In 1999, Julio Licón and Marty Sokol walked into Mr. D’s Cocktail Lounge, located in a Montebello mini-mall. Business was fading at Mr. D’s and the owner wanted out. The bar drew a local Mexican-American clientele, a smattering of self-identifying gay men and women, trans women and drag queens.

It was proposed to rename the Mr. D's into "Chico," because "the place is small and [they were] looking to appeal mostly to a male clientele.” Licón and Sokol loved the name.

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