Announced on October 15, 2026, the agreement will see Coca-Cola products introduced at KFC restaurants across the US from January 2027, with the transition expected to reach all locations by spring. The move affects thousands of outlets and adds another major restaurant chain to Coca-Cola’s food-service portfolio.
The decision is part of KFC’s wider effort to refresh its menu, expand beverage options and attract more customers. It also ends a longstanding relationship between KFC and PepsiCo, which continued even after PepsiCo separated its restaurant businesses in the 1990s.
Why KFC is switching from Pepsi to Coca-Cola
KFC says the new partnership supports its broader turnaround strategy in the US. The company is working to modernise its restaurant experience, broaden its menu and create more reasons for customers to visit.
The agreement is intended to offer opportunities for new beverage choices and food-and-drink combinations. Coca-Cola’s portfolio and food-service expertise could help KFC expand its drink offerings and appeal to customers looking for more options alongside its chicken meals.
KFC US President Catherine Tan-Gillespie described the partnership as another step in the company’s effort to strengthen its restaurants and improve the customer experience.
The switch is not simply a change in the soft drink served at the counter. For large restaurant chains, beverage partnerships can influence menu development, promotions, restaurant operations and the overall dining experience.
However, the agreement does not guarantee an increase in customer visits. The long-term effect will depend on how customers respond to the revised menu and the wider changes KFC makes to its business.
A partnership dating back to the 1980s
The relationship between KFC and PepsiCo has a long corporate history. PepsiCo acquired KFC in 1986 as part of its expansion into the restaurant business.
PepsiCo later separated its restaurant operations in 1997, creating the business now known as Yum! Brands, which owns KFC, Taco Bell and Pizza Hut. Despite the corporate separation, PepsiCo continued supplying beverages to KFC restaurants in the US for decades.
The new agreement brings that arrangement to an end in the American market.
Coca-Cola has already supplied KFC restaurants in several international markets, including Indonesia and Malaysia. The US agreement expands the relationship and brings Coca-Cola products to the chain’s American outlets.
The change is limited to KFC’s US operations. PepsiCo will continue to supply beverages to KFC restaurants in international markets under existing arrangements, while its relationship with Taco Bell also remains in place.
What the switch means for Coca-Cola
For Coca-Cola, the agreement adds a major fast-food chain to its network of restaurant partnerships.
Restaurant beverage deals are commercially important because they can provide consistent demand across large numbers of locations. Fountain drinks, in particular, can generate attractive margins for restaurants, making beverage selection an important part of their business models.
The partnership also strengthens Coca-Cola’s position in the US restaurant market, where it competes with PepsiCo for agreements with major food-service brands.
Coca-Cola products are expected to become available at KFC locations from January 2027, with nationwide implementation planned by spring. The financial terms of the agreement have not been publicly disclosed.
PepsiCo faces a setback in the US market
The loss of KFC as a US beverage partner represents a setback for PepsiCo as it works to improve growth in its North American beverages business.
The company has been dealing with pressure from higher costs and subdued consumer demand. Losing a longstanding restaurant customer could also affect perceptions of its competitive position, particularly as Coca-Cola adds another large food-service partner.
However, the impact should be considered in context. PepsiCo retains other major relationships, including its partnership with Taco Bell and beverage supply arrangements with KFC outside the US.
Analysts have suggested that the reputational effect of losing a high-profile customer could be more significant than the immediate financial impact. Estimates of the commercial consequences vary, and the companies have not disclosed the financial terms of the new agreement.
Will customers notice the change?
Customers at US KFC restaurants will begin seeing Coca-Cola products replace Pepsi beverages from January 2027, with the transition expected to be completed by spring.
The exact range of drinks available will depend on KFC’s rollout and menu decisions. The company has indicated that the partnership will create opportunities to expand its beverage offerings, but the announcement does not establish that every possible Coca-Cola product will be available at every outlet.
For regular KFC customers, the most visible change will be the drinks offered alongside meals. For the business, the agreement is part of a larger strategy involving menu updates and efforts to make restaurants more appealing.
The switch marks a new chapter in the cola rivalry between Coca-Cola and PepsiCo. Whether it helps KFC attract more customers over the longer term will depend on the success of its wider turnaround plans, rather than the beverage change alone.