Chi-Chi’s reopens after two decades with fresh focus
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Chi-Chi’s is returning to the US dining scene after a two-decade absence. The once-familiar Mexican-inspired restaurant chain has opened a new flagship location in St. Louis Park, Minnesota, just outside Minneapolis.
The relaunch is being led by Michael McDermott, son of one of the original co-founders. McDermott has secured the naming rights from Hormel Foods and says the new Chi-Chi’s will balance familiar dishes with updates to match current food preferences.
Familiar favorites and menu updates
Chi-Chi’s became popular in the 1970s and 1980s, especially in the Midwest and on the East Coast, for offering what was then a relatively new experience in Mexican-style dining. Items like chimichangas, deep-fried ice cream and seafood enchiladas helped define the brand.
According to McDermott, those recipes are returning, but the menu will also introduce options that reflect changing tastes. He acknowledged that the average American diner has become more familiar with a broader range of Mexican cuisine, and the updated menu is intended to reflect that shift.
“We have all the original recipes, so we’re bringing back a number of those,” McDermott said. “We want to make sure the menu reflects that as well with certain items, not just the Chi-Chi’s items, but items that Chi-Chi’s has never had.”
A measured approach to rebuilding
McDermott is no stranger to the restaurant business. He previously founded Kona Grill and Rojo Mexican Grill. Even with that experience, he says bringing Chi-Chi’s back has presented some unexpected challenges.
While the brand has been off the market since 2004, McDermott said interest from former customers has been steady since plans for the return were announced. He’s received letters from people who had their first jobs at Chi-Chi’s, met spouses there or marked family milestones with a meal at the restaurant.
That nostalgia may help bring people in, but the team behind the relaunch understands that sentiment alone won’t keep them coming back. The food and experience need to feel current.
The new restaurant is designed with the original atmosphere in mind, but it has been updated to suit a more modern dining environment. The goal, McDermott said, is to create something that feels familiar without appearing dated.
Focus on the Midwest and East Coast
For now, the plan is to grow gradually. McDermott says the expansion strategy will likely mirror the path the original chain followed, beginning in the Midwest and then moving toward the East Coast. Several potential franchisees and developers have already expressed interest, though McDermott emphasizes that the priority is getting the first location right.
The broader market for Mexican and Mexican-inspired dining has changed significantly since Chi-Chi’s last operated in the US Fast-casual chains and regional taquerias have shaped what diners expect in terms of flavor, presentation and ingredient quality.
Chi-Chi’s return comes as many restaurant brands look to strike a balance between brand recognition and relevance. It’s an approach that will likely define how the chain moves forward in a competitive market.
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