The restaurant industry has been hammered by closures and bankruptcies over the past few years.
But one iconic chain just pulled off the most unexpected comeback in decades.
And the son of one of the Chi-Chi’s co-founders offered up a prayer that now has fried ice cream fans jumping for joy.
A beloved chain returns after 20 years in the wilderness
Michael McDermott never planned to resurrect one of America’s most beloved restaurant chains.
The successful restaurateur had built Kona Grill and Rojo Mexican Grill into thriving businesses when something unexpected happened during his morning prayers.
McDermott told Fox News Digital that he literally got on his knees and asked God for direction about his next business venture.¹
That divine inspiration led to Chi-Chi’s Mexican restaurant celebrating its grand opening on Monday, October 6, in St. Louis Park, Minnesota – the first new Chi-Chi’s location to open in more than two decades.
For millions of Americans, Chi-Chi’s wasn’t just a restaurant.
It was where families celebrated birthdays, where couples had their first dates, and where an entire generation got their first taste of Mexican food.
The chain disappeared from American dining in 2004, leaving behind a generation of customers who never stopped missing those signature dishes and festive atmosphere.
The son of a founder brings back the magic
McDermott isn’t just any restaurateur trying to capitalize on nostalgia.
His father was one of Chi-Chi’s original co-founders, which gave him something money can’t buy – the actual recipes that made Chi-Chi’s legendary.
McDermott explained to Fox News Digital that the company has preserved all the original recipes and plans to bring back many customer favorites.²
The menu will feature beloved items like the chimichanga, deep-fried ice cream, seafood enchiladas, and the signature enchilada sauce that made Chi-Chi’s famous.
But McDermott also understands that America’s palate has evolved since 2004.
He noted that when Chi-Chi’s first launched in the Midwest and East Coast, it introduced Mexican food to many Americans for the first time.³
Now that consumers are more educated about Mexican cuisine, McDermott wants the menu to reflect both classic Chi-Chi’s items and newer dishes the chain never offered before.
With his father’s blessing, McDermott secured the naming rights from Hormel Foods, which owns the Chi-Chi’s trademark.
The timing couldn’t be better for a restaurant chain that specialized in creating memorable experiences.
Look, here’s what makes this comeback different from all the other nostalgia plays
You know what this really is?
This is about something the restaurant industry has completely lost – the ability to create genuine emotional connections with customers.
McDermott has been overwhelmed by the response from former customers sharing their Chi-Chi’s memories.
He told Fox News Digital that the restaurant created lasting experiences for families and communities.⁴
The atmosphere was lively with Mexican music in the background, and people celebrated major life events there.
McDermott said he’s received countless handwritten letters from people sharing how Chi-Chi’s played a role in their lives – from first dates to first jobs to getting through college.⁵
That’s not marketing spin – that’s the kind of customer loyalty that modern restaurant chains would kill for.
While other chains focus on delivery apps and ghost kitchens, Chi-Chi’s built its reputation on being a destination where families actually wanted to spend time together.
McDermott admitted that upholding the brand’s legacy has been the biggest challenge because he didn’t initially realize the profound impact Chi-Chi’s had on people’s lives.⁶
The smart money is betting on Midwest expansion
McDermott isn’t just throwing darts at a map when it comes to expansion plans.
He’s following the same playbook that made Chi-Chi’s successful the first time around.
McDermott told Fox News Digital that expansion will likely follow the same geographic path Chi-Chi’s took originally, focusing on the Midwest and East Coast markets.⁷
Real estate developers and potential franchisees are already reaching out to McDermott about bringing Chi-Chi’s to their markets.
For folks who remember when restaurants were about more than just fast food and overpriced drinks, Chi-Chi’s represents something that’s been missing from American dining.
Here’s what McDermott gets that most restaurant executives don’t – people don’t just want good food, they want experiences that create lasting memories.
The restaurant industry has spent the last 20 years chasing efficiency and profit margins while forgetting that the most successful restaurants are the ones that become part of people’s lives.
Chi-Chi’s didn’t just serve Mexican food – it introduced an entire generation of Americans to Mexican cuisine while creating the kind of family dining experiences that built customer loyalty for decades.
If McDermott can capture even half of that original magic, he’ll have something most restaurant chains can only dream about – customers who become evangelists for the brand.
The grand opening in Minnesota will show whether there’s still room in America for restaurants that prioritize experience over efficiency.
For millions of Americans who grew up celebrating special occasions at Chi-Chi’s, the answer is already clear.
¹ Peter Burke, "Chi-Chi’s iconic Mexican chain returning with chimichangas, deep-fried ice cream," Fox News, October 1, 2025.
² Ibid.
³ Ibid.
⁴ Ibid.
⁵ Ibid.
⁶ Ibid.
⁷ Ibid.
