KFC, the fast-food chain synonymous with Kentucky Fried Chicken, is relocating its corporate headquarters from its birthplace in Kentucky to Texas, CNN reports.
The parent company, Yum Brands, announced the move on Tuesday, stating that KFC’s headquarters will join Pizza Hut’s offices in Plano, a suburb of Dallas.
This relocation marks a significant change for the 95-year-old company, which originated at a motel in a small Kentucky town. The company’s name helped thrust the state into global prominence as the brand expanded to 30,000 restaurants across 150 countries.
Yum Brands cited the move as part of a broader strategy to consolidate its US headquarters for its various restaurant brands, which also include Taco Bell and Habit Burger, based in Irvine, California, to just two locations. The company explained that combining KFC’s and Pizza Hut’s offices in Plano will “foster greater collaboration among brands and employees.”
Despite the headquarters’ departure, KFC will maintain a presence in Kentucky with plans for a new “first-of-its-kind flagship restaurant” to be built in Louisville.
News of the move has reportedly caused dismay within Kentucky. Governor Andy Beshear expressed his disappointment in a statement, suggesting that Colonel Sanders, the company’s founder, would share his sentiment.
KFC’s business has faced challenges in recent years. The chain recently reported a 5% drop in same-store US sales as competitors like Popeyes, Wingstop, and Raising Cane’s have grown more popular with diners. The company recently opened a concept restaurant focused on chicken tenders and sauces as a way to test new ideas for the chain. Yum also recently announced that Taco Bell’s president will become KFC’s CEO starting next month.
Approximately 100 Louisville-based KFC corporate employees will relocate to Texas over the next six months, along with another 90 remote-based workers.
KFC’s move aligns with a trend of companies relocating to Texas. Oil giant Chevron, Elon Musk’s Tesla, X, and SpaceX, as well as Hewlett-Packard, have all made similar moves in recent years. These companies cite various factors influencing their decisions, including tax breaks and business-friendly regulations in the Republican-run state.
