KFC will switch from Pepsi to Coca-Cola in 2027

American KFC restaurants to abandon PepsiCo and move on to Coca-Cola drinks next year, marking the first time in decades that the Yum Brands The chain has changed beverage suppliers, the catering company announced Thursday.

Some KFC international markets serve Coca-Cola products, but the chain’s U.S. restaurants have remained loyal to PepsiCo drinks since Pepsi purchased KFC in 1986. At the time of the acquisition, KFC was Coca-Cola’s second-largest fountain account, behind McDonald’s. Pepsi later created KFC, along with sister chains Pizza Hut and Taco Bell – but even as Yum Brands combined, the company remained loyal to its previous owner. Without Pepsi, Taco Bell wouldn’t serve its iconic Mountain Dew Baja Blast.

The move comes as KFC aims to win back American customers, who have abandoned the fried chicken chain in favor of competitors such as Chick-fil-A or Popeyes.

“This decision is a critical step in the return of Kentucky Fried,” KFC U.S. President Catherine Tan-Gillespie wrote in a memo to franchisees and employees obtained by CNBC. “A new beverage offering, with a new partner Coca-Cola, gives us a platform to innovate, respond to changing tastes and give customers more reasons to choose us.”

For many fast food chains, beverages have become a key way to attract consumers. A number of restaurants, including McDonald’s and Taco Bell, have expanded their beverage offerings with options such as soft drinks or “dirty sodas.” For its part, KFC recently unveiled new drinks, including iced coffees and shakes, at Open House, its innovative restaurant in McKinney, Texas.

Coke told CNBC earlier this year that the company has helped many of its restaurant partners create new drinks.

KFC plans to offer Coca-Cola drinks in all of its U.S. restaurants by the end of the first quarter of 2027, Tan-Gillespie said.

Tan-Gillespie also said Pepsi remains an important partner for KFC’s parent company and the chain’s international markets.

For decades, Coke and Pepsi have competed for major restaurant partners, which represent both a sales opportunity and an opportunity to increase visibility for their beverage brands.

It’s unusual for major restaurant chains to change beverage suppliers, but it’s not unprecedented. In 2024, Pepsi poached Subway, America’s largest restaurant chain by number of locations, from Coke. Besides KFC, Coke has won over a number of notable customers from Pepsi in recent years, including Culver’s, Arby’s and Panda Express.