KFC to replace Pepsi with Coca-Cola at US restaurants

KFC will replace Pepsi with Coca-Cola at its US restaurants from January 2027, ending a beverage partnership that stretches back about four decades.

The chicken chain expects to complete the change across its American restaurants by spring 2027. The companies announced the agreement on October 15 but did not disclose its financial terms.

The switch covers the United States. The announcement does not include a change at KFC restaurants in Zimbabwe, where any new supply arrangement would need separate confirmation from the local operator.

For PepsiCo, the decision ends a longstanding US restaurant account whose origins lie in its former ownership of KFC. PepsiCo acquired the chain in 1986, then spun off its restaurant business in 1997. Its drinks remained on KFC menus long after the businesses separated.

KFC is now part of Yum Brands. PepsiCo said it had renewed agreements covering KFC International and Taco Bell, with the Taco Bell agreement running for 10 years. The US decision therefore does not amount to a worldwide end to the relationship.

The new agreement adds KFC to Coca-Cola’s US restaurant customers alongside established partners McDonald’s and Wendy’s. KFC and Coca-Cola said the partnership would support a broader choice of drinks and new food-and-beverage combinations.

The change comes as PepsiCo faces pressure to improve its North American business. Higher costs and weaker demand have complicated its recovery, while activist investor Elliott Investment Management has pressed for better performance and the disposal of underperforming assets.

Neither company has disclosed the value of the KFC contract. Without those terms, the announcement alone does not establish how much revenue PepsiCo will lose or how much Coca-Cola will gain.

For customers, the most immediate change will be the drinks available with a meal when the rollout reaches their restaurant. The announcement sets out a transition beginning in January rather than an immediate removal of Pepsi across the US chain.

For restaurant operators, a beverage agreement involves more than the brand printed on a menu. The companies described plans to work on drink choices and combinations with food, but have not set out a complete menu for the rollout. Customers therefore cannot yet assume that every Coca-Cola brand will be stocked at every branch. Nor has the announcement provided a basis for comparing future meal prices with those charged today. Those details will matter as the transition approaches, particularly for customers accustomed to ordering a specific drink alongside their usual chicken, chips or other favourite food.

For Zimbabwean diners, the distinction remains important: this is an American supply agreement, not a global menu announcement. The continued international relationship described by PepsiCo should not be taken as confirmation of the exact drinks available at any individual Zimbabwean outlet.