The history of the Chi-Chi's restaurants in Ontario
Once a dependable staple of casual dining in Ontario across North America, Chi-Chi's Mexican restaurants were known for their cheesy Tex-Mex cuisine and signature dishes and drinks like seafood nachos, fried ice cream, and jumbo margaritas.
From its roots in the U.S. to its expansion into Canada and eventual closure in 2004, Chi-Chi's definitely made a lasting impression, especially in Ontario cities like Kitchener, Windsor, and across the GTA. Now, more than two decades after its downfall, the brand is set for a comeback under the leadership of the founder's son.
Chi-Chi's was founded in 1975 by restaurateur Marno McDermott and former Green Bay Packers player Max McGee. The restaurant's name came from McDermott's wife's nickname, "Chi Chi."
Photo: The Seattle Room Menu Collection.
From tacos and chimichangas to seafood enchiladas and taquitos, the menu quite literally offered something for everyone. Despite closing two decades ago, few diners have forgotten the chain's show-stopping Mexican "fried" ice cream, featuring French vanilla ice cream covered with crunchy cinnamon coating, fried, with your choice of toppings on a flaky flour tortilla.
From 1977 to 1986, the brand was helmed by Shelly Frank, a former KFC executive, who helped expand Chi-Chi's into a North American dining phenomenon. By 1995, there were approximately 210 locations, including several in Ontario.
The chain's combination platters, weekday lunch specials, and affordable (but still, massive) drinks made it a go-to for after-work gatherings, family dinners, and celebrations. The ultimate dinner combo in 1991, for instance, came with your choice of main, rice, refried beans, sweet corn cakes, and the famous fried ice cream for only $7.99.
Chi-Chi's menu in the 1980s. Source: Reddit.
Despite its success, the chain's trajectory took a drastic turn in the early 200s. On Oct. 8, 2003, Chi-Chi's filed for Chapter 11 bankruptcy. That same month, its flagship location in Richfield, Minnesota, was put up for sale, and things quickly went downhill from there.
Just one month after the bankruptcy filing, a hepatitis outbreak linked to green onions at a Chi-Chi's in Beaver Valley Mall near Monaca, Pennsylvania, sickened at least 660 people and resulted in four deaths. The onions had been served in the restaurant's complimentary salsa.
By July 2004, Chi-Chi's was facing hundreds of lawsuits, and only 65 restaurants remained. On the weekend of Sept. 18, 2004, all remaining Chi-Chi's restaurants closed their doors. Outback Steakhouse went on to purchase the brand for $40 million and repurposed the locations for other concepts like Bonefish Grill and Outback Steakhouse.
Despite the devastating closures, the Chi-Chi's name never exactly disappeared. Hormel Foods, which owns the trademark, continued to sell Chi-Chi's branded salsas, chips, and margarita mixes in grocery stores.
Photo: PJ McDonnell/Shutterstock.com
Last December, Hormel Foods announced that it would allow Michael McDermott, son of co-founder Marno McDermott, to revive the legendary brand.
"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," 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."
While McDermott has not yet disclosed how many locations will open or where, fans across Ontario and beyond are hopeful that Chi-Chi's might once again serve its signature dishes north of the border.
