KFC, the fast food chain formerly known as Kentucky Fried Chicken, is leaving the state where it all began.
The chicken chain’s parent company, Yum Brands, announced Tuesday that KFC’s corporate headquarters is leaving Kentucky for Texas, joining sister brand Pizza Hut’s offices in the Dallas suburb of Plano.
It’s a notable change for the 95-year-old company that got its start at a motel in a small Kentucky town, thrusting the state’s name into one of the most iconic chains that now total 30,000 restaurants across 150 countries.
The relocation is part of Yum’s broader plans to have just two US headquarters for its restaurants, which also includes Irvine, California-based Taco Bell and Habit Burger. Combining KFC’s offices with Pizza Hut in Plano will “foster greater collaboration among brands and employees,” the company said in a press release.
KFC isn’t completely abandoning its birthplace. It has plans for a new “first-of-its-kind flagship restaurant” set to be built in Louisville.
However, news of the departure reportedly angered Kentucky Governor Andy Beshear, who said in a statement to the Associated Press that he’s “disappointed by this decision” and said he believes Colonel Sanders, “the company’s founder, would be, too.”
“This company’s name starts with Kentucky, and it has marketed our state’s heritage and culture in the sale of its product,” Beshear added.
KFC’s business has been struggling for years, with the chain recently reporting a 5% drop in same-store US sales as rivals like Popeyes, Wingstop and Raising Cane’s attract more diners. It recently opened a concept restaurant focused on chicken tenders and sauces in hopes of incubating ideas to bring to the chain. Yum also recently announced that Taco Bell’s president will move over to KFC and serve as its CEO beginning next month.
Approximately 100 Louisville-based KFC corporate employees will relocate to Texas over the next six months. Plus, another 90 remote-based workers will also move to the new combined headquarters.
KFC joins a parade of companies relocating to the Republican-run state of Texas, with oil giant Chevron, Elon Musk’s Tesla, X and SpaceX, as well as Hewlett-Packard all making similar moves in recent years. Companies have cited a number of reasons for their moves to Texas, including tax breaks and business-friendly regulations.
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