avocado and chipotle mayo.
Original Nachos Grande: Layered with beans, ground beef, cheese and jalapeños.
Donkey with cheese: Hearty burrito with ground beef or shredded chicken, cheese and ranchero sauce.
Also read: Beloved Mexican restaurant chain Abuelo’s goes bankrupt and will close more than half of its stores
Nostalgic revival for a new generation
Chi-Chi’s return isn’t just about food; it’s about emotions. The relaunch comes at a time when millennials are increasingly turning to nostalgia as a source of comfort amid economic uncertainty and social isolation, The Independent reported. Psychologists note that nostalgia can serve as a “psychological immune system” that helps people cope with stressful times. Chi-Chi hopes to bring back familiar tastes and fond memories, to tap into that emotional connection.
The Independent report added that the restaurant’s return has already received strong support. More than 2,000 investors have contributed more than $2.3 million through an equity crowdfunding campaign on StartEngine, and they plan to open a second location in Minnesota and eventually expand nationally.
Frequently asked questions
What is Chi-Chi’s?
Chi-Chi’s is a once-popular Mexican restaurant chain that thrived in the 1980s and 1990s and is known for its festive atmosphere and Tex-Mex cuisine.
Why did Chi-Chi close?
The chain filed for bankruptcy in 2003 after an outbreak of hepatitis A linked to contaminated green onions at one of its restaurants.
Where is the new Chi-Chi located?
The first restored Chi-Chi’s opened in St. Louis Park in Minnesota in 2025.
