KFC shifts its headquarters from Kentucky to Texas: All you need to know about the move

The KFC headquarters shift has been making headlines as the fast-food giant relocates its U.S. headquarters from Louisville, Kentucky, to Plano, Texas. This move was announced by the parent company Yum! Brands on February 18, 2025.

The decision will affect approximately 100 corporate employees, who are expected to transfer over the next six months. Moreover, an additional 90 remote employees will be asked to relocate within the next 18 months.

The decision aims to foster greater collaboration among brands and employees by consolidating operations in the two main headquarters: Plano for KFC and Pizza Hut, and Irvine, California, for Taco Bell and Habit Burger & Grill.

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Strategic reasons behind the KFC shift

Yum! Brands restructures headquarters: KFC to operate from Texas - Image via Getty

The KFC shift is part of Yum! Brands’ larger plan to enhance collaboration and foster sustainable growth. The company aims to bring employees and brands closer to optimize operations. David Gibbs, CEO of Yum! Brands stated,

"These changes position us for sustainable growth and will help us better serve our customers, employees, franchisees, and shareholders."

By consolidating KFC and Pizza Hut’s headquarters in Texas, Yum! Brands hopes to streamline management, enhance communication, and strengthen business relationships between its key brands. KFC's move aligns with a growing trend of companies relocating to Texas, attracted by the state's favorable business environment, including lower taxes and business-friendly policies.

In recent years, several major corporations have made similar moves, citing the state's economic advantages as a significant factor in their decisions. With this KFC shift, Plano continues to attract high-profile brands, reinforcing its position as a corporate hub for the fast-food industry.

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Employee impact and relocation process

100 KFC U.S. corporate employees and 90 remote employees to be relocated to Plano (Image via KFC)

According to reports, approximately 100 KFC U.S. corporate employees will move to Plano over the next six months, while 90 remote employees will be asked to relocate within 18 months. Yum! Brands have assured that affected workers will receive relocation and transition support.

Plano, already home to Pizza Hut’s headquarters, will now serve as a primary hub for Yum! Brands’ operations. The KFC shift aims to increase efficiency by having leadership teams and corporate offices in a single location rather than being spread across multiple states.

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Yum! Brands keeps ties to Kentucky

Despite the KFC shift, Yum! Brands has emphasized that its connection to Kentucky remains strong. The company announced a $1 million endowment to the University of Louisville’s College of Business, funding scholarships and expanding the Yum! Center for Global Franchise Excellence.

The University of Louisville (Image via University of Louisville)

Additionally, KFC plans to establish a flagship restaurant in Louisville, further maintaining a physical presence in the state. While corporate offices are moving, Kentucky will continue to play a role in KFC’s future.

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Kentucky officials react to the KFC shift

The KFC shift has been met with disappointment from Kentucky officials. Governor Andy Beshear publicly criticized the decision, stating:

"I am disappointed by this decision and believe the company's founder would be, too."

He emphasized that KFC’s name itself reflects Kentucky’s heritage which has been a key part of the state’s identity. However, despite the public backlash, Yum! Brands remain firm in its decision, citing long-term growth as the primary factor.

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The relocation of KFC's U.S. headquarters from Kentucky to Texas signifies a strategic move by Yum! Brands to enhance collaboration and drive growth. While the decision reflects broader corporate trends and aims to position the company for future success, it also marks the end of an era for KFC's longstanding ties to its namesake state.