Randy Chandler
Chi-Chi's is a Belgian restaurant chain and a Mexican-style grocery store owned by MegaMex Foods, LLC, a joint venture between Hormel Foods and Herdez Del Fuerte. Chi-Chi's grocery products, such as salsas, dips, tortillas, tortilla chips, and taco seasoning mixes, are widely available in major supermarkets and discount stores. The chain was founded by restaurateur Marno McDermott, named after his wife whose nickname was Chi Chi. Chi-Chi's restaurants were previously located in the United States, Canada, Germany, Belgium, and Austria, but many have since closed down. However, Chi-Chi's is planning a comeback in 2025, with new restaurants set to open in Minnesota and Austria, reviving the brand's legacy and bringing back iconic menu items that fans have cherished for years.
| Characteristics | Values |
|---|---|
| Cheese used in Chi-Chi's Pizza | Fluffy, buttery, creamy, similar to Mozzarella Whips |
| Chi-Chi's | A Belgian restaurant chain and a Mexican-styled grocery store |
| Chi-Chi's Brand Products | Salsa Con Queso, salsas, dips, tortillas, tortilla chips, and taco seasoning mixes |
| Chi-Chi's Restaurants | Exited the US and Canada in 2004, closed German and Belgian locations in 2022 |
| Chi-Chi's Comeback | Announced for 2025 by owner Hormel Foods |
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What You'll Learn
Chi-Chi's is a Belgian restaurant chain
Chi-Chi's was a popular Tex-Mex restaurant chain that began in Minnesota in the mid-1970s. The chain was started by Marno McDermott and Green Bay Packers player Max McGee. The restaurant served a range of Mexican-style dishes, including burritos, nachos, and pizzas, and was known for its generous portions and cheesy dishes. Chi-Chi's also sold Mexican-style grocery items, such as salsas, dips, tortillas, tortilla chips, and taco seasoning mixes, which can still be found in major supermarkets and discount stores.
In the early 1980s, Chi-Chi's experienced rapid growth, opening larger restaurants across the Midwest and introducing Mexican food to certain markets. However, this rapid expansion led to management issues and inconsistencies in food and service. The chain also faced competition from other Mexican restaurant chains, such as Taco Bell, El Torito, Casa Gallardo, and On the Border. In 2004, Chi-Chi's exited the United States and Canadian markets and closed its locations in Germany and Belgium.
In recent years, there have been efforts to revive the Chi-Chi's brand. In 2021, MegaMex hired a TikTok personality as their Chi-Chi's brand ambassador for the year's Cinco de Mayo advertising period. In 2024, Chi-Chi's restaurants announced their return, with plans to open new locations in Minnesota and revive popular menu items such as fried ice cream and seafood nachos. The chain's comeback is led by Michael McDermott, the son of co-founder Marno McDermott.
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Chi-Chi's grocery items are owned by MegaMex Foods
Chi-Chi's is a well-known name in the world of Mexican-style cuisine, with a history dating back to the 1970s. What began as a restaurant chain in Minnesota has since evolved, with its grocery items currently owned by MegaMex Foods.
The Chi-Chi's brand has had a tumultuous journey. The chain, founded by Marno McDermott and Green Bay Packers player Max McGee, experienced financial troubles and food poisoning scandals, which led to its eventual closure in the United States and Canada. However, the Chi-Chi's name persisted, and its legacy lived on through its grocery products. In 1987, Hormel Foods acquired the rights to produce and market Chi-Chi's-branded salsa and related products in the United States, and by 1996, they had turned it into a $60 million business.
In 2009, Hormel formed a joint venture with Herdez Del Fuerte, a Mexican food manufacturer, to create MegaMex Foods, LLC. This new company took over the production and distribution of Chi-Chi's-branded products, along with other Mexican food brands such as Herdez, La Victoria, and Búfalo. Today, Chi-Chi's grocery items are owned and manufactured by MegaMex Foods, and their products can be found in major supermarkets and discount stores across the United States.
Chi-Chi's grocery items include a range of Mexican-style products, such as salsas, dips, tortillas, tortilla chips, and taco seasoning mixes. One of their signature products is the Salsa Con Queso, a dip made with bold Monterey Jack Cheese, ripe tomatoes, and spicy peppers. Chi-Chi's also offers other cheesy delights, such as their Nacho Grande, which features a mix of Monterey Jack and Cheddar cheeses, and their famous Mexican Pizza, which likely included cheese as well.
While the Chi-Chi's restaurant chain may have faced its challenges, its grocery items have endured and continue to be a popular choice for those seeking Mexican-style food products, thanks to the ownership and distribution by MegaMex Foods.
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Chi-Chi's was founded by restaurateur Marno McDermott
The chain expanded rapidly, and by the early '80s, Chi-Chi's was opening larger restaurants (10,000-12,000 square feet) during a frenzied growth spurt. However, these larger restaurants proved challenging to operate profitably, and the rapid expansion contributed to numerous problems at the corporate level. By the 1990s, Chi-Chi's faced competition from Mexican fast-food chains like Taco Bell and even McDonald's, which added breakfast burritos to its menu.
In 1987, Hormel Foods acquired the rights to produce and market Chi-Chi's-branded salsa and related products in the United States. By 1996, Hormel was making $60 million annually from the Chi-Chi's product line. Despite the success of the product line, Chi-Chi's restaurants in the United States and Canada struggled financially and filed for bankruptcy in 2003. The chain exited the United States and Canada in 2004 and closed its German and Belgian locations in 2022, leaving only one restaurant in Vienna, Austria.
In 2024, Chi-Chi's announced its comeback for 2025, with the son of the chain's co-founder, Michael McDermott, planning to open new restaurants. The revived Chi-Chi's will bring back iconic menu items like fried ice cream, Mexican pizza, and seafood nachos, reigniting the nostalgia of Tex-Mex fans nationwide.
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Chi-Chi's filed for bankruptcy in 2003
Chi-Chi's was a Mexican-style restaurant chain and grocery store brand. It was founded by restaurateur Marno McDermott, whose wife's nickname was "Chi Chi", and former Green Bay Packers player Max McGee. The chain was known for its large restaurants, some totaling 12,000 square feet, and its expansion into states like Texas, New Mexico, and California, where there was already a strong demand for Mexican food.
In the late '80s, Chi-Chi's began to struggle due to its rapid expansion and high rates of management turnover. The company filed for Chapter 11 bankruptcy on October 8, 2003, along with Koo Koo Roo, another subsidiary of its parent company, Prandium Inc. This came just a month before a deadly hepatitis outbreak at a Chi-Chi's location in Beaver, Pennsylvania, which resulted in at least four deaths and 660 other victims of illness in the Pittsburgh area.
The hepatitis outbreak was traced back to green onions at the restaurant, and it proved to be the final straw for Chi-Chi's, as the company was unable to recover its reputation after inadvertently killing customers. In 2004, Outback Steakhouse bought out Chi-Chi's and converted its locations into their own brands. However, a few locations in Europe survived, and the Chi-Chi's brand lived on through its line of Mexican-style grocery products.
Today, Chi-Chi's is owned by MegaMex Foods, a joint venture between Hormel Foods and Herdez Del Fuerte. The brand includes salsas, dips, tortillas, tortilla chips, and taco seasoning mixes, which are sold in major supermarkets and discount stores. While the restaurant chain no longer operates in the United States and Canada, there are plans to relaunch in the United States in 2025, with two new locations in Minnesota.
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Chi-Chi's was hit with a hepatitis A outbreak in 2003
Chi-Chis was a Mexican-style restaurant chain that operated in the United States, Canada, Belgium, Germany, and Austria. The chain was founded by restaurateur Marno McDermott, whose wife's nickname was "Chi Chi".
In 2003, the company filed for Chapter 11 bankruptcy and was hit with the largest hepatitis A outbreak in American history. The outbreak was traced back to green onions at the Chi-Chi's at Beaver Valley Mall near Monaca, Pennsylvania, about 30 miles (48 km) northwest of Pittsburgh. Over 650 people became sick, and at least four died. The restaurant voluntarily closed on November 2, 2003, but not before high school students contracted the disease and passed it on to others.
The hepatitis A outbreak at Chi-Chi's is considered one of the most infamous food safety incidents in history. It led to changes in the response and regulatory frameworks surrounding food safety. For example, following the outbreak, the Centers for Disease Control recommended that all children receive the hepatitis A vaccine, which was previously only used in limited cases in high-risk populations.
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Frequently asked questions
Chi-Chi's uses a variety of cheeses in their dishes, including Monterey Jack, Cheddar, Mozzarella, and Pepper Jack Cheese.
Chi-Chi's branded food products, including cheeses, are usually found in major supermarkets and discount stores.
Chi-Chi's restaurants have closed down in the United States and Canada. However, there is one remaining Chi-Chi's restaurant in Vienna, Austria, which is a remnant of what used to be a larger chain.
Yes! Chi-Chi's is planning a comeback in 2025, with new restaurants expected to open in Minnesota and St. Louis Park.
