The Chain That Introduced Countless Americans To Tex-Mex Food

It's wild to think about now, but there was a time when a lot of Americans hadn't really tried Tex-Mex food, let alone authentic Mexican food, especially in places like the Midwest. In the '80s, it wasn't something you'd find on every corner. Then Chi-Chi's showed up. It opened in Minneapolis in 1975, not Texas or California, but it worked.

The food wasn't super traditional. It didn't claim to be. You got fajitas, nachos, chimichangas, taco salads in fried tortilla bowls, lots of cheese, big plates, loud colors, and frozen margaritas. That kind of thing. And people loved it, especially in suburban areas, where you didn't really have anything like it. Chi-Chi's became the go-to for a night out — fun, casual, with a menu that felt adventurous if you'd never had Tex-Mex. It quickly became one of the most popular restaurant chains in the 1980s.

So, whatever happened to Chi-Chi's restaurants? It grew fast to over 200 locations at one point, but after a while, it started to fall apart. Ownership changes, other chains showing up, and then in 2003, a big hepatitis A outbreak hit. The whole thing unraveled. They filed for bankruptcy, and by 2004, the restaurants were closed. The chain later faced criticism for cultural appropriation, but it also left behind a wave of nostalgia. Chi-Chi's changed what a lot of people thought Mexican food meant, even if it wasn't traditional.

Even though the restaurants shut down, Chi-Chi's didn't completely disappear. You can still find the brand in stores. Hormel owns it now. They sell Chi-Chi's salsa, chips, tortillas, and spice mixes. So yeah, taco night lives on. But now the name might be coming back in a bigger way.

Michael McDermott, son of Chi-Chi's co-founder Marno McDermott, secured the rights to open new restaurants under the Chi-Chi's name. The defunct Mexican restaurant is making a comeback in 2025, with the first two locations planned for Minneapolis, where it all started. He's raising money through StartEngine, which lets people invest early. The idea is to update the vibe and the space, but keep the same core flavors people remember, with the same name and a familiar feel.

Will it work? Hard to say. The food scene's totally different now, but Chi-Chi's still means something to a lot of people. Maybe it was your first chimichanga, or just that place with the fried ice cream your parents took you to. For a lot of people, those memories left an impression. So yeah, the brand's still around, and soon, maybe the restaurants will be too.