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Chi-Chi's
Date EstablishedLocation1975Richfield, Minnesota
Description
The company was founded by Marno McDermott (his wife's nickname was "Chi Chi") and former football player Max McGee. From 1977 to 1986, the franchise CEO was former KFC executive Shelly Frank. After he was put in charge the headquarters to his hometown of Louisville and in March 1995, the franchise increased stores to 210. November 2003 was a spiral downward as after filing for Chapter 11 bankruptcy, Chi-Chi's suffered the largest hepatitis A outbreak in U.S. history. This included four deaths and 660 falling ill in the Pittsburgh area, who caught the disease from the original victims. In August 2004, Outback Steakhouse bid $42.5 million for the rights to buy its choice of Chi-Chi's 76 properties, but did not purchase the Chi-Chi's name, operations, or recipes. On the weekend of September 18, 2004, Chi-Chi's closed all 65 of its remaining restaurants. Outback eventually sold all the properties to Kimco Realty Corporation in New Hyde Park, New York.