The KFC Corporation has always been associated with Kentucky; its former brand name, and the designation that many consumers still think of when they’re in the mood for a bucket of chicken, is Kentucky Fried Chicken. It has maintained its headquarters in Louisville, Kentucky, for nearly 100 years. But in a move that seemingly came as a shock to consumers and employees, especially those living in Kentucky, KFC’s parent company Yum! Brands recently announced plans to move the headquarters to Plano, Texas.

In announcing the move, Yum! Brands cited its goal of achieving greater brand collaboration among its various subsidiaries, which also include Pizza Hut Global. And Pizza Hut already is based in Plano. It also is likely in search of corporate and cost benefits: Texas is known for its relatively low corporate taxes and lenient regulations on private companies. Many other corporations have announced plans or already moved to Texas, including Chevron, the second largest domestic oil provider in the United States. 

Regardless of these practical motives, the announcement drew widespread displeasure from Kentucky officials. Governor Andy Beshear released a statement, emphasizing the symbolism and meaningfulness of the state’s heritage and culture as part of the appeal of KFC products. He also highlighted the ways that the company had profited from such associations in the past, leading to a call for Yum! Brands leadership to rethink its decision.

Such a reconsideration seems unlikely though, considering the branding strategies that the company has adopted in the recent past. Rather than embracing the Kentucky connection, KFC has been distancing itself from this image for decades. Most notably, the company shortened its name in 1991, arguably to avoid prompting the unhealthy connotations associated with fried foods. Furthermore, KFC has actively pursued more international expansions. In global markets, the image of Kentucky has little resonance or meaning. For international consumers, KFC is the only name they know. 

Currently, KFC maintains approximately 30,000 locations globally, with particular intensity in the United States, China, and Europe. Recent earnings reports also indicate that Yum! Brands opened 2,892 new KFC restaurants in 2024—not counting the opening of its new Texas headquarters.

Discussion Questions 

1. Do you think this move will impact the reputation of KFC? How about its revenue?
2. Could Yum! Brands have made this move without alienating the state of Kentucky? Is there anything it can do to manage the negative publicity associated with the move?

Sources: Louis Casiano, “KFC Moving US Headquarters from Kentucky to Texas, Citing Better Prospects for Growth,” FOX Business, February 18, 2025; Sherin Shibu, “KFC Is Moving its Corporate Headquarters Out of Kentucky. Here’s What We Know,” Entrepreneur, February 19, 2025; Victor Mather, “You Can Take the Fried Chicken Out of Kentucky…,” The New York Times, February 19, 2025