KFC will begin serving Coca-Cola instead of Pepsi in January 2027. Franchisees will need to prepare for the change at their restaurants, though KFC has not disclosed the cost of the switch.
KFC will begin replacing Pepsi with Coca-Cola products at its U.S. restaurants in January 2027, bringing an end to a supplier relationship that began in 1986, according to Fox Business. The change will roll out to roughly 3,700 locations nationwide and is expected to be complete by spring. Coca-Cola products will take the place of Pepsi beverages throughout the U.S. system.
The relationship with Pepsi dates back to PepsiCo's purchase of KFC in 1986. PepsiCo spun off its restaurant businesses in 1997, but the chicken chain kept pouring Pepsi under parent company Yum! Brands for nearly three more decades.
KFC is positioning the switch as part of a broader effort to modernize the brand and give guests more reasons to visit. KFC President Catherine Tan-Gillespie said, "This partnership is about more than what's in the cup." The company said the new relationship could produce new food-and-beverage pairings and a wider drink menu.
Dagmar Boggs, president of foodservice and on-premise for The Coca-Cola Company, said the partnership creates opportunities to develop new food-and-drink combinations. The change is limited to KFC's U.S. business. According to Reuters, PepsiCo recently renewed its agreements covering Taco Bell and KFC's international restaurants. That leaves two of Yum! Brands’ largest U.S. chains using competing beverage suppliers, a distinction that matters for franchisees who operate both brands and manage two sets of supplier relationships.
The switch will require changes to fountain equipment, syrup lines and menu boards at KFC restaurants. Neither the cost of the transition for franchisees nor the financial terms of the Coca-Cola agreement have been disclosed. Operators will also have to see whether customers embrace the new drink lineup and how sales compare once the transition is complete.
For anyone considering a QSR franchise, Item 8 of the Franchise Disclosure Document is worth a close look. It explains what franchisees are required to purchase, which suppliers they must use and whether the franchisor or its affiliates benefit financially from those arrangements. This information can give candidates a better idea of how much control they'll have over purchasing and what it could mean for their operating costs.
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