KFC to withdraw from US restaurants pepsico and switch to coca cola The drink will go on sale next year for the first time in decades. yum brand The chain has changed its drinks supplier, the restaurant company announced Thursday.
While some of KFC’s international markets offer cola products, the chain’s U.S. restaurants have stuck to PepsiCo beverages since Pepsi acquired KFC in 1986. At the time of the acquisition, KFC was the second largest Coke fountain account after McDonald’s. Pepsi later spun off KFC, along with sister chains Pizza Hut and Taco Bell, but the company remained loyal to its previous owners even as the Yum brand was integrated. Without Pepsi, Taco Bell couldn’t offer its iconic Mountain Dew Baja Blast.
The changes come as KFC aims to win back U.S. diners who have abandoned the fried chicken chain for rivals like Chick-fil-A and Popeyes.
In a memo to franchisees and employees obtained by CNBC, KFC U.S. President Katherine Tan Gillespie wrote, “This decision is an important step in the rebirth of Kentucky Fried.” “Coca-Cola’s new beverage offerings with new partners give us a platform to innovate, respond to changing tastes and give our customers even more reasons to choose us.”
Beverage cups stacked inside a Yum Brands KFC restaurant on January 29, 2021 in Shelbyville, Kentucky.
Luke Charette Bloomberg | Getty Images
For many fast food chains, beverages have become an important means of attracting consumers. Many restaurants, including McDonald’s and Taco Bell, are expanding their drink offerings by adding refreshments and options like “dirty sodas.” KFC recently unveiled new drinks, including iced coffee and shakes, at its innovation restaurant Open House in McKinney, Texas.
Coca-Cola told CNBC earlier this year that the company has helped many of its restaurant partners develop new drinks.
Tan Gillespie said KFC plans to offer cola drinks at all U.S. restaurants by the end of the first quarter of 2027.
Tan Gillespie also said Pepsi remains an important partner for KFC’s parent company and the chain’s international markets.
Coke and Pepsi have been competing for key restaurant partners for decades. This is both a sales opportunity and a chance to increase awareness of your beverage brand.
It’s unusual for a major restaurant chain to change its beverage provider, but it’s not unheard of. In 2024, Pepsi plucked Subway, the largest restaurant chain in the U.S. by number of stores, from Coke. Besides KFC, Coke has attracted many prominent Pepsi customers in recent years, including Culver’s, Arby’s and Panda Express.
