Chi-Chi’s, once a popular Mexican restaurant that emerged in the 70’s only to disappear in 2004, may emerge once again. That is if an attempt to reanimate the brand is successful.
Raising money on StartEngine, Chi-Chi’s reborn has attracted the support of 360 investors, with the securities offering having raised over $748,000 as of this writing.
According to the Offering Documents, Chi-Chi’s is selling equity at a pre-money valuation of $10.01 million. Investors must commit a minimum of $249.48 to purchase shares at $1.54 each. The Reg CF offering expects to raise up to $3.5 million.
The company’s plan is to invest in two Rojo Mexican Grill restaurants in Minneapolis and convert them to the Chi-Chi brand. If the offering is successful, the aim is to launch a franchise program for Chi-Chi’s nationally.
The company is a startup and thus has little operating information.
The concept is the work of CEO Michael McDermott, the son of the original restaurant’s founder. He is also the founder and former CEO of Kona Grill. The founder of Chi-Chi’s (his father) will be an advisor.
The US Mexican restaurant industry is said to be valued at around $95.3 million. The offering page states that while the segment continues to grow, there is “no dominant national full-service Mexican brand.”
Chi-Chi’s was a mainstay of mall trips and birthday’s at one point pitching Mexican food like Chimichangas and fried ice cream. After 20 years of being gone from the restaurant market, it will be interesting to see if the brand and affiliated nostalgia will be sufficient to attract a supportive consumer.
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