Chi-Chi's

Chi-Chi's is a Mexican-food brand with two closely connected histories: an American restaurant chain and a packaged-food business. The restaurant concept was founded in 1975 in Richfield, Minnesota, by restaurateur Marno McDermott and former Green Bay Packers player Max McGee. McDermott had previously been involved with the Zapata Mexican fast-food chain, later associated with the Zantigo name. Chi-Chi's positioned its restaurants as colorful, accessible Mexican dining establishments rather than strictly traditional regional restaurants, using food, decor, and promotional language to present a festive experience. Its early slogans included “A celebration of food” and, later, “Life always needs a little salsa.” From 1977 through 1986, the chain was led by Shelly Frank, a former KFC executive. During that period its headquarters moved to Louisville, Kentucky, Frank’s hometown, and the business expanded substantially. By March 1995, Chi-Chi's had approximately 210 locations. The chain operated in the United States and Canada and also became associated with international franchising, although the North American restaurant business later encountered severe financial and reputational difficulties. The packaged-food side developed separately from the restaurant company. In 1987, Hormel Foods acquired rights to produce and market Chi-Chi's-branded salsa and related grocery products in the United States. The line broadened into products such as salsas, dips, tortillas, tortilla chips, and taco-seasoning mixes. By 1996, the packaged-food venture was reported to be generating approximately $60 million annually; that figure is historical rather than a current valuation or sales statement. In 2009, Hormel placed the brand within MegaMex Foods, a 50:50 joint venture with Mexico-based Herdez Del Fuerte. Chi-Chi's became part of a portfolio that also included brands such as Herdez, La Victoria, and Búfalo. Packaged products have been distributed through supermarkets and discount retailers in North America. The American restaurant chain was controlled in its final years by Prandium Inc., a restaurant operator that had previously used other corporate names and had experienced earlier bankruptcy filings. Chi-Chi's and fellow Prandium subsidiary Koo Koo Roo filed for Chapter 11 bankruptcy protection on October 8, 2003. The crisis intensified in November 2003 when a hepatitis A outbreak was linked to green onions served at a Chi-Chi's restaurant near Monaca, Pennsylvania. The outbreak caused at least four deaths and illnesses among approximately 660 people in the Pittsburgh area, with additional secondary infections reported. Litigation was settled by July 2004. At that point the chain had only about 65 restaurants, fewer than half its reported mid-1990s scale. In 2004, Outback Steakhouse offered approximately $42.5 million for the right to select 76 Chi-Chi's properties, but did not acquire the brand name, restaurant operations, or recipes. Chi-Chi's closed its remaining U.S. and Canadian restaurants during the weekend of September 18, 2004. Many former properties were subsequently sold or repurposed, including through transactions involving Kimco Realty. The closure ended the original North American restaurant chain, but not the grocery brand. Separate franchise activity continued in Europe. Belgian entrepreneur Francis Leroy obtained the Belgian master franchise in 2002 and later acquired broader European, North African, and Chinese franchise rights. The European operation experienced closures and uneven expansion, including an unsuccessful Danish effort and restaurant closures in Belgium. It opened its first Austrian location in Vienna in 2018. The final European restaurant closed in Vienna by 2024, leaving the packaged-food business as Chi-Chi's principal established operation. A restaurant revival was announced in December 2024. Michael McDermott, son of founder Marno McDermott, planned to operate new restaurants through Chi-Chi's Restaurants, LLC, with Hormel Foods permitting use of the trademark for physical restaurant locations. The first revived restaurant was reported to open in St. Louis Park, Minnesota, on October 6, 2025. Plans to convert a second Rojo Mexican Grill location in Maple Grove were later abandoned after that restaurant closed. The revived concept combines selected dishes associated with the former Chi-Chi's menu with items from Rojo's menu. Thus, Chi-Chi's currently represents a legacy restaurant identity extended through a continuing packaged-food business and a limited, newly revived restaurant concept.

Chi-Chi's began as a Mexican restaurant chain founded in 1975 in Richfield, Minnesota, by Marno McDermott and former Green Bay Packers player Max McGee. The name came from McDermott's wife's nickname. Under Shelly Frank, who led the chain from 1977 to 1986, the company moved its headquarters to Louisville and expanded across the United States and Canada. It reached approximately 210 locations by March 1995. The brand developed a parallel packaged-food business when Hormel Foods obtained U.S. rights in 1987 to make and market Chi-Chi's salsa and related products. The grocery range later included dips, tortillas, tortilla chips, and taco-seasoning mixes. In 2009, the brand became part of MegaMex Foods, the 50:50 Hormel–Herdez Del Fuerte joint venture created to manufacture and distribute Mexican-food products in the United States. The restaurant chain's final years were shaped by ownership instability and declining scale. Prandium Inc. controlled the business when Chi-Chi's filed for Chapter 11 bankruptcy on October 8, 2003. In November of that year, a hepatitis A outbreak associated with green onions served at a restaurant near Monaca, Pennsylvania, sickened approximately 660 people and caused at least four deaths. The resulting lawsuits were settled by July 2004. With only about 65 restaurants remaining, Chi-Chi's closed all of its U.S. and Canadian locations in September 2004. Outback Steakhouse acquired rights to select former properties but did not buy Chi-Chi's name, operations, or recipes. International franchising followed a separate path. Francis Leroy acquired the Belgian master franchise in 2002 and later obtained wider franchise rights. The European operation experienced closures in Belgium and Germany and limited success in other markets. A Vienna restaurant opened in 2018 and became the last European location before closing by 2024. In December 2024, Michael McDermott, son of co-founder Marno McDermott, announced plans to restore the restaurant concept in the United States. Hormel Foods allowed the use of the Chi-Chi's trademark for the new physical restaurants. A revived location opened in St. Louis Park, Minnesota, in October 2025. The new restaurant combines selected legacy Chi-Chi's dishes with offerings associated with Rojo Mexican Grill. Although the original chain disappeared from North American restaurant streets in 2004, the grocery business preserved the brand and provided the foundation for its later restaurant revival.

• 2025

  First revived restaurant opens in Minnesota

  [1]Chi-Chi'sen.wikipedia.org

  A revived Chi-Chi's restaurant opens in St. Louis Park, Minnesota.

• 2024

  U.S. restaurant revival announced

  [1]Chi-Chi'sen.wikipedia.org

  Michael McDermott announces plans to relaunch Chi-Chi's restaurants in the United States with permission from Hormel Foods.

• 2018

  European franchise opens in Vienna

  [1]Chi-Chi'sen.wikipedia.org

  The European Chi-Chi's franchise opens its first Austrian restaurant in Vienna.

• 2009

  Chi-Chi's joins MegaMex Foods

  [1]Chi-Chi'sen.wikipedia.org

  Hormel and Herdez Del Fuerte create MegaMex Foods, which includes Chi-Chi's among its Mexican-food brands.

• 2004

  North American restaurants close

  [1]Chi-Chi'sen.wikipedia.org

  Chi-Chi's shuts its remaining U.S. and Canadian restaurants after its bankruptcy and public-health crisis.

• 2003

  Bankruptcy and hepatitis A crisis

  [1]Chi-Chi'sen.wikipedia.org

  The restaurant company files for Chapter 11 and is soon associated with a major hepatitis A outbreak in Pennsylvania.

• 2001

  Trademark application for “salsafication” denied

  [1]Chi-Chi'sen.wikipedia.org

  Chi-Chi's applies to trademark the word “salsafication,” but the application is denied by the Trademark Trial and Appeal Board.

• 1995

  Restaurant network reaches approximately 210 locations

  [1]Chi-Chi'sen.wikipedia.org

  The chain's reported footprint reaches about 210 restaurants by March.

• 1987

  Hormel enters the Chi-Chi's grocery business

  [1]Chi-Chi'sen.wikipedia.org

  Hormel Foods acquires U.S. rights to produce and market Chi-Chi's salsa and related packaged products.

• 1977

  Shelly Frank takes leadership

  [1]Chi-Chi'sen.wikipedia.org

  Former KFC executive Shelly Frank begins running the chain and later moves its headquarters to Louisville.

• 1975

  First Chi-Chi's restaurant opens

  [1]Chi-Chi'sen.wikipedia.org

  Marno McDermott and Max McGee open the first Chi-Chi's restaurant in Richfield, Minnesota.

A festive, accessible Mexican-food brand spanning supermarket products and casual Mexican restaurant dining.

• Packaged food · 1987

  Salsa

  Salsa was the foundation of Chi-Chi's packaged-food business after Hormel obtained U.S. production and marketing rights in 1987. The products extend the restaurant brand into supermarket and discount-store channels and remain part of the brand's principal consumer offering.

• Packaged food

  Dips

  Chi-Chi's branded dips form part of the grocery range developed around the brand's Mexican-food identity. They are sold as convenient accompaniment products alongside salsa, chips, tortillas, and other at-home Mexican-food items.

• Packaged food

  Tortillas and tortilla chips

  Tortillas and tortilla chips broaden the brand beyond condiments into staple and snack products for home preparation and casual entertaining. They are distributed through retail channels in the same packaged-food portfolio as Chi-Chi's salsa and dips.

• Packaged food

  Taco seasoning mixes

  Taco-seasoning mixes provide a shelf-stable cooking product linked to Chi-Chi's Mexican-food positioning. The mixes complement the brand's other grocery products and support preparation of Mexican-style meals at home.

• Restaurant offering · 1975

  Chi-Chi's restaurant menu

  The original restaurant concept offered casual Mexican-style meals in a festive setting. The revived Minnesota restaurant combines selected items associated with the former Chi-Chi's menu with dishes from the Rojo Mexican Grill concept.

• 2003

  Hepatitis A outbreak associated with Pennsylvania restaurant

  A hepatitis A outbreak in the Pittsburgh region was traced to green onions served at Chi-Chi's near Monaca, Pennsylvania. At least four people died and approximately 660 others became ill. Lawsuits connected with the outbreak were settled by July 2004.

  Source

Read more

• A celebration of food

  United States · Canada

  An early Chi-Chi's slogan framed the restaurant experience as festive and social, reinforcing the chain's accessible Mexican dining positioning.

  Source
• Life always needs a little salsa

  United States · Canada

  A later slogan connected the restaurant identity to salsa and helped bridge the dining concept with the packaged-food range.

  Source

• 2024

  Revive the Chi-Chi's restaurant conceptStrategy

  Background

  Although the original North American chain had closed in 2004, the trademark and consumer recognition remained associated with the packaged-food business.

  Action taken

  Michael McDermott announced new U.S. restaurants through Chi-Chi's Restaurants, LLC, using the trademark with Hormel Foods' permission.

  Aftermath

  A first revived location opened in St. Louis Park, Minnesota, in October 2025; a proposed Maple Grove conversion was abandoned.

  Source

• 2009

  Place Chi-Chi's within MegaMex FoodsM&A

  Background

  Hormel sought a broader platform for Mexican-food manufacturing and distribution in the United States.

  Action taken

  Hormel formed a 50:50 joint venture with Herdez Del Fuerte, with Chi-Chi's included in the resulting portfolio.

  Aftermath

  Chi-Chi's continued as part of a larger Mexican-food brand group alongside Herdez, La Victoria, and Búfalo.

  Source

• 2004

  Close the remaining North American restaurantsOther

  Background

  Bankruptcy, declining restaurant count, and the 2003 hepatitis A crisis left the chain with approximately 65 locations.

  Action taken

  Chi-Chi's closed all remaining U.S. and Canadian restaurants in September 2004.

  Aftermath

  Outback Steakhouse acquired rights to select properties but did not acquire the Chi-Chi's brand, operations, or recipes.

  Source

• 1987

  Expand Chi-Chi's into packaged grocery productsStrategy

  Background

  The restaurant identity offered an established platform for Mexican-food products sold outside restaurants.

  Action taken

  Hormel Foods acquired U.S. rights to produce and market Chi-Chi's salsa and related products.

  Aftermath

  The grocery business outlasted the original North American restaurant chain and became the brand's continuing core.

  Source

1. 1Chi-Chi'sen.wikipedia.org