Just twenty years after filing for bankruptcy, a Mexican restaurant franchise that formerly had 200 outlets across the United States will shortly reopen its doors.

In 2004, after decades of the Chi-Chi’s Mexican Restaurant brand being owned by different people, the last Chi-Chi’s restaurant in the United States closed its doors. The chain’s fate was solidified when a hepatitis A outbreak in Pittsburgh was linked to a Chi-Chi’s green onion source that was located nearby. At that time, the company was already on the verge of filing for bankruptcy administration.

At a price somewhat higher than forty million dollars, Outback Steakhouse went on to acquire the trademark for the name. Some of the locations in Germany and Belgium continued to function until the year 2022, while another one in Vienna continued to function until the year 2024 (Google has since said that the location is now permanently shuttered).

Additionally, the brand’s survival was ensured by the availability of pre-packaged commodities in grocery stores, such as salsa and tortillas, which are still manufactured.

According to a press release, the Hormel Foods Corporation made the announcement on December 3 that it had achieved an arrangement with Michael McDermott, the son of Chi-Chi’s founder Marno McDermott, that would allow him to use the Chi-Chi’s trademark on a series of new restaurants that are scheduled to debut in the year 2025.

McDermott, who is the founder of Kona Grill and Rojo Mexican Grill, stated, “I still have fond memories of growing up in the Chi-Chi’s restaurants that my father built throughout their time. These restaurants instilled in me the passion and determination to pursue my own career in the restaurant industry.”

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