Chi-Chi's: Difference between revisions
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In 2001, Chi-Chi's applied for a trademark<ref>{{cite web |url=http://www.uspto.gov/web/offices/com/sol/foia/ttab/other/2001/75537251.pdf | title=Salsafication trademark application|publisher=Trademark Trial and Appeal Board|accessdate=2007-05-16}}</ref> on the word "salsafication" but was denied by the [[Trademark Trial and Appeal Board]]. |
In 2001, Chi-Chi's applied for a trademark<ref>{{cite web |url=http://www.uspto.gov/web/offices/com/sol/foia/ttab/other/2001/75537251.pdf | title=Salsafication trademark application|publisher=Trademark Trial and Appeal Board|accessdate=2007-05-16}}</ref> on the word "salsafication" but was denied by the [[Trademark Trial and Appeal Board]]. |
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The company's slogans were "A celebration of food" and, later, "Life always needs a little salsa."<ref name="fundinguniverse"/> |
The company's slogans were "A celebration of food" and, later, "Life always needs a little salsa."<ref name="fundinguniverse"/> |
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==Bankruptcy, hepatitis A, and closure in United States== |
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Chi-Chi's last owner while still in business in the U.S. was Prandium Inc., which had filed for bankruptcy several times, including in 1993 as Restaurant Enterprises Group Inc. and in 2002 as Prandium.<ref name="spector">Spector, Amy. [http://findarticles.com/p/articles/mi_m3190/is_42_37/ai_109271417 "Prandium restaurant brands for sale; Koo Koo Roo, Chi-Chi's file for Chapter 11 - News - Prandium Inc".] ''Nation's Restaurant News.''' October 20, 2003. FindArticles.com. Accessed October 24, 2007.</ref> On October 8, 2003, Chi-Chi's and Koo Koo Roo, another Prandium subsidiary, filed for [[Chapter 11]] bankruptcy themselves.<ref name="spector" /> |
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In November 2003, a month after filing for [[Chapter 11]] bankruptcy, Chi-Chi's was hit with the largest [[hepatitis A]] outbreak in U.S. history, with at least four deaths and 660 other victims of illness in the [[Pittsburgh, Pennsylvania|Pittsburgh]] area,<ref name="deseret-20040404">[http://findarticles.com/p/articles/mi_qn4188/is_20040404/ai_n11453760 "Hepatitis A outbreak claims its 4th victim"]. ''Deseret News'' (Salt Lake City). April 4, 2004. FindArticles.com. Accessed October 24, 2007.</ref> including high school students who caught the disease from the original victims.<ref name="deseret-20031214">[http://findarticles.com/p/articles/mi_qn4188/is_20031214/ai_n11428214 "Hepatitis A outbreak spreads to students"]. ''Deseret News'' (Salt Lake City). December 14, 2003. FindArticles.com. Accessed October 24, 2007.</ref> The hepatitis was traced back to [[scallion|green onions]] at the Chi-Chi's at [[Beaver Valley Mall]] in [[Monaca, Pennsylvania]], about {{convert|30|mi|km|0|sp=us}} northwest of [[Pittsburgh]].{{Citation needed|date=September 2011}} Chi-Chi's settled the hepatitis A lawsuits by July 2004.<ref name="courtok">[http://findarticles.com/p/articles/mi_m3190/is_28_38/ai_n6115005 "Chi-Chi's gets court OK to settle hepatitis A claims"]. ''Nation's Restaurant News''. July 12, 2004. FindArticles.com. Accessed October 24, 2007.</ref> At the time the suits were settled, Chi-Chi's only had 65 restaurants, less than half of the number from only four years before.<ref name="lockyer">Lockyer, Sarah E. [http://findarticles.com/p/articles/mi_m3190/is_40_38/ai_n6232955 "Chi-Chi's shuts all units; Outback buys site rights: Mexican chain, in Chapter 11, retains brand, operations, recipes, trade secrets"]. ''Nation's Restaurant News''. October 4, 2004. FindArticles.com. Accessed October 24, 2007. </ref> |
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In August 2004, [[Outback Steakhouse]] bid $42.5 million<ref>{{cite news| url=http://findarticles.com/p/articles/mi_m3190/is_40_38/ai_n6232955/ | title=Chi-Chi's shuts all units; Outback buys site rights: Mexican chain, in Chapter 11, retains brand, operations, recipes, trade secrets | first=Sarah E. | last=Lockyer | year=2004 | work=Nation's Restaurant News}}</ref> 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.<ref name="lockyer" /> |
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Outback had hoped to convert many of the properties to their own restaurants, but instead eventually sold the majority of the properties to [[Kimco Realty Corporation]], a [[real estate investment trust]] company in [[New Hyde Park, New York]].{{Citation needed|date=September 2011}} |
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[[Hormel Foods]], who had bought the rights to use the Chi-Chi's brand on grocery products, continues to produce Chi-Chi's salsa and related products, and uses the [http://www.chichis.com chichis.com] [[domain name]] to market them. |
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Several Chi-Chi's restaurants operate in Belgium, Luxembourg, and Kuwait, with much of the original menu intact.<ref>[http://www.chichis.be "Chi-Chi's Belgian subsidiary website"]</ref> |
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== References == |
== References == |
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Revision as of 13:38, 1 March 2012
Chi-Chi's is a Mexican restaurant chain in operation in Belgium, Luxembourg, United Arab Emirates, Kuwait, Indonesia, and Canada. Chi-Chi's operated in the United States from 1975 until a 2004 bankruptcy. Chi-Chi's also marketed a line of grocery foods (later purchased by Hormel) with an emphasis on salsa.
Founding
Chi-Chi's was founded in 1975 in Richfield, Minnesota, a suburb of Minneapolis by restaurateur Marno McDermott and former Green Bay Packers player Max McGee. [1] From 1977 to 1986, the chain was run by former KFC executive Shelly Frank.[2] When Frank came on, the chain moved its headquarters to Frank's hometown of Louisville. By March 1995, the chain had grown to 210 locations.[3] Sales however began to decrease in the remaining years of the 1990s; the number of company-owned restaurants and its number of franchises declined, facing a very tough competition. Overburdened by debt, the company despite its efforts declared bankruptcy in May 2002.</ref> Chi-Chi's Master Franchise belongs now to a Swiss company who franchises Chi-Chi's in Europe, the Middle East, Asia, and North Africa, the most representative country being Belgium with 8 units.[4][5]
Management and marketing
In 2001, Chi-Chi's applied for a trademark[6] on the word "salsafication" but was denied by the Trademark Trial and Appeal Board. The company's slogans were "A celebration of food" and, later, "Life always needs a little salsa."[1]
References
- ^ a b "Chi-Chi's Inc". Funding Universe. Retrieved 2008-10-09.
- ^ Schoifet, Mark (January 27, 1986). "Frank exits Chi-Chi's, plans early retirement". Nation's Restaurant News. Retrieved July 2, 2010.
- ^ Benmour, Eric (June 14, 1996). "Chi-Chi's closes oldest store here as pullback continues". Business First of Louisville. Retrieved July 2, 2010.
- ^ www.chichis.be
- ^ http://fr.wikipedia.org/wiki/Chi-Chi%27s
- ^ "Salsafication trademark application" (PDF). Trademark Trial and Appeal Board. Retrieved 2007-05-16.