Nearly 20 years after the last CHI-CHI’S restaurant closed, the beloved Mexican chain is set to make a comeback. In December, it was announced that Michael McDermott, son of CHI-CHI’S founder, had secured the rights to use the CHI-CHI’S name on physical restaurant locations through an agreement with Hormel Foods, which owns the brand’s trademarks.
Previously, the nationwide chain had two locations in Montgomery County. The first restaurant is set to open in Minnesota, where a Rojo Mexican Grill in St. Louis Park will be converted into a CHI-CHI’S™ location. The expansion strategy includes both company-owned and franchised locations, with plans to grow across the Midwest and East Coast.
As part of the relaunch, McDermott is leading a crowdfunding campaign, allowing investors to own a stake in the brand’s revival. The campaign aims to raise $3.5 million, with a minimum investment of $250.
Per the news release: “As CHI-CHI’S, the iconic Mexican chain restaurant, gears up for a 2025 comeback, Michael McDermott, the founder’s son who has the restaurant rights to CHI-CHI’S, announced his plans to offer the public a stake in the brand’s relaunch through Regulation Crowdfunding (Reg CF). Utilizing StartEngine, a leading alternative platform that allows everyday investors to invest in startups, collectibles, and other alternative assets, CHI-CHI’S is inviting investors of all backgrounds to have a seat at the table.
This latest news follows last year’s announcement of the return of CHI-CHI’S. In his decision to pursue crowdfunding, McDermott aims to allow the public to grow alongside CHI-CHI’S from the ground floor. CHI-CHI’S is looking to raise $3.5 million with a minimum investment of $250.00 in exchange for equity in the brand.*
“The enthusiastic response to our announcement about bringing back CHI-CHI’S was overwhelming – greater than I ever anticipated,” McDermott said. “Millions of former customers and thousands of former employees were buzzing about it on social media, sharing fond memories of their experiences. I want to engage with the CHI-CHI’S community as much as possible with the comeback. This opportunity is open to eligible investors in accordance with applicable securities laws, and anyone who contributes is playing a pivotal role in the future of CHI-CHI’S.”
Funds raised through this offering may be used for CHI-CHI’S highly anticipated planned expansion, subject to business needs and discretion. The first restaurant is scheduled to be opened in Minnesota this year, converting Rojo Mexican Grill in St. Louis Park to CHI-CHI’S. Investors will be part of an early-stage expansion strategy with both company-owned and franchised opportunities, as CHI-CHI’S plans to continue its relaunch within the Midwest and East Coast.
To learn more about the opportunity, please visit https://www.startengine.com/offering/chi-chis-restaurants.”