Who Owns Chi-Chi's?
Chi-Chi's is a Mexican food brand owned by Hormel Foods, which controls the trademark and grocery product line. The restaurant chain, which closed in 2004, was revived in 2025 under a new agreement with Hormel, allowing founder's son Michael McDermott to reopen Chi-Chi's restaurants starting in October 2025.
Parent Company
Hormel Foods
Founded
1976
Status
Publicly Traded
Headquarters
Minnesota, USA (restaurant revival)
Who Owns Chi-Chi's?
- Parent Company: Hormel Foods
- Ownership Type: Brand license
- Company Type: Publicly Traded
- Stock Ticker: NYSE: HRL
| Brand | Parent Company | Ownership Type |
|---|---|---|
| Chi-Chi's | Hormel Foods | Brand license |
History of Chi-Chi's
- Founded: 1976
- Founders: Marno McDermott, Max Marno
Chi-Chi's was founded in 1976 by Marno McDermott and Max Marno in Richfield, Minnesota. The founders established the restaurant as a Mexican casual dining concept featuring enchiladas, tacos, and other Mexican-inspired dishes. The concept proved successful, and Chi-Chi's expanded rapidly throughout the United States and Canada.
Throughout the 1980s and 1990s, Chi-Chi's became one of the largest Mexican casual dining chains in North America, with hundreds of locations. The company went public and expanded its operations significantly. In 1987, the original restaurant owners sold the rights to use the Chi-Chi's name on grocery products to a separate company, creating a dual brand structure with both restaurants and packaged food products.
In 1999, Outback Steakhouse acquired Chi-Chi's restaurants in a $40 million deal. Under Outback's ownership, the restaurant chain declined, and Outback eventually closed all remaining Chi-Chi's locations by 2004. However, the Chi-Chi's grocery brand continued to operate under different ownership. In 2024, Hormel Foods acquired ownership of the Chi-Chi's trademark.
In December 2024, Hormel announced an agreement with Michael McDermott allowing him to reopen Chi-Chi's restaurants using the Hormel-owned trademark. The first revived Chi-Chi's restaurant opened in Minnesota in October 2025, marking the brand's return to the restaurant market after a 21-year absence.
About Hormel Foods
Hormel Foods operates through four main business segments: Retail, Foodservice, Jennie-O Turkey Store, and International. The Retail segment sells products through grocery stores and other retail channels, while the Foodservice segment serves restaurants, hotels, and other foodservice establishments.
The Jennie-O Turkey Store segment operates retail stores and direct-to-consumer channels focused on turkey products, while the International segment manages the company's operations outside the United States. This diversified business model provides Hormel with multiple revenue streams and market channels.
Hormel's product portfolio includes iconic brands that have become household names in American households. SPAM remains the company's most famous product, while other brands like Skippy peanut butter, Jennie-O turkey products, and Planters nuts have strong market positions in their respective categories.
- Founded: 1891
- Headquarters: Austin, Minnesota, USA
- Company Type: Publicly Traded
- Stock: NYSE: HRL
Where Is Chi-Chi's Made / Based?
- Headquarters: Minnesota, USA (restaurant revival)
- Manufacturing / Operations: United States, Multiple countries (grocery products)
Chi-Chi's Ownership: Pros & Cons
Advantages
- +Hormel's brand ownership ensures trademark protection and legal rights
- +Established grocery product brand with consumer recognition
- +Founder's family involvement in restaurant revival
- +Access to Hormel's distribution and operational expertise
- +Strong brand heritage and nostalgic consumer appeal
- +Dual revenue streams from grocery and restaurant operations
Considerations
- -Restaurant revival faces competition from established Mexican casual dining chains
- -Consumer preferences may have shifted since original closure in 2004
- -Dependence on franchisee quality for restaurant expansion
- -Hormel's strategic priorities may affect brand support
- -Market saturation in casual Mexican dining segment
- -Need to rebuild customer base after 21-year absence
- -Operational challenges in restaurant revival execution
Frequently Asked Questions About Chi-Chi's
Competitors to Chi-Chi's
No direct competitors found in the same category. This could be because Chi-Chi'soperates in a unique market segment or we're still building our competitor database.
Hormel Foods Stock Information
Jobs at Hormel Foods
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