It was one of the most popular restaurant chains during the 1980s, but by the early 2000s, Chi-Chi’s Mexican Restaurant was no more.
Fast-forward to 2025, and Chi-Chi’s is looking to relaunch in Minnesota, the state where the first restaurant opened in 1975, and they are using a very 2025 funding method to make it happen.
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Chi-Chi’s Vision for St. Louis Park
Michael McDermott, the founder’s son, has the restaurant rights to the Chi-Chi’s brand and has decided to relaunch the restaurant in St. Louis Park this year, and you could be a part-owner in the relaunch.
Using a funding method called Regulation Crowdfunding (Reg CF), he will be using the crowdfunding platform StartEngine in an effort to raise $3.5 million. Investors can invest a minimum of $250 “in exchange for equity in the brand.”
Chi-Chi’s / StartEngine
Expansion Plans Across Minnesota and Beyond
Chi-Chi’s says it plans to use the money for an additional location in Minnesota, with plans to develop a franchise program to expand the brand in the Midwest and the East Coast.
A Look Back at Chi-Chi’s Rise and Fall
At its peak, Chi-Chi’s had over 200 locations around the United States, but with growing competition, bad expansion decisions, and a hepatitis A outbreak at a Pittsburgh location that sickened over 660 people and killed four, Chi-Chi’s closed its final locations in 2004. The chain’s legacy, however, still lingers in the memories of Minnesotans who frequented its original Richfield spot.
Plate of enchiladas dish in Texas.
McDermott’s Optimism for the Future
“The enthusiastic response to our announcement about bringing back Chi-Chi’s was overwhelming – greater than I ever anticipated,” said McDermott. With roots in Minnesota and a fresh start in St. Louis Park, Chi-Chi’s aims to reclaim its place in the hearts (and stomachs) of locals and newcomers alike in 2025.
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