KFC Is Flying the Coop and Moving to a New State — Yes, Really

KFC is making a major change that’s ruffling plenty of feathers. 

In February, the fast food company formerly known as Kentucky Fried Chicken announced it’s doing the unthinkable: Leaving Kentucky. At least its corporate headquarters is. 

According to The Guardian, Yum! Brands, KFC’s parent company, told investors it plans to move approximately 100 employees from its current corporate headquarters in Louisville, Kentucky, to Plano, Texas. There, it will join another Yum! Brands fast food chain, Pizza Hut. KFC said this was a “strategic decision” that would “foster greater collaboration among brands and employees.” 

“These changes position us for sustainable growth and will help us better serve our customers, employees, franchisees, and shareholders,” David Gibbs, the chief executive officer of Yum! Brands, stated. “Ultimately, bringing more of our people together on a consistent basis will maximize our unrivaled culture and talent as a competitive advantage.”

While the company didn’t explicitly state this, CBS and other outlets theorized that a secondary reason for the move could be the Lone Star State’s business-friendly incentives, including its zero corporate tax rate and the elimination of personal income tax. 

The decision drew ire from local Kentucky officials, including Gov. Andy Beshear, who shared in a statement: “I am disappointed by this decision and believe the company’s founder would be, too … This company’s name starts with Kentucky, and it has marketed our state’s heritage and culture in the sale of its product. My hope is that the company will rethink moving Kentucky Fried Chicken employees out of Kentucky.”

Councilman Anthony Piagentini had harsher words, writing in an X post, “This city should do everything in its power to become a business-friendly city. However, if KFC doesn’t give a crap about us, I don’t know why we should reciprocate. Call it Texas Fried Chicken and make it official. Let’s find companies that want to be here and support them.” 

However, KFC noted that it will still maintain strong ties to the state, including giving a $1 million endowment to the University of Louisville College of Business, the New York Times reported. It will also build a flagship restaurant in Louisville. It will also continue to operate the KFC Foundation in the city. 

Beyond moving its offices, the company also stated that it plans to bring more employees together by ending its remote work policy. According to the New York Times, the return to office will be wrapped up within the next 18 months.