The company recently announced its intention to return to the market after nearly 20 years
Chi-Chi’s recently announced its intentions to return this year, about 20 years after the last restaurant closed. As part of that comeback plan, the founder’s son Michael McDermott has launched a Regulation Crowdfunding initiative with investment platform StartEngine. The goal is to offer the public a stake in the brand’s relaunch.
In December, McDermott announced an agreement with Hormel Foods to bring the Chi-Chi’s restaurants back through a new company called Chi-Chi’s Restaurants LLC. Hormel owns Chi-Chi’s trademarks for its retail products, including tortilla chips and salsa. Now, his goal is to raise $3.5 million with a minimum investment of $250 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 in a statement. “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 initiative may be used for the chain’s planned expansion, subject to business needs and discretion. The first restaurant is scheduled to be opened in Minnesota this year through a conversion of a former Rojo Mexican Grill in St. Louis Park. 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.
StartEngine was founded in 2015 by Howard Marks with the mission of helping entrepreneurs and allowing people access to private investment opportunities.
Contact Alicia Kelso at [email protected]
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