Chi-Chi’s, the Mexican restaurant chain that shuttered all its locations in 2004 following bankruptcy and a Hepatitis A outbreak, is making a comeback. A single flagship site in St. Louis Park, Minnesota, is set to open this month, capitalising on millennial nostalgia for the 1990s. In its mid-1990s heyday, the chain operated 210 outlets across the United States.
“For anyone who's ever said, ‘I miss CHI-CHI's,’ this one's for you,” the company stated in a recent news release. The 2025 menu will feature classic items such as the original chimichanga and nachos grande, alongside new dishes like seafood enchiladas and a Manchego burger. The revival comes amid economic turbulence, with inflation, job insecurity, and tariff-related market fluctuations prompting consumers to cut back on dining out. Restaurant visits have fallen by 1 per cent year-on-year, and 57 per cent of Americans say they are dining out less than 12 months ago, according to surveys.
Millennials, aged 29 to 44, have experienced multiple economic shocks, including the 2008 financial crisis and the pandemic downturn, and are now driving a trend for revisiting affordable 1990s food brands. Chi-Chi’s is not alone: KFC has reintroduced potato wedges and Original Honey BBQ sauce, Taco Bell brought back the Double Decker Taco and Chili Cheese Burrito, and Chili’s revived its “Baby Back” jingle from the 1990s, leading to double-digit sales growth.
Experts attribute the trend to nostalgia as a coping mechanism. “Nostalgia can be part of the psychological immune system, where, when something negative or threatening occurs, it can actually activate nostalgia, which then helps you cope,” said Chelsea Reid, associate professor of psychology at the College of Charleston. Food nostalgia can arouse feelings of social connection and comfort. With 26 per cent of millennials reporting frequent loneliness in 2025, according to a poll, returning to a simpler time may be especially appealing.
Lindiwe Davis, culture strategist and founder of FutureState Collective Group, noted that the 1990s lacked constant digital noise. “There was a simpler way of thinking and being. And I think nostalgia kind of brings back a bit of a stabiliser. There's something about returning to a place that felt very familiar,” she said. Fast food offers both comfort and affordability during economic strain, making the revival of Chi-Chi’s and similar brands a timely response to current consumer sentiment.
