KFC, the fast food giant formerly known as Kentucky Fried Chicken, is relocating its corporate headquarters from Kentucky to Texas, marking a significant shift for the 95-year-old brand that started in a small town in Kentucky.
Parent company Yum Brands announced Tuesday that KFC’s corporate offices will move to Plano, Texas, where they will join sister brand Pizza Hut’s headquarters. The decision is part of Yum’s strategy to consolidate its U.S. offices, which also include Taco Bell and Habit Burger, to foster better collaboration across brands.
Despite the relocation, KFC is not severing ties with its home state entirely. The company plans to open a flagship restaurant in Louisville, described as a “first-of-its-kind” concept.
The move has sparked disappointment from Kentucky Governor Andy Beshear, who expressed concerns over the company’s departure. “This company’s name starts with Kentucky, and it has long marketed our state’s heritage. I hope KFC reconsiders moving its employees out of Kentucky,” he said.
KFC has been facing challenges in the U.S. market, recently reporting a 5% decline in same-store sales. As competition from Popeyes, Wingstop, and Raising Cane’s intensifies, KFC has been experimenting with new concepts, including a restaurant focused on chicken tenders and sauces. Additionally, Yum Brands has appointed Taco Bell’s president as KFC’s new CEO, effective next month.
Around 100 corporate employees from Louisville will relocate to Texas within the next six months, along with another 90 remote-based workers.
KFC joins a growing list of companies moving operations to Texas, including Chevron, Tesla, SpaceX, and Hewlett-Packard. Many cite tax incentives and business-friendly policies as key reasons for the shift.
