KFC moves its headquarters from Louisville (Kentucky) to Plano (Texas), which has drawn criticism from local officials.
The company is planning a reorganization that will affect hundreds of employees, but the Louisville offices will remain.
This was reported by Business Standard, UNN.
The parent company Yum Brands has announced a large-scale reorganization that involves moving the KFC headquarters from Louisville (Kentucky) to Plano (Texas). This decision will affect about 100 employees who will have to move within the next 6 months.
Yum Brands and KFC Foundation will keep their offices in Louisville, while Taco Bell and Habit Burger & Grill will remain in Irvine, California
However, the headquarters and corporate office staff currently located in Louisville will be relocated to Texas. The decision drew criticism from local Kentucky officials, including Governor Andy Beshear, who expressed disappointment at the move of the corporate base from the brand's home state.
A company whose name begins with Kentucky has always been associated with our state and promoted its heritage
He called on Yum Brands to reconsider the decision. Louisville Mayor Craig Greenberg supported these remarks, emphasizing that KFC is “born here and synonymous with Kentucky.
However, Yum Brands explained its decision as part of a plan to establish two brand headquarters in the United States: one for KFC and Pizza Hut in Plano, Texas, and the other for Taco Bell and Habit Burger & Grill in Irvine, California. Despite this, the company confirmed that the KFC Foundation and corporate offices will remain in Louisville.
A million-dollar donation to the University of Louisville for scholarships was also announced. In addition, a new flagship KFC restaurant is planned to open in Louisville, which will emphasize the brand's presence in its home state.
Yum CEO David Gibbs said that the headquarters move will facilitate better collaboration between brands and employees, helping the company achieve sustainable development. The affected employees will receive assistance in the relocation and transition process.
These changes allow us to ensure sustainable development and improve service to our customers, employees, franchisees and shareholders
In 2024, Yum! Brands recorded a 4% increase in operating profit, driven by strong sales of KFC and Taco Bell in international markets.
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In recent years, Texas has become a real center for business, as many companies move here looking for tax advantages. The state has no personal income tax, which makes it attractive to businesses and employees looking to save money.
In addition, Texas offers low corporate taxes and various incentives for companies that create jobs and invest in the local economy.
Among the large companies that have already moved their headquarters to Texas are tech giants Oracle, Hewlett Packard Enterprise, and Tesla.
In 2024, the numerous companies moving to Texas were joined by giants such as Chevron, which moved its headquarters from San Ramon, California, to Houston. Elon Musk also announced the relocation of the headquarters of his companies X (formerly Twitter) and SpaceX from California to Texas.
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