KFC’s parent company, Yum! Brands, has announced that it will relocate the restaurant chain’s U.S. headquarters from Louisville, Kentucky, to Plano, Texas. This marks the second time the chain has left the state, with its original move being made after being purchased by Colonel Harland Sanders in the 1960s.
The relocation is expected to impact around 100 employees who will need to relocate within the next six months, while an additional 90 remote employees will be asked to make the move over the next year and a half. Yum! Brands CEO David Gibbs cited “sustainable growth” and “culture” as reasons for the move.
However, some experts suggest that lower taxes and a business-friendly environment in Texas may also play a role. Paul Miller, an accountant, notes that Texas has no corporate tax rate and instead imposes a lower gross receipts tax on companies’ sales. This could result in Yum! Brands paying more of its taxes in Texas, rather than Kentucky.
The relocation is part of a larger trend in the food industry, where many companies are moving their headquarters to states with more favorable business environments. The franchisees who own KFC restaurants will continue to pay royalties to the new Texas-based corporate headquarters, while the company itself will assume responsibility for payroll and accounting tasks.
Source: https://fortune.com/2025/02/20/kentucky-fried-chicken-moves-hq-to-texas