KFC is moving its U.S. headquarters from Louisville, Kentucky, to Plano, Texas, parent company Yum Brands announced Tuesday. About 100 KFC U.S. employees will need to relocate in the coming six months, and another 90 remote workers will also be asked to move in the next year and a half. Yum, which owns KFC, Pizza Hut, Taco Bell, and The Habit Burger Grill, is consolidating two corporate campuses: Plano for KFC and Pizza Hut, and Irvine, California, for Taco Bell and The Habit Burger Grill.
Yum Brands CEO David Gibbs said in a statement: "These changes position us for sustainable growth and will help us better serve our customers, employees, franchisees and shareholders. Ultimately, bringing more of our people together on a consistent basis will maximize our unrivaled culture and talent as a competitive advantage." Executives cited broader workplace trends since the onset of the Covid-19 pandemic as part of the rationale behind the move, including shifting office space needs and the rise of hybrid or remote work.
Louisville Mayor Craig Greenberg expressed his displeasure with KFC's departure from Kentucky. "I am disappointed to learn that Yum! Brands will move its KFC employees to Texas - especially since the brand was born here and is synonymous with Kentucky," he said in a statement to the Cincinnati Enquirer. Still, he added, "I've asked to meet with the Yum! CEO soon and am heartened Yum! will retain its corporate headquarters and 560 employees here."
The departure mirrors a relocation trend seen among several large corporations aiming to reduce tax burdens and reshape their office footprints. According to a 2023 CBRE report, Texas has been the most popular destination for companies pursuing business-friendly environments. Yum's move follows a similar decision by Papa Johns in 2020, when the pizza chain shifted its headquarters from Louisville to Atlanta, though it later maintained some offices in Kentucky.
Yum insisted it would keep other corporate operations in Louisville even as KFC's presence shrinks. It plans to maintain the KFC Foundation there, as well as offices for its overall corporate team. The company also announced a $1 million endowment to the College of Business at the University of Louisville, reflecting a continued tie to the region where Colonel Harland Sanders first launched his fried chicken empire.
KFC's brand identity is deeply rooted in Kentucky, from its iconic name to decades of marketing campaigns. Sarah Davasher-Wisdom, president and CEO of Greater Louisville Inc., remarked: "KFC is a Greater Louisville homegrown company that has become one of the largest restaurant chains in the world over the last 90 years. While GLI is disappointed to see the relocation of some employees from our region, we are optimistic that Yum! will continue its long-standing partnership with our community."
Company representatives confirmed that KFC would move out the majority of its U.S. team but continue with plans to build a new flagship restaurant in Louisville. The decision to uproot 100 employees and scores of remote workers fits into Yum's overall strategy to have two main headquarters for its global brands. Plano has been home to Pizza Hut's global team, while Irvine accommodates Taco Bell and The Habit Burger Grill.
Corporate relocations can bring significant tax advantages, especially for large restaurant operators. Yum's latest move underscores a broader pattern within the restaurant sector, which is reevaluating office leases and seeking locations that align with evolving workforce expectations. As remote and hybrid work continue to shape corporate policies, large chains are looking for ways to bring their teams together under fewer rooftops.
For KFC, the operational transition could also introduce efficiencies by placing the brand's leadership closer to Pizza Hut's existing facilities. Since Yum's formation, each brand has maintained distinct headquarters, but the growing emphasis on synergy has encouraged the company to reevaluate its property footprint. The shift comes amid an ongoing industry effort to optimize overheads and be more responsive to consumer demands.
In Louisville, local officials aim to retain strong ties with Yum. Greenberg stated: "I will work tirelessly with Yum!'s leadership to continue growing its presence in Louisville." At present, KFC remains committed to preserving some aspects of its Kentucky heritage, though the bulk of its U.S. leadership and strategic operations will soon be based deep in the heart of Texas.
- Approximate employee moves:
- 100 KFC U.S. employees within six months.
- 90 remote workers within 18 months.
- Yum's new structure:
- Plano, Texas: KFC and Pizza Hut.
- Irvine, California: Taco Bell and The Habit Burger Grill.
- Ongoing local presence:
- KFC Foundation in Louisville.
- Corporate offices in Louisville.
- $1 million endowment to the University of Louisville's College of Business.
