KFC, the company so associated with Kentucky that state flags flew at half-staff when its founder Colonel Sanders died, is leaving the state.
The company formerly known as Kentucky Fried Chicken will move its corporate headquarters and about 100 employees to Plano, Texas, from Louisville, Ky., its parent company, Yum Brands, said in a statement on Tuesday. Yum Brands also owns Taco Bell, Pizza Hut and the Habit Burger and Grill.
The move put an end to decades of the brand’s history in the state, and drew condemnation from Kentucky’s governor. While Yum cited “greater collaboration among its brands” as a reason for the move, Texas has also pushed aggressively in recent years to get companies to move there, promoting business-friendly policies like lower taxes and lighter regulation.
Yum Brands and the KFC Foundation, a charitable group, will keep their corporate offices in Louisville, the company said. Pizza Hut is already based in Plano, and Taco Bell and Habit Burger and Grill are based in Irvine, Calif.
The company also said that it wanted its U.S.-based remote employees to return to the office where their work is based, and that it expected the process to take 18 months.
David Gibbs, the chief executive officer of Yum Brands, said in a statement that bringing employees together would improve the company culture and hone talent.
But Kentucky officials lamented the loss of business.
“I am disappointed by this decision and believe the company’s founder would be, too,” Gov. Andy Beshear said in a statement. “This company’s name starts with Kentucky, and it has marketed our state’s heritage and culture in the sale of its product. My hope is that the company will rethink moving Kentucky Fried Chicken employees out of Kentucky.”
Harland Sanders, known universally as “Colonel Sanders,” started selling chicken from a roadside motel in 1930 in Kentucky. He prepared the meat in a pressure cooker, which sealed in the flavor. The secret chicken recipe, including its famous 11 herbs and spices, was established in 1939, and the colonel began wearing his trademark white suit in 1950. The first Kentucky Fried Chicken franchise opened in 1952 near Salt Lake City.
After selling the company in 1964, Mr. Sanders — his title of “colonel” was honorary — remained well known for his appearances in its commercials. Late in life, he was sometimes critical of changes made to the recipes by the company. But his likeness still dominates the logo.
When Mr. Sanders died in 1980, he lay in state at the Capitol in Louisville. More than 1,000 people attended his funeral in freezing weather. Pat Boone sang, and the colonel was buried in his white suit.
The company said it would remain involved in Kentucky, including giving a $1 million endowment to the University of Louisville College of Business and building a flagship restaurant in that city.
Kentucky Fried Chicken shortened its name to KFC in 1991, in part to distance itself from the word “fried,” which had become associated with unhealthy eating. It currently has 30,000 restaurants worldwide.
A number of big companies have recently relocated to Texas. Chevron, the second-largest U.S. oil company, said in August that it would move its base to Texas from California, breaking up with a state that has pushed aggressively to address climate change.
Elon Musk, who is increasingly critical of what he sees as heavy-handed regulation in Delaware and California, has shifted many of his companies to Texas, including the carmaker Tesla, the rocket company SpaceX and the social network X.
Meta, the owner of Facebook, Instagram and WhatsApp, is also considering shifting its legal home from Delaware to another state, possibly Texas, The New York Times reported last month. And last year, a group of major financial firms funded a start-up stock exchange in Dallas to challenge the dominance of the New York Stock Exchange and Nasdaq in the listing and trading of companies and funds.
Danielle Kaye contributed reporting.
