674f4a6e8b5dcaefe4cd463a Chichis

Chi-Chi’s Restaurants Returning After Two Decades

Dec. 3, 2024
21 years after a landmark food safety incident, the founder’s son got permission to use the name from Hormel, which holds the trademark. Restaurant openings will occur next year.

Nearly 20 years after closing its last restaurant, Mexican restaurant chain Chi-Chi’s is set to make a comeback in 2025, in part thanks to an agreement with Hormel Foods, owner of the Chi-Chi’s trademarks.

Hormel granted Michael McDermott, son of Chi-Chi’s founder, use of the fabled name on physical restaurant locations. McDermott, who has built his career in the restaurant industry with brands like Kona Grill and Rojo Mexican Grill, wants to honor his family's legacy by combining the classic Chi-Chi’s restaurant experience with modern influences.

Founded by restaurateur Marno McDermott and former Green Bay Packers player Max McGee in 1975, the restaurant chain grew rapidly during the late 20th century, reaching more than 200 locations nationwide. However, the chain ceased operating in 2004.

Today’s announcement blamed “a series of ownership changes” on the closing, which is factual. But the chain also was crippled by one of this country’s most infamous (and influential) food safety incidents, a November 2003 outbreak of hepatitis A that began at a Chi-Chi’s restaurant outside Pittsburgh.

It remains the largest hepatitis A outbreak in American history, and by the time it ended at least 650 people contracted the illness, four died and it helped change the response and regulatory frameworks of this country.

The villain was fresh green onions, which the FDA traced back to farms in Mexico. While some victims ate menu items with green onions, others had eaten none; but everybody ate the free salsa placed on each table, which had green onions.

Some of the things that resulted from the outbreak:

  • It brought attention to the unique dangers of fresh produce and led to the 2008 creation of the Produce Traceability Initiative.
  • Its memory was one of the motivators for the FDA’s 2020 produce traceability rule, “Requirements for Additional Traceability Records for Certain Foods.”

Just a month before, the owners of the restaurant chain had filed for bankruptcy protection. By the time the lawsuits were settled, the chain was out of business.


PHOTO AT TOP is Michael McDermott.

About the Author

Dave Fusaro | Editor in Chief

Dave Fusaro has served as editor in chief of Food Processing magazine since 2003. Dave has 30 years experience in food & beverage industry journalism and has won several national ASBPE writing awards for his Food Processing stories. Dave has been interviewed on CNN, quoted in national newspapers and he authored a 200-page market research report on the milk industry. Formerly an award-winning newspaper reporter who specialized in business writing, he holds a BA in journalism from Marquette University. Prior to joining Food Processing, Dave was Editor-In-Chief of Dairy Foods and was Managing Editor of Prepared Foods.

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