KFC, formerly known as Kentucky Fried Chicken, has announced that it will be relocating its United States headquarters to Plano, Texas from its namesake state. Parent company Yum Brands on Tuesday (local time) announced the major corporate reshuffle that will affect around 100 employees, who are set to transition over the next six months.
“Yum Brands and the KFC Foundation will maintain corporate offices in Louisville. Taco Bell and Habit Burger & Grill will remain headquartered in Irvine, California,” the statement released by Yum Brands clarified. However, brand headquarters and corporate office employees currently in Louisville will be relocated to Texas.
KFC official criticise move
KFC, founded by Colonel Harland Sanders and renowned for its secret blend of 11 herbs and spices, has long been associated with Kentucky. The decision to relocate its corporate base has drawn criticism from Kentucky officials, including Governor Andy Beshear, who expressed disappointment over the move. “This company’s name starts with Kentucky, and it has marketed our state’s heritage and culture in the sale of its product,” Beshear stated, urging Yum Brands to reconsider.
Louisville Mayor Craig Greenberg echoed the sentiment, emphasising that KFC was “born here and is synonymous with Kentucky”, according to a report by the Associated Press.
However, Yum Brands justified the decision by stating it was part of a broader plan to establish two brand headquarters in the US: One in Plano, Texas, for KFC and Pizza Hut, and another in Irvine, California, for Taco Bell and Habit Burger & Grill.
Corporate offices to remain in Louisville
Despite the headquarters move, Yum Brands confirmed that the KFC Foundation and corporate offices would remain in Louisville. Additionally, the company announced a $1 million endowment to the University of Louisville’s College of Business for Yum-sponsored scholarships. Plans are also underway to develop a flagship KFC restaurant in Louisville, reinforcing the brand’s presence in its home state.
Yum CEO David Gibbs stated that the relocation aims to foster greater collaboration among brands and employees, positioning the company for sustainable growth. Employees affected by the shift will receive relocation and transition support.
“These changes position us for sustainable growth and will help us better serve our customers, employees, franchisees and shareholders,” said Gibbs.
The relocation of approximately 100 KFC corporate roles will happen over the next six months, while the relocation of 90 remote positions will take place over the next 18 months, Yum Brands said.
Taco Bell, KFC lead Yum Brands growth
Yum! Brands’s earnings and revenue for the quarter that ended on December 1, 2024 exceeded Wall Street’s expectations, driven by robust sales at KFC’s international outlets and Taco Bell locations.
In 2024 full year, the company recorded a generally accepted accounting principles (GAAP) operating profit increase of 4 per cent. Worldwide system sales grew by 4 per cent, excluding foreign currency translation.
KFC saw a 3 percent increase, Taco Bell rose by 8 percent, and Pizza Hut experienced a slight decline of 1 percent. The company opened 4,535 gross units throughout the year, continuing its expansion efforts. In the December quarter, KFC’s international unit growth was particularly strong, with an 8 percent increase.
Headquartered in Louisville, Kentucky, Yum! Brands operates or franchises over 61,000 restaurants across more than 155 countries and territories. The company’s portfolio includes globally recognised brands such as KFC, Taco Bell, Pizza Hut, and Habit Burger & Grill. KFC, Taco Bell, and Pizza Hut are leaders in their respective categories—chicken, Mexican-inspired food, and pizza—while Habit Burger & Grill focuses on offering made-to-order, chargrilled burgers and sandwiches in a fast-casual setting.