KFC to switch from Pepsi to Coca-Cola at U.S. restaurants in first change in decades
The Yum Brands chicken chain will move its U.S. drink business to Coca-Cola next year, ending a PepsiCo tie that dates back to 1986.
At a glance
- KFC's U.S. restaurants will switch from PepsiCo to Coca-Cola beverages next year, the chain's first supplier change in decades.
- Pepsi bought KFC in 1986 and later spun it off with Pizza Hut and Taco Bell as Yum Brands; U.S. KFC outlets kept Pepsi.
- KFC expects Coca-Cola in all U.S. restaurants by the end of the first quarter of 2027 as it tries to win back diners.
KFC's U.S. restaurants will drop PepsiCo drinks and switch to Coca-Cola beverages next year, the first change of drink supplier for the Yum Brands chain in decades, the company said Thursday.
Some KFC international markets already serve Coca-Cola products, but its U.S. restaurants have stayed with Pepsi ever since Pepsi bought KFC in 1986. At the time of that acquisition, KFC was Coke's second-largest fountain account, behind only McDonald's. Pepsi later spun off KFC together with sister chains Pizza Hut and Taco Bell to form Yum Brands, and the U.S. chicken chain stayed loyal to its former owner. Without Pepsi, for example, Taco Bell would not serve its Mountain Dew Baja Blast.
An effort to win back diners
The change comes as KFC tries to draw back U.S. customers who have moved to rivals such as Chick-fil-A and Popeyes.
"This decision is a critical step in the Kentucky Fried Comeback," KFC U.S. President Catherine Tan-Gillespie wrote in a memo to franchisees and employees obtained by CNBC. "A new beverage offering, with a new partner in Coca-Cola, gives us a platform to innovate, meet changing tastes and give customers more reasons to choose us."
KFC expects to be pouring Coca-Cola drinks in all of its U.S. restaurants by the end of the first quarter of 2027, Tan-Gillespie said. She added that Pepsi remains an important partner for KFC's parent company and for the chain's international markets.
Drinks as a draw
Beverages have become a key way for fast-food chains to attract customers. McDonald's and Taco Bell are among the restaurants that have broadened their drink menus with options such as refreshers or "dirty soda." KFC recently unveiled new drinks, including iced coffees and shakes, at Open House, its innovation restaurant in McKinney, Texas. Coca-Cola told CNBC earlier this year that it has helped many of its restaurant partners create new drinks.
A rare but not unique switch
Coke and Pepsi have competed for decades over restaurant partners, which offer both sales and visibility for their beverage brands. Large chains rarely change suppliers, but it does happen: in 2024 Pepsi took Subway, the largest U.S. restaurant chain by number of locations, from Coke. Coke has also won over notable former Pepsi customers in recent years, including Culver's, Arby's and Panda Express.
Source: CNBC.
Questions and answers
- Why is KFC switching to Coca-Cola?
- KFC U.S. President Catherine Tan-Gillespie said a new beverage partner gives the chain a platform to innovate and meet changing tastes as it tries to win back U.S. customers.
- How long has KFC served Pepsi in the U.S.?
- Since 1986, when Pepsi bought KFC. Pepsi later spun off KFC, Pizza Hut and Taco Bell into Yum Brands, but U.S. KFC restaurants continued serving Pepsi drinks.
- When will U.S. KFC restaurants serve Coca-Cola?
- KFC expects to be pouring Coca-Cola beverages in all of its U.S. restaurants by the end of the first quarter of 2027, according to Tan-Gillespie.
