Taking a nostalgic trip to the newly opened Chi-Chi’s

Chi-Chi’s opened officially on Monday in a Minneapolis suburb. It’s been 20 years. | Photos by Jonathan Maze.

The first Chi-Chi’s in 20 years opened officially on Monday in a Minneapolis suburb, in a mixed-use development not far from a Yard House, a grocery store and the headquarters of Taco John’s.

We decided to quietly visit the opening, which went about as you’d expect from a new restaurant, with generally excellent service mixed with a hiccup or two. 

Reservations were booked, but there was a crowd of people hoping for a seat, and a bar full of locals. Workers were running around everywhere. It would take us 20 minutes to get served, but once we did, everything was spectacular. And that 20 minutes gave me ample time to do some people watching. 

We ordered a Red Chili Chimichanga and Fried Ice Cream, both of which are Chi-Chi’s favorites. The ice cream in particular was excellent. But the menu itself was broad, featuring a wide selection of items including tacos, enchiladas, a Manchego Burger and even a chorizo-and-beef meatloaf. 

We would say the Chimichanga and ice cream were as we ordered, but in all honesty, it’s been so long since we’ve been to Chi-Chi’s that the one thing we remember from those years was the chips.  

The Red Chili Chimichangas. 

Chi-Chi’s was the first restaurant we recall that served bottomless tortilla chips and salsa. All the chips we can eat? And they just keep coming? It was glorious. And in those days, we didn’t have to concern ourselves with the impact that bottomless bowl of fried goodness would have on our body fat index. The modern version of Chi-Chi’s delivered on this particular promise. Everything else was a bonus as far as my own nostalgia was concerned.

Chi-Chi’s is getting a lot of attention for a brand that hasn’t been around since the first George W. Bush term. The chain was a victim of growing competition and an unfortunately timed hepatitis outbreak. Its reopening this week is the latest in a series of efforts by entrepreneurs to take advantage of social media-driven nostalgia for menu items and brands of yesteryear.

About 17 miles to the south of the Chi-Chi’s restaurant is the first Steak & Ale in 16 years. Others are taking a shot on nostalgic restaurant brands like Ground Round, Hot ‘N Now and Sweet Tomatoes. Consumers have pushed brands to bring back canceled menu items like the Mexican Pizza or the Snack Wrap—never mind the potential impact those items have on service times. 

McDonald’s in particular has played this nostalgia tune like a classically trained musician, with adult Happy Meals and marketing campaigns highlighting consumers’ love for the brand they remember. 

It makes sense, then, for someone such as Michael McDermott to take a shot and open Chi-Chi’s. McDermott is the son of the chain’s founder, Marno McDermott. He opened the location in a closed location of his own concept, Rojo Mexican Grill. 

But the world today is vastly different from the one Chi-Chi’s left 20 years ago, in ways that serve as both an advantage and disadvantage.

The Fried Ice Cream.

The restaurant itself received a big boost from its comeback marketing, providing a level of curiosity-based interest that most new openings can only dream of. The reason so many companies are opening these defunct concepts or releasing these menu items is because it all works. Want instant sales? Go find an online petition demanding your brand bring back some defunct menu item and then bring it back. 

Consumers may be cutting back on their dining, but those with a bit of money will clearly spend. And many of them want to visit restaurants again and be served. That has fueled strong sales at Chili’s and improving results at a broad range of casual-dining brands. 

At the same time, full-service Mexican chains haven’t exactly thrived. Many of Chi-Chi’s full-service Mexican contemporaries, like Don Pablo’s, Chevy’s Fresh Mex, El Torito, Acapulco, On the Border and Abuelo’s, have either filed for bankruptcy or completely disappeared. Total full-service Mexican chain sales last year was flat, according to Technomic data. 

While Chipotle Mexican Grill has had a tough year in 2025, at least so far, the Mexican fast-casual segment is thriving. And there are a lot of places in the U.S. where consumers can get Mexican food, in whatever format they want. 

When Chi-Chi’s was popular, Mexican was still an up-and-coming segment in the industry in much of the U.S. These days you can find such restaurants everywhere. We have a three of them in my nondescript suburb, all of which are excellent. 

Chi-Chi’s has plans for a second location in Minnesota, and then it plans to franchise the concept. Those locations will be able to get by with nostalgia for a while, but at some point it will have to live off the quality of that service and that ice cream. Because this business is a lot harder than it was two decades ago.