My favorite Mexican restaurant is GONE!

Outback Steakhouse to rebrand Chi-Chi's

LOUISVILLE (AP) — Chi-Chi's, the Mexican restaurant chain, may have served its last chimichanga. Outback Steakhouse (OSI) this week closed on its $42.5 million deal for the rights to 76 restaurants in the Chi-Chi's chain, which was beleaguered by bankruptcy and a hepatitis outbreak in western Pennsylvania.
<TABLE class=sidebar cellSpacing=0 cellPadding=0 border=0><TBODY><TR><TD colSpan=4> </TD></TR><TR><TD rowSpan=2> </TD><TD rowSpan=2> </TD><TD class=sidebar vAlign=top width=75>Problems mounted at Chi-Chi's after the nation's largest hepatitis A outbreak occurred at its Beaver County, Pa., restaurant last November.</TD><TD rowSpan=2> </TD></TR><TR><TD vAlign=bottom align=left>By Gene J. Puskar, AP</TD></TR></TBODY></TABLE>

Outback plans to convert many of the restaurants into its own brands — which include its signature Outback Steakhouse, Carrabba's Italian Grills, Bonefish Grills, Fleming's Prime Steakhouse and Wine Bars, Roy's and Cheeseburger in Paradise restaurants.

"We felt it was a good opportunity to acquire a large number of good locations that we can use for our brands," said Joseph Kadow, senior vice president for Outback Steakhouse, based in Tampa

The deal did not include Chi-Chi's brand, its restaurant operations or any recipes, Kadow said.

A statement posted on Louisville-based Chi-Chi's Web site said, "We would like to thank all of our loyal customers of the past 27 years and with a tear in our eye, say Adios."

A recorded message on Chi-Chi's toll-free guest relations hot line said the chain was no longer in business and apologized for any inconvenience caused by the closure of its restaurants.

The chain's parent, California-based Prandium, declined to comment Wednesday on the fate of Chi-Chi's.

Chi-Chi's was left reeling by a hepatitis A outbreak last fall that sickened 660 people who ate at a Beaver County, Pa., restaurant. The outbreak, traced to green onions, killed four. More that 300 victims filed claims seeking damages from the company.

Chi-Chi's filed for Chapter 11 bankruptcy protection a few weeks before the outbreak, due to unrelated cash-flow problems.

A call to a Chi-Chi's bankruptcy attorney in Delaware was not immediately returned.

The chain had about 100 restaurants at the time of the hepatitis outbreak, but the company said earlier this year that it would close more than two dozen.

William Marler, a lawyer for plaintiffs suing Chi-Chi's over the outbreak, said Outback's successful bid for the rights to the Chi-Chi's restaurants would not affect pending cases.

Marler, of Seattle, said about 150 of approximately 325 claims have been settled, with $7 million paid out so far. He said plenty remains in an existing insurance pool to pay off future claims.

"It would be very unlikely that this insurance money is not enough," said Marler, who represents about a third of claimants.

By acquiring the rights to the Chi-Chi's restaurants, Outback can convert them into its own brands or sell the properties. The restaurants are in several states, including New Jersey, Pennsylvania, Ohio, Michigan and Wisconsin, Kadow said.

The company hopes to move quickly to put its own name on some stores.

"We're going to move with all deliberate speed, but there may be permitting issues, there's obviously some renovations to be done," Kadow said in a phone interview this week.

Outback's stock fell 63 cents to close at $40.91 in trading Wednesday on the New York Stock Exchange.

brock, chi-chi's blows man. you live in chicago and chi-chi's is your favorite mexican restaurant? there are about 20 better ones i can name off the top of my head.

Use to laugh every time I heard one of thier ads..."When you are feeling a little Mexican"...still cracks me up.

Come on Blue!


I LOVED this place, the blackened chicken fajitas were to die for, and the Texas Nachoes were the best.

It was a simple place, not expensive, ETC..

i shouldn't be surprised though, they were dissapearing constantly, there used to be one right here in Champaign till it closed in 1999, now its a Chevy's which is good but not as good. The only one left in the state was in Orland Park, i made a visit there not even one month ago.

This is just a depressing day with this news....:finger:

well, if you're in champaign maybe chi-chi's is the best. in the lincoln park area of chicago, there is a mexican restaurant every two blocks and just about every one is better than chi-chi's.

i had the eggs don pepe at chi-chi's (the orland park one) when i was a kid and i threw up...have not been back.

Reminds me of when I was a kid and this burger place called "King Castle" closed down...


Always sucks to lose places you like.:breakit:

Gosh, I've never ever heard of them, much less tried them! Brock, go searching and look for some of the smaller, independent Mexican restaurants, you will more than likely soon be saying one of them are your favorites. Small one in Lakeland (Florida) that I prefer over any large chain........

yeah, in high school we would all go to rocky rococco's for pizza. the place had the best pizza around. they all closed down in the 90's. they are still around in wisconsin. my wife and i drove up to northern wisconsin last summer and i saw the rocky rococco sign from 94. i had to get off and get some pizza. we just ate like an hour ago and we got a little lost trying to find it. my wife was pissed but i told her that we had to stop because it was so rare. we stopped on the way back too. she still makes fun of me to this day.

There is a joint called Dos Reales in Champaign, its pretty damn good, authentic stuff..


The Pollo A La Parrilla is going to become my new thing.

And to think Bennigans got rid of the Fajitas there too, I LOVE THOSE THINGS!

Last Time I Was In A Chi-chi's Was About 10 Years Ago, Like Blue, The One In Orland Park.....the Kids Wanted To Go There, It Was The Sickest Rest. I Have Ever Been In..dirty As Hell, The Kids Wanted The Buffet, Which Is Dangerous In Any Rest. I Walk Up To The Buffet And Went Thru 30 Plates Before I Could Find One Without Dried Food On It.

That Say's It All.....and If You Live In Any Big City, There Is Real Mexican Food To Be Found.............g.

I HEAR YOU BLUE!!

I just get these fixes on certain food items and have to have it LOL

Krystal Burgers are excellent, but those are like a 5 hour drive away...

G - I have heard similar complaints from my friends and even my wife about that location, but something about those blackened chicken fajitas kept me coming back.

you just didn't know that it was sludge from the deep-friers that gave those blackened chicken fajitas that special something.

Man if you are sad Chi Chi's is gone you shouldn't despair, they aren't closing Taco Bell! You know a place is not authentic if they won't even dare put it in California.

kinda like jack in the box?

calling chi chi's mexican is like calling the olive garden an italian restaurant