KFC to switch to Coca-Cola beverages in U.S. restaurants for the first time in decades

• KFC is switching from PepsiCo to Coca-Cola as its beverage supplier for U.S. restaurants.
• The fried chicken chain has served Pepsi drinks ever since the food and beverage giant acquired KFC in 1986.
• KFC is trying to win back U.S. diners who have ditched its buckets for rivals such as Chick-fil-A.

The change comes as KFC aims to win back U.S. 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 U.S. President Catherine Tan-Gillespie wrote in a memo to franchisees and employees obtained by CNBC. "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."

Beverage cups stacked inside a Yum Brands KFC restaurant in Shelbyville, Kentucky, Jan. 29, 2021.

Luke Sharrett | Bloomberg | Getty Images

For many fast-food chains, beverages have become a critical way to attract consumers. A number of restaurants, including McDonald's and Taco Bell, have broadened their drink offerings with options such as refreshers or "dirty soda." For its part, KFC recently unveiled new drinks, including iced coffees and shakes, at Open House, its innovation 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 be pouring Coke beverages in all of its U.S. restaurants by the end of the first quarter of 2027, Tan-Gillespie said.

Tan-Gillespie also said that Pepsi remains an important partner for KFC's parent company and the chain's international markets.

For decades, Coke and Pepsi have tussled over important restaurant partners, which represent both a sales opportunity and the chance to grow the visibility of their beverage brands.

It is unusual for large restaurant chains to switch beverage providers, but not unprecedented. In 2024, Pepsi poached Subway, the largest U.S. restaurant chain by number of locations, from Coke. Besides KFC, Coke has wooed away a number of notable Pepsi customers in recent years, including Culver's, Arby's and Panda Express.

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