A view of the KFC restaurant in Vallejo, California.
Justin Sullivan | Getty Images
KFC’s US restaurants will be discontinued PepsiCo and switch to Coca-cola drinks next year, marking the first time in that decade Brand Yum The chain has changed its drink supplier, the restaurant company said on Friday.
Some of KFC’s international markets serve Coke products, but US restaurants have stuck with PepsiCo beverages since Pepsi bought KFC in 1986. At the time of the acquisition, KFC was Coke’s second-largest fountain account, behind only McDonald’s. Pepsi later spun off KFC, along with sister chains Pizza Hut and Taco Bell – but even as a merger of Yum Brands, the company remained loyal to its previous owner. Without Pepsi, Taco Bell wouldn’t be serving a good Mountain Dew Baja Blast.
The change comes as KFC aims to win back US diners, who have ditched the fried chicken chain for rivals such as Chick-fil-A or Popeyes.
“This decision is a critical step in the Kentucky Fried Comeback,” KFC US President Catherine Tan-Gillespie said in a memo to franchisees and employees obtained by CNBC. “A new beverage offer, with a new partner in Coca-Cola, gives us a platform for innovation, meeting changing tastes and giving customers more reasons to choose us.”
Beverage cups are stacked at a Yum Brands KFC restaurant in Shelbyville, Kentucky, January 29, 2021.
Luke Sharrett | Bloomberg Getty Images
For many fast food chains, beverages have become a critical way to attract consumers. Some restaurants, including McDonald’s and Taco Bell, have expanded their beverage offerings with options such as soft drinks or “dirty sodas.” For its part, KFC recently unveiled new drinks, including iced coffee and shakes, at Open House, an innovative restaurant in McKinney, Texas.
Coke told CNBC earlier this year that the company has helped many of its restaurant partners create new drinks.
KFC expects to serve Coke drinks in all its US restaurants by the end of the first quarter of 2027, Tan-Gillespie said.
Tan-Gillespie also said Pepsi remains an important partner for parent company KFC and the chain’s international markets.
For decades, Coke and Pepsi have battled with their important restaurant partners, who share sales opportunities and opportunities to increase the visibility of their beverage brands.
It’s not unusual for a large restaurant chain to switch beverage suppliers, but it’s not unprecedented. In 2024, Pepsi takes over Subway, the largest US restaurant chain by number of locations, from Coke. In addition to KFC, Coke has attracted several notable Pepsi customers in recent years, including Culver’s, Arby’s and Panda Express.