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KFC, the iconic fast food chain, is relocating its corporate headquarters from Kentucky to Texas, as announced by its parent company, Yum Brands. The move will consolidate KFC's offices with those of Pizza Hut in Plano, Texas, as part of Yum's strategy to streamline its U.S. operations. This decision marks a significant shift for the 95-year-old company, which began in a small Kentucky town and grew to operate 30,000 restaurants in 150 countries.
Despite the headquarters' move, KFC plans to maintain a presence in Kentucky by building a new flagship restaurant in Louisville. However, the relocation has sparked disappointment from Kentucky Governor Andy Beshear, who expressed his concerns about the decision, stating, "This company’s name starts with Kentucky, and it has marketed our state’s heritage and culture in the sale of its product." He hopes the company will reconsider moving its employees out of the state.
The move to Texas aligns KFC with other major companies like Chevron, Tesla, and Hewlett-Packard, which have also relocated to the state, citing tax breaks and business-friendly regulations as motivating factors. Approximately 100 KFC employees from Louisville will relocate to Texas over the next six months, along with 90 remote-based workers.
KFC's business has faced challenges recently, with a reported 5% drop in same-store U.S. sales. The company is exploring new concepts, such as a restaurant focused on chicken tenders and sauces, to rejuvenate its brand.
Additionally, Yum Brands announced that Taco Bell's president will take over as KFC's CEO next month.