Chi-Chi's reopened on October 6 last year in St. Louis Park, Minnesota, ending a 20-year absence for a brand that once operated more than 200 U.S. units at its mid-1980s and 1990s peak.

The single corporate store is owned by Michael McDermott, son of co-founder Marno McDermott, who launched the concept in 1975 alongside former Green Bay Packers player Max McGee. The chain went public in 1979, collapsed into bankruptcy in the early 2000s, and all locations had closed by 2004. McDermott, who also founded Kona Grill, acquired the brand rights and relaunched the concept under company ownership.

How has the menu shifted in year one?

The St. Louis Park kitchen has spent twelve months splitting output between legacy recipes and modernized items. McDermott brought back the Chimichanga, Mexican Pizza, Corn Cake, and Twice-Grilled BBQ Burrito while adding Birria Tacos and Short Rib Tacos to track current Mexican-casual demand.

To mark the anniversary, the restaurant will roll prices back to 1976 levels for one day:

• $3.25 chimichangas
• $1.25 house margaritas

"Our intention was to bring Chi-Chi's forward, not simply bring it back," McDermott said. "We wanted longtime fans to recognize and reconnect with the brand they remember, while also creating a restaurant that feels relevant today."

What does the $10-$15 lunch rollout do to the check?

The team engineered a smaller-portion daypart priced from $10 to $15 after guest feedback pointed to smaller plates and lower price points at lunch. The flagship example is the Mini-Chimi, built on an 8-inch tortilla versus the 10-inch tortilla used on the dinner chimichanga.

That portion shift dropped the chimichanga price from $17 to $14, an 18% reduction designed to defend food cost while widening appeal. Returning items in the lunch lineup include the Twice-Grilled BBQ Burrito, Seafood Nachos, and Margarita Chicken Tacos.

"One of the most common requests was for smaller portions and price points that better fit lunchtime dining," McDermott said. The launch pairs scratch preparation with value-engineered pricing, reflecting how guests actually eat at noon versus evening.

Where does the next unit stand?

McDermott said he is in active discussions with developers across the Midwest and East Coast but has not signed leases. The plan calls for additional corporate stores first, ahead of a formal franchise push.

"We're focused on securing the financing needed to support our growth plans," McDermott said. "Once that is in place, we'll begin making longer-term commitments."

That sequencing keeps the proof-of-concept inside the company. Until McDermott validates check averages, food costs, and labor percentages at scale, no franchise disclosure document follows.

What has to work on the unit economics?

The St. Louis Park store functions as the operating model for the revival. The lunch menu's 8-inch-versus-10-inch portion engineering signals a deliberate margin defense: smaller tortilla, lower ingredient cost, broader ticket reach. The corporate-store-first strategy limits franchise royalty risk while McDermott stress-tests the daypart and pricing tiers.

The immediate forward catalyst is the anniversary price rollback, followed by a second corporate opening once financing closes and the unit model is verified at scale.