KFC announced Thursday that its U.S. restaurants will transition to Coca-Cola beverages beginning next year, ending a decades-long relationship with PepsiCo. The chicken chain has maintained its exclusive partnership with PepsiCo since the company acquired KFC in 1986, even after Pepsi divested the restaurant brand alongside Pizza Hut and Taco Bell to form Yum Brands. Several KFC international markets already serve Coca-Cola products, but the U.S. operation has remained loyal to its former owner throughout that period.
The shift represents part of KFC’s broader effort to revitalize its U.S. business and compete with rivals like Chick-fil-A and Popeyes that have captured market share from the chain. KFC U.S. President Catherine Tan-Gillespie described the partnership change as “a critical step in the Kentucky Fried Comeback” in communications to franchisees and employees, emphasizing that the new beverage lineup will enable the company to innovate and better meet consumer preferences. The chain has already begun experimenting with expanded drink options, including iced coffees and shakes, through its innovation restaurant in McKinsey, Texas.
Beverages have become increasingly important competitive tools within the fast-food industry, with major chains using specialty drinks and new flavor offerings to differentiate themselves and attract customers. McDonald’s, Taco Bell, and other operators have expanded their drink portfolios with options such as refreshers and specialty sodas. KFC expects to have Coca-Cola products available throughout its U.S. restaurant network by the end of the first quarter of 2027.
The beverage supplier landscape for major restaurant chains remains highly competitive, with Coca-Cola and PepsiCo regularly competing for partnership agreements. While major chains rarely switch suppliers, such transitions do occur occasionally. PepsiCo secured Subway, the nation’s largest restaurant chain by location count, in 2024, while Coca-Cola has successfully attracted several prominent former Pepsi partners in recent years, including Culver’s, Arby’s, and Panda Express. Tan-Gillespie noted that PepsiCo will continue serving as an important partner for Yum Brands’ international operations.
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