The popular 90’s midwest eatery Chi Chi's Mexican restaurant is set to make a comeback 20 years after shutting its doors and devastating patrons across the country. The Mexican restaurant chain, which first opened in the Minneapolis suburbs in 1976, going on to expand to more than 200 locations nationwide, peaked in popularity in the 1990s.
Chi-Chi's, founded in 1975 by Marno McDermott and Max McGee, a former Green Bay Packers player, will now be reopened by Michael McDermott, son of the chain's founder, in partnership with Hormel Foods, a Minnesota-based global food company that owns the Chi-Chi's trademarks.
Michael McDermott has yet to unveil his plans for the menu but said he plans to
“Bring the brand back in a way that resonates with today's consumer—an updated dining experience with the same great taste and Mexican flavor."
According to multiple reports, the first two new Chi-Chi's restaurants are expected to open in Minnesota in 2025. Michael McDermott has also devised plans to expand the restaurant in the Midwest and East Coast.
The comeback comes 20 years after Chi Chi's Mexican restaurant shut down due to a hepatitis A outbreak, resulting in the company's bankruptcy.
Chi Chi's Mexican Hepatitis A outbreak explored
In 2003, Chi Chi's Mexican restaurant went down in history as the location of one of the most infamous food safety incidents. An outbreak of Hepatitis A at a Chi-Chi’s restaurant outside Pittsburgh resulted in four deaths after at least 650 people contracted the illness.
Chi Chi's Mexican restaurant hepatitis A outbreak went down in history as the largest Hepatitis A outbreak in America. Hepatitis A is a liver infection caused by a virus. The infection is highly contagious and is spread through consuming contaminated food or water and through direct contact with the infected person. While Hepatitis A is not a life-threatening disease, it can sometimes result in liver failure.
In Chi Chi’s restaurant’s case, the contamination stemmed from green onion, which was traced back to farms in Mexico. At the time, the FDA said the onions could have been contaminated due to inadequate sanitation or handwashing, poor hygiene among workers, or using untreated water to irrigate the crops.
While green onions were used in many Chi Chi dishes, not all the victims ordered food with the ingredient. However, the fresh salsa placed on every table at the restaurant reportedly contained green onions.
While the Hepatitis A outbreak cemented the restaurant’s demise, there were other contributing factors to its closure in 2004.
One year before the outbreak, the company filed for Chapter 11 bankruptcy after financially overextending itself with expansions. However, after the outbreak in 2003, at least 300 customers sued Chi Chi's.
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According to NBC, Richard Miller, one of the victims, settled his Chi Chi's lawsuit for $6.25 million after he needed a liver transplant from the Hepatitis A infection.
After the lawsuits were settled, the brand could not recover from the scandal. Outback Steakhouse bought the brand for over $40 million and closed the Mexican chain in 2004.
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