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CHI-CHI’s Restaurants Set to Make a Comeback Nearly 20 Years After Closing Its Last Location

Nearly two decades after the last CHI-CHI’S™ restaurant closed its doors, the beloved Mexican restaurant chain is set for a revival. Thanks to a new agreement with Hormel Foods, which owns the CHI-CHI’S™ trademarks, Michael McDermott, son of the chain’s founder, has secured the rights to use the CHI-CHI’S™ name for physical restaurant locations. The first of these new restaurants is expected to open in 2025. While specific locations have yet to be revealed, the chain previously had two local spots in Montgomery County.

CHI-CHI’S had a location in Rockville’s Wintergreen Plaza, which later transformed into Broadway/Ted’s 355 Diner and is now home to Habit Burger and Jersey Mike’s. The chain also had a Gaithersburg location in Lakeforest Mall, which remained largely intact for nearly two decades after its closure, sealed off but never replaced (video below).

Founded in 1975 by restaurateur Marno McDermott and former Green Bay Packers player Max McGee, CHI-CHI’S rapidly expanded throughout the late 20th century, growing to over 200 locations nationwide. However, a hepatitis outbreak and a series of ownership changes led to the chain’s closure in 2004.

Michael McDermott, who has worked in the restaurant industry with brands like Kona Grill and Rojo Mexican Grill, is committed to honoring his family’s legacy by blending the classic CHI-CHI’S™ experience with modern elements. “I still have fond memories of growing up in the CHI-CHI’S™ restaurants that my father built, instilling in me the passion and determination to pursue my own career in the restaurant industry,” said McDermott, founder of CHI-CHI’S™ Restaurants, LLC, the company formed to revive the brand.

“We have seen the impact our restaurant has had on individuals and families across the country and believe there is a strong opportunity to bring the brand back in a way that resonates with today’s consumer – an updated dining experience with the same great taste and Mexican flavor.”

We’ll provide updates on locations as soon as we have them, especially if they are nearby.

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