Chi-Chi's Mexican restaurants to return after 20-year absence

More than two decades after closing its last location, a beloved Mexican restaurant chain is making a comeback.

Chi-Chi's, which has been out of business since 2004, is returning in 2025, it was announced this week. 

Hormel Foods, which owns the Chi-Chi's trademark, said it reached an agreement with Michael McDermott, the son of one of the original Chi-Chi's founders, allowing him to use the name to reopen the restaurant chain next year.

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"I still have fond memories of growing up in the Chi-Chi's restaurants that my father built throughout their time, instilling in me the passion and determination to pursue my own career in the restaurant industry," McDermott said in a release announcing the chain's return.

McDermott revealed to Fox News Digital that "the first two stores will be opened in Minnesota in 2025," although further specifics about the reopening were not provided. 

"Our goal is to explore the original development path Chi-Chi's took through both company and franchised opportunities within the Midwest and East Coast," he also said. 

Chi-Chi's was founded in 1975 by Marno McDermott and Green Bay Packers Hall of Fame player Max McGee. 

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After opening its first location in Minnesota in 1976, Chi-Chi's eventually expanded to more than 200 locations nationwide.

The chain, however, closed in 2004 after a hepatitis A outbreak at a Pittsburgh-area location. The U.S. Food and Drug Administration said the outbreak was traced to green onions in its salsa.

At least four people died and more than 600 people were sickened.

It was one of the largest hepatitis A outbreaks in U.S. history, prompting lawsuits, according to published reports.

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One month before the 2003 outbreak, Chi-Chi's filed for Chapter 11 bankruptcy protection. 

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By the time the lawsuits were settled in 2004, Chi-Chi's was out of business.

Now, Chi-Chi's is getting a second chance.

The younger McDermott is a restaurateur who founded Kona Grill and Rojo Mexican Grill.

Hormel Foods has continued to make Chi-Chi's salsa and other grocery store products since acquiring the rights in the 1980s.