KFC, formerly known as Kentucky Fried Chicken, is moving its U.S. headquarters from Louisville, Kentucky, to Plano, Texas. This decision, announced by parent company Yum Brands (Nasdaq: YUM), will require approximately 100 U.S. employees to relocate within the next six months. An additional 90 remote workers will also be asked to move to the campus where their work is based.
The move is part of Yum Brands’ larger strategy to establish dual headquarters. KFC and Pizza Hut will operate from Plano, Texas, while Taco Bell and Habit Burger Grill will continue to be based in Irvine, California.
Despite the relocation, Yum Brands will maintain corporate offices and the KFC Foundation in Louisville, Kentucky. The company also intends to open a flagship restaurant in Louisville. David Gibbs, CEO of Yum Brands, stated that these changes position the company for sustainable growth and will improve service to customers, employees, franchisees, and shareholders.
The decision has faced criticism from Kentucky’s Governor Andy Beshear, who expressed his disappointment. He emphasized KFC’s historical ties to the state, noting that the company’s name and marketing are based on Kentucky’s heritage. Louisville Mayor Craig Greenberg echoed these sentiments, emphasizing the brand’s strong connection to Kentucky.
In recent years, a number of businesses have moved to Texas. Companies such as Chevron, Charles Schwab Corporation, X (formerly Twitter), and SpaceX have also relocated to Texas.
Texas is an attractive destination for businesses due to several compelling reasons. Firstly, the state has no corporate or personal income tax, which results in significant savings for both employers and employees. Additionally, Texas maintains a capped franchise tax that does not exceed 1% for most businesses, fostering a profitable environment. The business-friendly climate is further enhanced by minimal red tape and bureaucracy, allowing companies to scale their operations efficiently.
Moreover, Texas’ central location, coupled with its robust transportation networks, provides cost-effective connectivity to major markets both domestically and internationally. The state’s commitment to economic growth creates a fertile landscape for innovation and expansion, supported by a fair and transparent tax and regulatory structure. With a skilled workforce of over 15 million and various incentive programs like the Texas Enterprise Fund, Texas continues to uphold its reputation as one of the best states for business.
KFC’s relocation of its U.S. headquarters signifies a strategic move toward sustainable growth and improved service. While the decision has faced criticism due to KFC’s historical ties to Kentucky, Yum! Brands aims to leverage Texas’ business-friendly environment, characterized by no corporate or personal income tax, minimal regulations, and a skilled workforce. This move aligns KFC with a growing trend of companies choosing Texas as their base of operations.
