For Michael McDermott, the resurgence of Chi-Chi’s is personal. As the son of co-founder Marno McDermott, he grew up running around in the restaurants before going on to build concepts like Kona Grill.
Quick history lesson: His father co-founded Chi-Chi’s alongside former Green Bay Packers player Max McGee in 1975. They took the brand public just four years later, and Chi-Chi’s grew to more than 200 locations across the country at its peak in the mid-1980s and 1990s. But the brand collapsed into bankruptcy in the early 2000s, and all locations closed by 2004.
Then, last year on October 6, Chi-Chi’s made its triumphant return with the opening of its first new location in Minneapolis suburb St. Louis Park, Minnesota.
But reviving a legacy brand with this much history comes with a delicate balancing act. Longtime fans show up eager for the nostalgia of chips and salsa, Mexican pizza, and chimichangas, but sustainable growth requires winning over a new generation that never actually set foot in an OG location.
Over the past year, McDermott’s commitment to listening to guests has shaped choices like introducing modernized menu items like birria and short rib tacos to rolling out a value-engineered lunch menu with smaller portions and accessible price points.
Heading into its one-year mark, Chi-Chi’s expanded its offerings with a $10 to $15 lunch lineup and the return of fan favorites like the Twice Grilled BBQ Burrito, Seafood Nachos, and Margarita Chicken Tacos. The rollout showcases McDermott’s strategy of pairing scratch-made nostalgia with modern, accessible everyday value.
To mark today’s milestone, they’re even rolling back prices for one day to 1976 levels, serving up $3.25 chimichangas and $1.25 house margaritas.
And more growth is on the way. McDermott notes he’s in talks with developers along the East Coast and throughout the Midwest, though he’ll likely open a few more strategic corporate stores to prove out this next model of Chi-Chi’s before officially announcing any franchise deals.
I sat down with McDermott to hear how he’s leading the company’s revival with a focus on honoring the legacy his father built while introducing the beloved brand to a new generation of guests.
Why was now the right time for Chi-Chi’s to make its comeback?
I believe in divine timing. I’ve been creating restaurant concepts for more than 25 years and bringing Chi-Chi’s back was never on my radar. A couple of years ago, I was considering transforming one of the concepts we owned because I felt it had run its course. I had a few ideas, but nothing seemed quite right. Then one morning during meditation, the thought came to me: bring Chi-Chi’s back. I ran the idea by a few people, and they thought it was a great one. The rest is history.
What made the idea especially meaningful is that my connection to Chi-Chi’s is deeply personal. I was around the company when I was nine or ten years old, before my family moved to Arizona. While I don’t remember every detail, I certainly remember the chips and salsa. More importantly, I understand the responsibility that comes with continuing what my father started. Bringing Chi-Chi’s back felt like the right opportunity to honor my family while introducing the brand to a new generation.
How are you balancing nostalgia with attracting new customers?
Our intention was to bring Chi-Chi’s forward, not simply bring it back. We wanted longtime fans to recognize and reconnect with the brand they remember, while also creating a restaurant that feels relevant today. The restaurant incorporates familiar design elements such as hanging plants and Mexican tile, but the overall atmosphere reflects modern design and guest expectations.
The menu follows that same philosophy. We’ve brought back several original Chi-Chi’s favorites, including the Chimichanga, Mexican Pizza, Corn Cake, and Twice-Grilled BBQ Burrito, while also introducing items that reflect today’s Mexican dining trends, such as Birria Tacos and Short Rib Tacos. For me, preserving the spirit of Chi-Chi’s means more than recreating the past. It means honoring my father’s legacy and my mother’s name by building restaurants centered on great food, genuine hospitality, and outstanding service for both longtime fans and first-time guests.
What inspired the new lunch menu?
We had planned to introduce a lunch menu for some time, but we wanted to first gather feedback from our guests about what they wanted to see. One of the most common requests was for smaller portions and price points that better fit lunchtime dining.
For example, our chicken Chimichanga is made with a 10-inch tortilla and can be difficult for some guests to finish. For lunch, we introduced a Mini-Chimi made with an 8-inch tortilla. It’s still a generous portion, but it allows us to bring the price down from $17 to $14. Throughout the process, our goal was to stay true to the quality and value guests expect from Chi-Chi’s while adapting to how people dine today, which is the same philosophy guiding the brand’s overall evolution.
What’s next for Chi-Chi’s expansion?
We’ve had a number of developers in the Midwest and on the East Coast reach out about bringing Chi-Chi’s to their projects. I’ve visited several of them, but we haven’t signed any leases yet. Right now, we’re focused on securing the financing needed to support our growth plans. Once that is in place, we’ll begin making longer-term commitments.
I’m excited about the opportunity ahead because I believe Chi-Chi’s still has tremendous potential. My goal is to build on the foundation my father created, honor my family’s legacy, and introduce Chi-Chi’s to communities across the country. If we remain focused on quality, hospitality, and the values that made the brand special in the first place, I believe we can create a meaningful future for Chi-Chi’s.
