Chi-Chi's Restaurants

by Chi-Chi's

1976 – 2004 IT CAME BACK

Back, carefully: the first new Chi-Chi's opened in St. Louis Park, Minnesota on October 6, 2025, under license from Hormel. The 2003 outbreak killed four people — that part of the story gets no punchline.

Last verified Nov 7, 2026

The Mexican casual-dining giant of the mall era, founded by Marno McDermott and former Packer Max McGee, opened in Richfield, Minnesota in 1976. A deadly 2003 hepatitis A outbreak hit an already-bankrupt chain, and every restaurant closed in 2004.

🧾 One more thingThe salsa never died: Hormel has owned the Chi-Chi's grocery trademark since 1987 and kept selling it through 21 restaurant-less years — and it was Hormel's license to the founder's son that brought the restaurants back.

Filed under: Fast Food · the ’70s & earlier

🎲 Remember another one 🛒 Test your memory

📅 Timeline

1976First restaurant opens in Richfield, Minnesota — founded the year before by Marno McDermott and former Green Bay Packer Max McGee.
1987Hormel takes over the Chi-Chi's grocery trademark — the salsa and mixes that would outlive the restaurants.
2003A hepatitis A outbreak traced to green onions at the Monaca, Pennsylvania location kills four people and sickens more than 600, per the CDC. The chain is already in bankruptcy.
2004The remaining 65 restaurants close in September; Outback pays $42.5 million for 76 properties — not the name or the recipes.
2025October 6 — the first new Chi-Chi's opens in St. Louis Park, Minnesota, run by founder's son Michael McDermott under license from Hormel.

❓ People also ask

Is Chi-Chi's coming back?

It's back: the first new location opened October 6, 2025 in St. Louis Park, Minnesota, with more planned. Hormel, which owns the trademark, licensed the name to the founder's son.

Why did Chi-Chi's close?

The chain was already in bankruptcy when a 2003 hepatitis A outbreak at its Monaca, Pennsylvania location killed four people and sickened over 600. Every remaining restaurant closed in September 2004.

Did Chi-Chi's salsa ever go away?

No. Hormel has sold Chi-Chi's salsa and mixes continuously since the 1980s — the grocery brand and the restaurants are separate businesses, which is why the salsa survived the chain by two decades.

🧾 Sources

CBS News Minnesota, Chi-Chi's Mexican restaurants plan return, 20 years after closing (2024)
CBS News, Reborn Chi-Chi's opens in St. Louis Park (2025)
The Washington Times / AP, Chi-Chi's restaurants to close; Outback buys properties (2004)
CDC MMWR, Hepatitis A Outbreak Associated with Green Onions at a Restaurant — Monaca, Pennsylvania, 2003 (2003)

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