Chi-Chi's Mexican Restaurant Chain to Make Comeback — Will Pittsburgh Get One?

In a year heavily punctuated by restaurant closures due to financial distress, the return of Chi-Chi's, a once-popular Mexican restaurant chain, across the nation and the 412, is a refreshing twist for many. After shutting its doors nearly two decades ago following severe challenges, including bankruptcy and a large-scale foodborne illness outbreak, the beleaguered and beloved restaurant announces its comeback.

Hormel Foods, which owns the Chi-Chi’s trademarks, announced on Tuesday that it has reached an agreement with Michael McDermott, son of the brand's founder, allowing him to open Chi-Chi’s restaurants starting next year.

“We have seen the impact our restaurant has had on individuals and families across the country and believe there is a strong opportunity to bring the brand back in a way that resonates with today's consumer,” said McDermott, also the founder of two other restaurant chains, Kona Grill and Rojo Mexican Grill.

Will Pittsburgh Get A Chi-Chi's Restaurant?

Despite the good news for many, It is unclear if Pittsburgh can expect to get a Chi-Chi's back anytime soon. Two Chi-Chi's are planned to open in Minnesota, where Chi-Chi's first got underway almost 50 years ago. After that, McDermott intends to "explore the original development path Chi-Chi's took" with both company-owned and franchised stores in the Midwest and East Coast. 

Chi-Chi's had at its peak over 200 locations spread across the U.S., several of which were in the Pittsburgh area. According to multiple reports, the relaunch aims to breathe new life into the brand while preserving the essence of its Mexican flavor that many grew to love.

Despite the chain's closure in the U.S. by 2004 due to multiple ownership changes and bankruptcy, Chi-Chi's had left its mark on the restaurant industry and many Pittsburghers remember it well. 

Founded in 1975 by restaurateur Marno McDermott and former Green Bay Packers player Max McGee, the chain proliferated, selling franchises and gaining fame for bringing spicy Tex-Mex fare, chimichangas, and fried ice cream to mainstream U.S. audiences.

However, troubles hit a peak in 2003 when the largest hepatitis A outbreak in U.S. history was traced back to a Chi-Chi's location in Monaca, Pennsylvania, leading to an eventual shutdown. It would go on to become the largest hepatitis A outbreak in U.S. history, claiming 660 victims and resulting in four deaths. More than 300 people sued Chi-Chi’s for damages. 

According to reports, by 2024, Outback Steakhouse purchased the remaining Chi-Chi's properties in the U.S. and Canada but did not retain the name or recipes.

Chi-Chi's still survives in the form of widely popular salsa and other products sold in major grocery stores, thanks to a partnership with Hormel Foods in 1987. However, with the upcoming revival, fans can once again look forward to enjoying their favorite Mexican cuisine at Chi-Chi's, in an environment that promises to resonate with the contemporary diner.

However, only time will tell, if we'll be enjoying fried ice cream at a Chi-Chi's in Pittsburgh anytime soon.