KFC Is Leaving Its Old Kentucky Home For Another Southern State
There's about to be a little less Kentucky in your bucket of finger-lickin' good KFC chicken. The chain, which formerly went by "Kentucky Fried Chicken" and now trades under the shorter acronym, announced yesterday that it was changing addresses. For the first time in its 95-year existence, it is moving its corporate headquarters away from the Bluegrass State and relocating to Plano, Texas.
The reasons for the move had nothing to do with acrimony towards Kentucky, nor did KFC execs admit that they were itching to try the secret ingredient in Texas salsa (it's butter!) on their daily lunch breaks. Rather, the switch is being framed as a matter of convenience. Yum! Brands, the parent company of KFC, decided to combine headquarters with another Yum! offshoot, Pizza Hut, which is already situated in Plano. Meanwhile, Taco Bell and Habit Burger, the other two Yum! brands, will remain side-by-side in California.
David Gibbs, Yum! Brands Chief Executive Officer, announced in a statement posted on the corporation's website that he felt combining the brain-power of the Pizza Hut and KFC teams would "maximize our unrivaled culture and talent as a competitive advantage." The press release also mentioned that KFC would be preserving its Kentucky roots by way of a "first-of-its-kind flagship restaurant" located in Louisville.
The KFC move may have been motivated by money
Kentucky governor Andy Beshear slammed KFC for leaving its namesake state, saying that, not only was he disappointed, but that he felt "Colonel" Harland Sanders, the iconic founder and mascot of KFC, would be put out as well. Some have wondered whether Yum! Brands was motivated by cold, hard dollars. Texas has a famously-low corporate tax, which has attracted brands like Tesla and Chevron to also set up shop in the Lonestar State. KFC has been fighting to stay afloat in recent years, with falling profits due to the rise of chicken-shop rivals like Raising Cane's and Wingstop.
You might be surprised to look at a U.S. map and learn where your other favorite drive-thru giants are headquartered. McDonald's, home of the endless menu hacks, has its global HQ in Chicago, while Burger King calls Miami home. It probably doesn't surprise you that In-N-Out, where you can find a meaty Flying Dutchman burger on the extensive secret menu, is based in California ... but did you know that it also has a corporate office in Tennessee?
Ultimately, several factors go into choosing where to headquarter a business, whether we're talking fast food or any other corporation. Accessibility to vendors, proximity to local markets, and availability of talent are all factors that have to be taken into consideration, and that's just a short list. KFC's move is likely the result of multiple such complex factors coming together.