Chi-Chi's
Dead1975–2004
| Industry | Restaurants |
| Headquarters | Louisville, KY |
| Founded | 1975 |
| Died | 2004 |
| Peak employees | 14,000 |
| Peak revenue | $500M (estimated, 1990s) |
| Cause of death | Black swan |
Chi-Chi's was a Mexican restaurant chain that defined casual Tex-Mex dining for suburban America in the 1980s and '90s. At its peak, the chain had over 200 locations across the US, known for fried ice cream, chimichanga platters, and birthday sombreros.
In November 2003, the Chi-Chi's in Beaver Valley, Pennsylvania served green onions contaminated with hepatitis A. It became the largest hepatitis A outbreak in US history: over 660 people infected, at least four dead. The restaurant industry's worst nightmare, realized at a single location.
The chain was already struggling financially under parent company Outback Steakhouse. The outbreak was the killing blow. Chi-Chi's closed all remaining US locations in 2004. The brand survives in grocery stores as a line of salsa and tortilla chips, owned by Hormel Foods. The restaurants are gone. The brand lives on a jar.
Timeline
Former Green Bay Packers player Max McGee opens first Chi-Chi's in Minneapolis
Expands to over 200 locations across the US
Hepatitis A outbreak at Beaver Valley, PA location; 660+ infected, 4+ dead
All remaining US restaurants close
Hormel Foods acquires brand for grocery products