KFC’s US restaurants will drop PepsiCo drinks and switch to Coca-Cola next year, the first change of beverage supplier since Pepsi bought the chain in 1986.
The backstory: KFC has served Pepsi drinks ever since PepsiCo acquired it in 1986. At the time of that deal KFC was Coke’s second-largest fountain account, trailing only McDonald’s.
- Pepsi later spun off KFC along with sister chains Pizza Hut and Taco Bell, and the combined Yum Brands stayed loyal to its former owner. Taco Bell’s Mountain Dew Baja Blast depends on that Pepsi tie.
What they're saying: "This decision is a critical step in the Kentucky Fried Comeback," KFC US president Catherine Tan-Gillespie wrote in a memo to franchisees and employees obtained by CNBC.
- A new partner "gives us a platform to innovate, meet changing tastes and give customers more reasons to choose us," Tan-Gillespie wrote. She said Pepsi remains an important partner for Yum and for KFC’s international markets.
The big picture: Fountain drinks have become a main draw in fast food, with McDonald’s and Taco Bell broadening menus with refreshers and dirty soda. KFC recently unveiled iced coffees and shakes at Open House, its innovation restaurant in McKinney, Texas.
Between the lines: Large chains seldom switch soda suppliers. Pepsi poached Subway from Coke in 2024, while Coke has wooed away Culver’s, Arby’s and Panda Express in recent years.
What's next: Tan-Gillespie said KFC expects every US restaurant to be pouring Coke beverages by the end of the first quarter of 2027. Some international markets already serve Coke products.
Why it matters: KFC is trying to win back US diners who traded its buckets for Chick-fil-A and Popeyes, and the drink menu is the cheapest lever a chain can pull on both traffic and check size.
