KFC is Leaving Kentucky

KFC, the fast-food giant once known as Kentucky Fried Chicken, is relocating its corporate headquarters from its home state of Kentucky to Texas. Parent company Yum Brands announced on Tuesday that KFC’s offices will move to Plano, Texas, where its sister brand, Pizza Hut, is already based.

The move marks a significant shift for the 95-year-old brand, which started in a small Kentucky town and grew into a global chain with over 30,000 restaurants across 150 countries. Yum Brands stated that consolidating KFC’s operations with Pizza Hut’s in Plano will enhance collaboration between its restaurant brands, which also include Taco Bell and Habit Burger.

Despite the relocation, KFC has promised to maintain a presence in Kentucky with plans to open a new flagship restaurant in Louisville. However, the decision to move corporate operations has drawn criticism, including from Kentucky Governor Andy Beshear, who expressed disappointment and urged the company to reconsider. “This company’s name starts with Kentucky, and it has marketed our state’s heritage and culture in the sale of its product,” Beshear said in a statement.

KFC has been facing challenges in the U.S. market, with a recent 5% drop in same-store sales as competitors like Popeyes, Raising Cane’s, and Wingstop gain traction. In response, the company has been experimenting with new restaurant concepts, including one focused on chicken tenders and dipping sauces. Yum Brands also recently announced that Taco Bell’s president will transition to KFC as its new CEO.

Over the next six months, approximately 100 KFC employees from Louisville will relocate to Texas, alongside 90 remote workers who will also shift to the new headquarters. The move aligns KFC with a growing trend of corporations relocating to Texas, joining companies like Tesla, SpaceX, and Hewlett-Packard, which have cited tax incentives and business-friendly policies as key factors in their decisions.