Chi-Chi’s: The Mexican Chain That Defined Family Dining
Chi-Chi’s announced plans to start opening locations again in 2025, roughly 20 years after it disappeared. A series of ownership changes, a Chapter 11 bankruptcy filing, and a deadly Hepatitis A outbreak linked to green onions in its salsa all led to the closures of Chi-Chi’s last remaining restaurants in 2004. But Michael McDermott, son of Chi-Chi’s co-founder Marno McDermott, is reviving the brand after inking an agreement that allows him to use the Chi-Chi’s name on physical restaurants. Nearly fifty years after the first Chi-Chi’s started service near Minneapolis in 1975, McDermott opened a new Chi-Chi’s nearby in late 2024. A second Chi-Chi’s in Maple Grove, Minnesota, is set to debut in fall 2025.
The chain’s return speaks to something deeper than mere nostalgia. There was one place, and one place only, to go for your birthday dinner in the ’90s and share a giant fried ice cream with your family and friends. And that was Chi’s Chi’s of course. In the heyday of the 90s, Chi’s Chi’s was the place to be. For countless American families, Chi-Chi’s wasn’t just dinner out, it was where celebrations happened.
McDermott stated “I still have fond memories of growing up in the CHI-CHI’S restaurants that my father built throughout their time, instilling in me the passion and determination to pursue my own career in the restaurant industry.” This personal connection suggests the revival isn’t just about capitalizing on a brand name, but honoring a family legacy that meant something to millions of diners.
Red Lobster: America’s Seafood Institution Gets New Leadership
In May 2024, it filed for bankruptcy, citing around $30 million in accessible cash against $1 billion in debts. Of its 578 restaurants in North America, dozens closed immediately, but by September 2024, Red Lobster had righted the ship. Investors associated with Fortress Investment Group created RL Investor Holdings LLC and fully took over the struggling seafood chain, plunging $60 million into a recovery campaign…