(NEXSTAR) — Two decades after shutting its doors, the Mexican restaurant chain Chi-Chi’s is marching back — and giving you a chance to have an equity stake in the brand.
In early December, Michael McDermott, the son of Chi-Chi’s co-founder Marno McDermott, confirmed in a press release that he planned to honor his family’s legacy with the return of the restaurant. He founded CHI-CHI’S Restaurants, LLC, which has reached an agreement with Hormel Foods to revive the chain.
At the time, Chi-Chi’s would only confirm that restaurants would open in 2025 without any specifics. But now, we finally know where the Chi-Chi’s revival will begin: at its roots.
The company confirmed Tuesday that a Rojo Mexican Grill — also owned by McDermott — in St. Louis Park, located just outside of Minneapolis, will be converted into a Chi-Chi’s. The first-ever Chi-Chi’s, opened by McDermott’s father and former Green Bay Packers wide receiver Max McGee in 1975, was located in the Minneapolis area.
A second location in Minnesota, also a conversion of a Rojo Mexican Grill, is in the works, the company has confirmed.
Want an ownership stake in Chi-Chi’s?
According to Tuesday’s press release, Michael McDermott is inviting others to take up an ownership stake in Chi-Chi’s.
With a goal of raising $3.5 million, Chi-Chi’s is using StartEngine, an “alternative platform that allows everyday investors to invest in startups, collectibles, and other alternative assets,” in order for “investors of all backgrounds to have a seat at the table.”
“The enthusiastic response to our announcement about bringing back CHI-CHI’S was overwhelming — greater than I ever anticipated,” McDermott said in Tuesday’s release. “Millions of former customers and thousands of former employees were buzzing about it on social media, sharing fond memories of their experiences. I want to engage with the Chi-Chi’s community as much as possible with the comeback. This opportunity is open to eligible investors in accordance with applicable securities laws, and anyone who contributes is playing a pivotal role in the future of Chi-Chi’s.”
A minimum investment of $250 is required in exchange for equity in Chi-Chi’s. The company says funds raised may be used to help expand its restaurant footprint, adding that investors “will be part of an early-stage expansion strategy with both company-owned and franchised opportunities” in the Midwest and East Coast.
As of Tuesday morning, Chi-Chi’s has a valuation over $10 million on StartEngine. Marno McDermott is listed as an advisor for the company alongside Jack Butorac, the current chairman and co-CEO for Marco’s Pizza, and Kerry Kramp, Sr., the former vice president of food and beverage for Chi-Chi’s.
The maximum number of shares, currently valued at $1.54 each, being offered is over 2.2 million.
What happened to the original Chi-Chi’s chain?
Chi-Chi’s was started in the 1970s by McDermott’s father and McGee. The brand, and its more than 200 locations, would change ownership several times through the next decades, culminating with a bankruptcy filing in late 2003.
A short time later, hepatitis A cases reported in the Pittsburgh area were traced back to green onions served at a Chi-Chi’s in a nearby Monaca, Pennsylvania, mall. More than 600 people were sickened and four died, according to reports at the time, and roughly half of those who became ill sought damages against Chi-Chi’s.
The last Chi-Chi’s closed its doors in 2004. Hormel Foods bought the Chi-Chi’s trademark afterward and has produced Mexican foods under the brand. Products produced under the Chi-Chi’s name will still be available, the company confirmed.
