Chi-Chi's, the Mexican restaurant chain that closed over 20 years ago, is planning a comeback through an agreement with Hormel Foods. Michael McDermott, the son of Chi-Chi's founder, has struck a deal with Hormel Foods to open new restaurants next year. This marks the first time new Chi-Chi's locations will open since the chain filed for bankruptcy protection in 2003.
The revival of the Chi-Chi's brand in the restaurant space represents a potential new revenue stream for Hormel Foods, which owns the brand. This strategic partnership could leverage the existing brand recognition of Chi-Chi's to re-enter the competitive foodservice market. The agreement aims to capitalize on consumer nostalgia and demand for Mexican cuisine.
This development highlights Hormel Foods' strategy to explore new avenues for its diverse brand portfolio. By partnering to re-establish the restaurant chain, Hormel could expand its market reach beyond packaged goods. The success of these new restaurants will be a key indicator of the brand's renewed potential.
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