The Mexican restaurant is waiting to receive its liquor license and should open in the first week in March, said co-owner Teo Estrada.
The restaurant will occupy the former site of King George Pub, which closed in 2001 after 12 years of business.
Mi Rancho will be open seven days a week and have a full bar.
This will be the local chain's ninth location. Mi Rancho first opened in Clearwater in 1996.
Estrada said the restaurant will need 15 employees, but they will be transferred from other locations.
The owners decided to open the new restaurant because of the business potential in downtown Augusta, he said.