KFC's U.S. restaurants are making a major switch after decades of loyalty to PepsiCo. Starting next year, the fast-food chain will replace PepsiCo beverages with Coca-Cola products, marking its first U.S. drink supplier change in decades. While some international KFC locations already serve Coca-Cola, the U.S. has remained a PepsiCo stronghold since the company acquired KFC in 1986.
The move is part of KFC's strategy to revitalize its U.S. business, which has faced stiff competition from rivals like Chick-fil-A and Popeyes. KFC U.S. President Catherine Tan-Gillespie described the switch as a 'critical step in the Kentucky Fried Comeback,' emphasizing the opportunity to innovate and meet evolving customer preferences. The transition to Coca-Cola is expected to be completed by the end of the first quarter of 2027.
Beverages have become a key differentiator for fast-food chains, with many expanding their drink menus to attract customers. KFC recently introduced new offerings like iced coffees and shakes at its innovation restaurant in Texas. Coca-Cola has also been instrumental in helping its restaurant partners develop unique drink options. Despite the switch, PepsiCo remains an important partner for KFC's international markets.
The beverage industry has seen some notable shifts in recent years, with PepsiCo securing Subway as a client in 2024. Coca-Cola has also successfully wooed away other PepsiCo customers, including Culver's, Arby's, and Panda Express. Such changes are rare but highlight the ongoing competition between the two beverage giants for valuable restaurant partnerships.