KFC Swaps PepsiCo for Coca-Cola in U.S. Restaurants, Ending Decades-Long Partnership to Revitalize Brand

In a significant shift, KFC's U.S. locations are set to replace PepsiCo beverages with Coca-Cola products starting next year. This marks the first time in decades that the fast-food giant, owned by Yum Brands, has changed its primary beverage supplier in the United States.

While some of KFC's international markets already offer Coke, U.S. restaurants have exclusively served PepsiCo drinks since Pepsi acquired KFC in 1986. At that time, KFC was Coca-Cola's second-largest fountain account, only behind McDonald's. Even after Pepsi spun off KFC, Pizza Hut, and Taco Bell into Yum Brands, the fried chicken chain maintained its loyalty to PepsiCo.

This strategic move is part of a broader effort by KFC to rejuvenate its U.S. business and attract diners who have increasingly opted for competitors like Chick-fil-A and Popeyes. Catherine Tan-Gillespie, President of KFC U.S., emphasized in a memo to franchisees and employees that this decision is a crucial component of the “Kentucky Fried Comeback.” She stated that a new beverage offering with Coca-Cola will provide a platform for innovation, allow KFC to meet evolving consumer tastes, and give customers more reasons to choose their restaurants.

Beverages have become an increasingly vital element for fast-food chains seeking to engage consumers. Many establishments, including McDonald's and Taco Bell, have expanded their drink menus with trendy options such as refreshers and "dirty sodas." KFC itself has been exploring new drink concepts, including iced coffees and shakes, at its innovation restaurant, Open House, in McKinney, Texas.

Coca-Cola has previously indicated its collaborative approach with restaurant partners in developing novel drink creations. KFC anticipates completing the transition to Coca-Cola beverages across all its U.S. restaurants by the close of the first quarter of 2027. Despite this change, Tan-Gillespie affirmed that PepsiCo remains a significant partner for KFC’s parent company, Yum Brands, and continues to supply beverages to KFC’s international markets.

The rivalry between Coca-Cola and PepsiCo for major restaurant contracts has been ongoing for decades, representing both substantial sales opportunities and crucial brand visibility. While large chains rarely switch beverage providers, it is not unheard of. In 2024, PepsiCo secured Subway, the largest U.S. restaurant chain by location count, away from Coca-Cola. Conversely, Coca-Cola has recently won over several notable Pepsi customers, including Culver's, Arby's, and Panda Express.