Two decades after filing for bankruptcy, America's beloved '90s Mexican chain Chi-Chi's is making a comeback

If you were a fan of Chi-Chi’s in the 1980s or the 1990s, there is good news for you. The beloved Mexican restaurant chain is back after two decades. Earlier this month, Chi-Chi’s reopened its doors in St. Louis Park, Minnesota, marking its first location in the United States in more than 20 years. The chain, once known for its festive atmosphere and signature dishes like chimichanga and nachos grande, is undergoing an ambitious revival, according to a Penn Live report. According to another SI Live report, Michael McDermott, son of Chi-Chi’s co-founder Marno McDermott, now leads Chi-Chi’s Restaurants, LLC, and said the comeback is about honoring the brand’s legacy while giving it a modern twist. Michael said they were “bringing back the food, energy and fun that people love”, but with a “fresh twist for a whole new generation”. He added that the restaurant is “incredibly grateful” to its supporters and investors who made the moment possible. Beloved brand reborn Chi-Chi’s, founded in 1975, became a household name during the 1980s and 1990s, boasting more than 200 locations across the United States. It was known for its lively dining experience and hearty Tex-Mex offerings, the Penn Live report said. However, the brand’s decline began in 2003 when a hepatitis A outbreak linked to contaminated green onions in Pennsylvania resulted in several deaths and hundreds of illnesses. Soon after, Chi-Chi’s filed for bankruptcy and closed all US restaurants by 2004. Now, after 20 years, the company is betting on nostalgia and quality to rebuild its reputation, the report added. What’s on the New Chi-Chi’s Menu As per SI Live, the revived Chi-Chi’s combines classic dishes with new favorites designed to appeal to both longtime fans and first-time diners. Among the highlights are: Chi-Chi’s original chimichanga: Crisp and golden, filled with beef, chicken, short rib, or red chili, served with guacamole, sour cream, pico de gallo, rice and beans. Quesabirria Tacos: Corn tacos filled with slow-cooked beef, Oaxaca cheese, onions and cilantro, served with consommé. Seafood Enchiladas: A mixture of shrimp and crab in a lobster cream sauce. Manchego Burger: Wood-grilled Angus beef topped with Manchego cheese, pico de gallo, avocado and chipotle mayo. Original Nachos Grande: Layered beans, beef, cheese and jalapeños. El Burro Con Queso: A hearty burrito with beef or shredded chicken, cheese and ranchero sauce. Nostalgic revival for a new generation Chi-Chi’s return isn’t just about food; it’s about emotion. The relaunch comes at a time when millennials are increasingly turning to nostalgia as a source of comfort amid economic uncertainty and social isolation, reports The Independent. Psychologists note that nostalgia can act as a ‘psychological immune system’, helping people cope with stressful times. By bringing back familiar flavors and fond memories, Chi-Chi’s hopes to tap into that emotional connection. The Independent report added that the restaurant’s comeback has already attracted strong support. More than 2,000 investors contributed more than $2.3 million through an equity crowdfunding campaign on StartEngine, and plans are underway to open a second location in Minnesota and eventually expand nationwide. Frequently Asked Questions What are Chi-Chi’s? Chi-Chi’s is a once-popular Mexican restaurant chain that flourished in the 1980s and 1990s, known for its festive atmosphere and Tex-Mex dishes. Why did Chi-Chi’s close? The chain filed for bankruptcy in 2003 after a hepatitis A outbreak linked to contaminated green onions in one of its restaurants. Where are the new Chi-Chi’s located? The first revived Chi-Chi’s opened in 2025 in St. Louis Park, Minnesota, opened.