Chi-Chi’s Michigan Comeback Could Happen

Chi-Chi's Mexican restaurant chain is making a comeback, with the first new location opened in St. Louis Park, Minnesota, on October 6, 2025

The chain, which closed its last U.S. restaurant in 2004, is relaunching.

Michael McDermott, the son of founder Marno McDermott, struck a deal with Hormel Foods, the owner of the Chi-Chi's trademarks, to open new locations. 

The relaunch features a mix of classic menu items and new options, with plans for future locations and a franchise model.  

Chi-Chi’s filed for bankruptcy in October 2003, according to Marler Clark, the law firm that later represented families in a lawsuit after multiple people became sick, allegedly due to green onions.

Four people passed away, and allegedly more than 650 people fell ill.

The company agreed to pay $800,000 to compensate the 9,489 people who got sick.

According to the restaurant, the St. Louis Park location will have more modern decor, “inviting ambiance,” as well as original menu items customers may remember, such as the Nachos grand made up of refried beans, ground beef, cheese, jalapeños, the original Chimichanga, and seafood enchiladas.

The Original Chimichanga – Crispy chimichangas stuffed with beef, chicken, short rib, or red chili and served with guacamole, sour cream, pico de gallo, rice, and beans.

Quesabirria Tacos – Three corn tacos filled with slow-cooked beef, Oaxaca cheese, onions, cilantro, and consommé dipping sauce.

Seafood Enchiladas – Shrimp and crab smothered in a signature lobster cream sauce, served with sour cream, guacamole, beans, and rice.

Manchego Burger – Angus beef topped with manchego cheese, pico de gallo, avocado, and chipotle mayonnaise. Served with fries.

Original Nachos Grande – House tortilla chips topped with refried beans, ground beef, melty cheese, and jalapeños.

El Burro Con Queso – A burrito packed with ground beef or shredded chicken, cheese, chili con queso, and ranchero sauce. Served with beans and a choice of rice

The restaurant is making a comeback in 2025, with new locations planned.

Specific locations for Michigan are not yet announced.

 Purchased by Michael McDermott, son of the founder, who plans to reopen restaurants.

 While the first locations will be in Minnesota, the overall goal is to eventually explore development opportunities in states like Michigan.