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International Business Times
International Business Times
Business
Mark Moore

Mexican Restaurant Chain Chi-Chi's To Return 20 Years After Deadly Hepatitis Outbreak Sunk Brand

Michael McDermott, son of one of the original founders of Chi-Chi's, will open new locations next year. (Credit: Chi-Chi's)

Two decades after closing its last location after a series of ownership changes and a hepatitis A outbreak, Chi-Chi's is planning a comeback with a familiar name at the helm.

In a deal with Hormel Foods, which owns Chi-Chi's trademarks, Michael McDermott, the son of one of the Mexican restaurant chain's founders, will be allowed to use the name to open new locations next year, the company said.

Marno McDermott and former Green Bay Packers great Max McGee opened the chain in 1975 and it soon expanded to more than 200 locations.

Chi-Chi's closed in 2004 following ownership changes that resulted in bankruptcy and a hepatitis A outbreak in Pittsburgh that led to four deaths and a flurry of lawsuits.

"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," Michael McDermott said.

"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," he added.

McDermott told Fox News Digital that the first two restaurants will open next year in Minnesota, where the original location opened.

"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 told the outlet.

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