KFC, the fast-food chain that was originally known as Kentucky Fried Chicken, is relocating its corporate headquarters from Louisville, Kentucky to Plano, Texas, in a move that has sparked disappointment in its home state.
The decision by Yum! Brands, the parent company of KFC, to shift its operations is driven by the business-friendly environment in Texas, which is known for its lower corporate taxes.
The company announced that approximately 100 employees will move from Louisville to Plano over the next six months, with an additional 90 remote workers expected to relocate during the following 18 months. While the move marks a significant shift in the company’s corporate structure, Yum! Brands confirmed that KFC will maintain some operations in Kentucky, including the KFC Foundation and its sponsorship of local initiatives.
Governor of Kentucky, Andy Beshear, expressed his dismay at the decision, noting that KFC’s roots are deeply tied to the state.
“This company’s name starts with Kentucky, and it has marketed our state’s heritage and culture in the sale of its product,” Beshear remarked.
Louisville Mayor Craig Greenberg also voiced his disappointment, emphasizing the brand’s strong association with Kentucky.
The move to Texas is part of Yum! Brands’ broader strategy to establish two corporate headquarters: one for KFC and Pizza Hut in Plano, and another for Taco Bell and Habit Burger & Grill in Irvine, California. David Gibbs, CEO of Yum! Brands, stated that the relocation would foster greater collaboration and help the company position itself for sustainable growth, ultimately benefiting employees, customers, and shareholders.
While the move has drawn attention due to KFC’s longstanding connection with Kentucky, it is also part of a broader trend of companies relocating to Texas, attracted by its favorable tax policies. Notably, Elon Musk’s Tesla and SpaceX also moved their corporate headquarters to Texas in recent years.
Despite the change in location, KFC will continue to honor its Kentucky heritage, including plans to build a flagship restaurant in Louisville. Yum! Brands also committed to supporting the local community by providing a $1 million endowment to the University of Louisville’s College of Business for scholarships and franchise excellence programs.
Although the move has sparked some backlash, KFC’s global reach, with over 30,000 locations in more than 145 countries, remains strong.
The Guardian, BBC, and FOX Business contributed to this report.
