Pepsi at KFC? That’s Changing as Coca-Cola Moves In
Your usual Pepsi with KFC fried chicken is about to become a thing of the past. After nearly 40 years together, KFC is ending its U.S. beverage partnership with PepsiCo and switching to Coca-Cola, a change expected to reach approximately 3,600 American restaurants by spring 2027. The transition begins in January 2027, according to an October 15 announcement from KFC and Coca-Cola.
The change is bigger than swapping one soda brand for another. KFC is rebuilding its American business as competition heats up, and the new drink partnership is part of that effort. For customers who have always paired a bucket of KFC chicken with Pepsi, a familiar fast-food tradition is coming to an end.
The Switch Begins in January 2027
KFC has confirmed that Coca-Cola drinks will start arriving at its U.S. restaurants in January 2027. The company expects to complete the nationwide transition by spring, though it has not announced a schedule for individual locations. That means customers should not expect every KFC to change its drinks on the same day.
The confirmed rollout covers the United States, not every KFC restaurant worldwide.
Why This Matters to Your Local KFC
For everyday customers, the biggest difference will be at the drink counter. KFC has long served PepsiCo beverages, including Pepsi, Mountain Dew, and other familiar options. Under the new agreement, Coca-Cola becomes the chain’s U.S. beverage partner, changing a familiar part of the meal-ordering experience.
The announcement does not specify any changes to chicken recipes, meal prices, or portion sizes.
Pepsi and KFC Go Back Nearly 40 Years
This change dates back to 1986, when PepsiCo purchased KFC. PepsiCo later separated its restaurant businesses in 1997, but the beverage relationship continued under what became Yum! Brands. That’s why Pepsi remained a familiar fixture at KFC long after the two companies stopped sharing ownership.
Now, nearly four decades after the original acquisition, the American beverage partnership is ending.
KFC Wants More Than a New Soda Supplier
KFC U.S. President Catherine Tan-Gillespie made the company’s goals clear in the October 15 announcement, saying, “This partnership is about more than what’s in the cup.” She said KFC wants to improve its restaurants, update its menu, and create an experience that appeals to today’s customers.
The agreement is part of the company’s wider Kentucky Fried Comeback strategy, which focuses on refreshing the brand. That makes the beverage change one piece of a much larger business plan.
Related: 7 Best Diet Sodas for Zero Sugar Drinkers
The Chicken Business Has Become More Competitive
KFC has good reasons to rethink its approach, and the numbers tell an interesting story. According to Technomic data reported by the Associated Press, KFC held 20% of the $21.8 billion U.S. chicken-chain market in 2015, but its share had dropped to 8% by 2025, when the market reached $57.7 billion. Competitors such as Chick-fil-A, Popeyes, and Raising Cane’s have added pressure.
KFC is responding with restaurant upgrades, fresh menu ideas, and new ways to attract customers.
Drinks Are Becoming a Bigger Part of the Fast-Food Experience
KFC’s interest in beverages goes beyond the traditional fountain soda. Dhiren Karnani, the company’s global head of food and experience, told the Associated Press that KFC research showed younger consumers often choose restaurants based on their drink selections. This helps explain why the company is exploring more beverage options rather than treating drinks as an afterthought.
For Coca-Cola, the agreement creates an opportunity to combine its beverage range with one of America’s most recognizable fried-chicken brands.
A Texas Restaurant Offers a Look at KFC’s Bigger Plans
In September 2026, KFC opened a restaurant concept called Open House in McKinney, Texas, to test new ideas. Its menu features drinks such as iced coffees, boba refreshers, and milkshakes, along with expanded food choices and breakfast offerings. The location also experiments with digital ordering, table service, and a different restaurant layout.
KFC has not confirmed which of these experimental offerings will eventually appear at regular restaurants nationwide.
Coca-Cola Sees an Opportunity for New Drink Pairings
Dagmar Boggs, Coca-Cola’s president of Foodservice and On-Premise for North America, described the agreement as a chance to create new customer experiences. The companies say they intend to explore food-and-drink pairings and offer more beverage choices for different dining occasions. However, the October announcement did not include a complete list of Coca-Cola beverages that each KFC restaurant will carry.
For now, the confirmed news is the supplier switch, with specific menu details still to come.
Pepsi Is Still Staying at Taco Bell
Losing KFC’s American business does not mean PepsiCo is leaving the Yum! Brands restaurant family completely. A PepsiCo spokesperson told Reuters that the company recently renewed its beverage agreements with Taco Bell and KFC’s international restaurants. The spokesperson said the Taco Bell agreement runs for 10 years.
So, although American KFC customers will see a major change, PepsiCo’s other restaurant partnerships remain in place.
The Change Is Another Chapter in the Coke-Pepsi Rivalry
KFC is not the only major business to reconsider its beverage supplier. Costco food courts and Marriott properties have also moved toward Coca-Cola in recent years, although PepsiCo secured a beverage agreement with Subway. According to Reuters, Bank of America analysts estimate that losing KFC could cost PepsiCo about $500 million in annual sales, but this is a projection, not a confirmed loss.
Analysts at Jefferies also highlighted the importance of brand visibility and what the switch could mean for other longstanding restaurant partnerships.
What Customers Should Watch for Next
The most important date for KFC customers is January 2027, when the beverage transition officially begins. Coca-Cola products are expected to reach the chain’s U.S. restaurants by spring 2027, but specific store-by-store dates have not been released. Customers can use the official KFC restaurant locator to find nearby locations and contact their local restaurant about its current drink selection. As the rollout moves forward, the biggest questions will be which beverages appear on each menu and when individual restaurants make the switch.
For KFC fans, the chicken remains the familiar attraction, but the drink beside it is heading for a historic change.
