KFC will begin moving its U.S. beverage program from PepsiCo to Coca-Cola next year, a change the chain hasn't made in decades. KFC U.S. President Catherine Tan-Gillespie detailed the plan in a memo sent to franchisees and employees that CNBC reviewed. She said the goal is for Coke to be installed in every U.S. restaurant before the first quarter of 2027 concludes.
KFC is trying to lure back American diners who have favored competitors like Chick-fil-A and Popeyes. Tan-Gillespie wrote, "This decision is a critical step in the Kentucky Fried Comeback." She added, "A new beverage offering, with a new partner in Coca-Cola, gives us a platform to innovate, meet changing tastes and give customers more reasons to choose us." Recently, KFC introduced new drink options, including items such as iced coffee and shakes, at Open House, its test kitchen restaurant in Texas. Coca-Cola told CNBC earlier this year that it has helped many restaurant partners develop new beverages.
KFC's U.S. stores have poured PepsiCo drinks since 1986, when Pepsi acquired the chicken chain. At that point, KFC was Coca-Cola's second-largest fountain account, behind McDonald's. Pepsi later separated KFC, together with Pizza Hut and Taco Bell, into the company that became Yum Brands, and those brands kept pouring Pepsi drinks.
Taco Bell's Mountain Dew Baja Blast exists because of Pepsi; without that partnership, it wouldn't be on the menu. Some KFC markets outside the U.S. already serve Coke products, and Tan-Gillespie emphasized Pepsi is still a key partner for KFC's parent company and for the brand in overseas markets.
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Restaurant beverage contracts are a big prize for Coke and Pepsi, boosting both sales and brand visibility. Big chains do not often swap providers, but it happens. In 2024, Pepsi won Subway away from Coca-Cola.
In recent years, Coca-Cola has also brought on former Pepsi customers like Culver's, Arby's and Panda Express. For everyday diners, this means KFC's drink stations will start to look different next year, with a full U.S. switch targeted by late March 2027. If you track these brands, it is another reminder that the cola wars are very much alive, and a marquee account just moved the scoreboard.
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