r/Pepsi • u/bemorethanaverage • 2d ago
KFC switching from Pepsi to Coke
https://www.nrn.com/quick-service/kfc-u-s-switches-from-pepsi-to-cokeBeginning in January of 2027, KFC U.S. will no longer serve Pepsi. The fast food chain is ending the 40 year partnership and will begin serving Coke.
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u/CartographerFit2011 2d ago
Holy crap I had to google to believe this. Pepsi keeps getting kicked in the teeth.
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u/hankboyjr 2d ago
Is KFC not owned by YUM?
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u/Junkie4Divs 2d ago
They are
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u/hankboyjr 2d ago
So YUM owns KFC and Pepsi, why would KFC switch to Coke
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u/Junkie4Divs 2d ago
Pepsi spun YUM off in the late 90's, but when they did it they had massive multi-year contracts in place to keep serving pepsi with favorable renewal terms.
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u/One_Opportunity920 2d ago
Wrong
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u/hankboyjr 2d ago
Okay I’m wrong, what’s the truth then? I was trying to ask lol
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u/One_Opportunity920 1d ago
Yum doesn't own Pepsi. And Pepsi does not own Yum anymore. It's technically its own brand. It just keeps a lot of it's ties with PepsiCo
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u/Debonair359 1d ago
The most honest answer to your question is "we don't know." Nobody knows, all we have to go on are press releases and vibes.
I mean, we can guess. We can reliably assume that just like everything else, it boils down to price. Coke is willing to negotiate a cheaper price to KFC than Pepsi is. But it's probably more than just the soda, it's probably that coke has cheaper prices for specialty exclusive flavors and/or custom flavors that Pepsi would charge more for or would not offer.
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u/Junkie4Divs 1d ago
Typically Pepsi has a cheaper price for their BIB's and they offer cash up front for signing or extending an agreement. Coke will have higher pricing, but has better long term funding and is much better at driving volume and outlet growth. Given that KFC is calling this approach part of their comeback I am led to believe that Coke had a stronger long term vision for the brand and partnership with corresponding financial milestones/funding.
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u/BigBebberino1999 1d ago
Actually, he’s right. I was there. I was a manager for YUM brands for many years and that was what happened. The only people in that were not strictly held to it were numerous franchisees, but they were given good reasons to stay with Pepsi.
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u/Ill_Lime889 2d ago
Ram is taking more Ls than the Dodgers these days.
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u/bemorethanaverage 2d ago
They will proceed with a round of layoffs while the competition runs laps around them
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u/rumblejeep00 2d ago
Coke wont save them, other places just have way better chicken. But i have heard from customers that coke charges less for their bibs.
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u/Significant_Fill6992 2d ago
honestly I think ive had kfc twice in the last 10-15 years
the price they charge is insane.
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u/TopProfessional8023 2d ago
I can get a three piece for $5 at Kroger
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u/Significant_Fill6992 2d ago
exactly
I think my local gas station even has better chicken for probably half the price2
u/OtherwiseAMushroom 1d ago
At least Mine does, bigger portion, better breading and alll around a bang for your buck!
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u/mmmmmarty 2d ago
Bojangles is like $3 cheaper on an 8 piece dinner here
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u/mac_901 2d ago
Does the Bojangles sell bone in chicken? Cause they don't sell it in the Memphis area only tenders
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u/mmmmmarty 2d ago
Yes we have bone-in here in Central NC. Wing dinners, chicken fried steak biscuits, pork loin biscuits; decent selection. They have spicy and homestyle tenders and breast filets as well.
Tri-Arc is the local franchisee but they have even more choices at the corporate owned stores in Raleigh.
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u/mac_901 2d ago
Ok that makes sense then. Thanks for the info
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u/mmmmmarty 2d ago
Cajun filet biscuit and those supreme tenders are the most popular here. They have country ham and at pimiento cheese at some locations...
If you have no other plans for the day, the Cajun filet with country ham and pimento cheese will change your life.
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u/EnvironmentalGap6161 2d ago
Honestly bro I couldn’t even remember when I the last time I had this.
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u/LifeOnTheAscent 2d ago
What’s a bib
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u/Mondschatten78 1d ago
You've seen the wine in a box things? A soda bib is similar, big plastic bag of syrup tucked into a box, with a connector for the hose to the machine on one end.
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u/Wonderful-General626 2d ago
Something like beverage in a bag or something. It's what you use for the fountains at restaurants.
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u/killerewok76 2d ago
That may be true, but 90% of coke fountains are freestyle now. Pepsi charges more in general for everything (as far as wholesale)
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u/killerewok76 2d ago
That may be true, but 90% of coke fountains are freestyle now. Pepsi charges more in general for everything (as far as wholesale)
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u/rumblejeep00 1d ago
Those freestyle machines are the worst tasting drinks ever. Always taste flat.
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u/misterflopsie 2d ago
Something has gone terribly wrong with Pepsi Management with them losing these big customers left and right.
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u/Thranduil-9 2d ago
This + Dr.Pepper overtook Pepsi as number 2 of soft drink brand… PepsiCo is in trouble
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u/Turbulent_Rooster926 2d ago
It's our fault Dr pepper took over ..we merchandise it
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u/DigTheDunes 2d ago
Not nationally in stores. 7UP handles Dr Pepper in Michigan, but Pepsi does handle their fountain syrup.
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u/Pepsipepsipepsi2000 2d ago
True but not in all markets to be fair. Honest Dr Pepper marketing is just superior to modern day Pepsi marketing
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u/joeybonts_ 2d ago
Doesn't Pepsi own KFC?
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u/Robotori 2d ago
No. They let the restaurant business go. This is crazy. Pepsi is not looking good if they lose Taco Bell next.
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u/PsychologySome2450 2d ago
Luckily, Taco Bell & Pizza Hut both just got renewed for the next 10yrs.
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u/Bella_Mia_ 2d ago
How would it effect combo kfc Taco Bell stores like the one in Sanford Maine
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u/PsychologySome2450 2d ago
I’m assuming they will turn into standalone Taco Bell stores. That’s what happened when they sold off Long John Silvers
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u/Robotori 2d ago
I didn’t know that. That’s good news. When did they get rid of the lifetime deal with Pepsi? That’s news to me also. Like I understand why lol.
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u/Ghost2-04 2d ago
I don’t rrly like coke at all. Not much Pepsi either but I’d still prefer Pepsi over Coke.
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u/cashnicholas 2d ago
What’s gonna happen to mt dew sweet lightning. Rip
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u/karsywarsy19 1d ago
This is one of my favorite mtn dew flavors hopefully they release it in stores or something because I already lost my other 2 favorite mtn dews of all time I can’t lose the 3rd
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u/Specialist-West6440 1d ago edited 1d ago
Does this mean no more Mountain Dew Sweet Lightning?
And my KFC is a hybrid KFC/Taco Bell restaurant. What does this mean for me?
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u/Nervous_Yard_374 1d ago
More proof that yum brands is trying to sell kfc to a private equity firm like they did with Pizza Hut. They’re making all these unnecessary changes/rebranding to entice potential buyers .
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u/Cold_End_2184 1d ago
Last time I was in KFC I paid like $50 for 12 pieces of chicken, two (three?) sides and some biscuits. It's just too expensive. I remember when I was a kid like 10-15 years ago you could get the same meal for half that. Even then it was only a thing for special occasions.
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u/DistractedBoxTurtle 1d ago
Most KFCs have closed in our area. Haven’t seen one in a couple of years.
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u/Equivalent_Dish_1990 2d ago
You can't convince me that people drink Coke for the taste instead of the name. Coke has always tasted too bitter for me
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u/Ancient-Injury-7791 1d ago
It’s what people grew up with. Coke constantly loses taste challenges. Inferior product with generational loyalty
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u/SlippyIsDead 2d ago
So does that mean kfc/tacobells will have both options or is tacobell switching too?
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u/mjffdthn 1d ago
Ok I’m not going back after the last incident had the worst customer experience ever to the point where I reached and got absolutely nothing back no coupon no apology no nothing
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u/The-Tradition 1d ago edited 1d ago
Marriott International dumped Pepsi, too. This appears to be a trend.
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u/Robinhood6996 2d ago
Just follow the money guys --- there is no more loyalty -- there is no real us versus them anymore -- just look up who are the majority stockholders of Yum Brands - Pepsi and Coca Cola and you'll see it's all the type of same characters Blackrock Vanguard State Street --- so it doesn't really matter what they pour or chain restaurant competitors those investment companies still win
Don't be surprised that your mutual funds holds Coke and Pepsi and it's probably smart to hedge your account by holding both Coke and Pepsi
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u/KenzKrap 2d ago
Contract between Yum and PepsiCo must have changed recently because we used to have a solid agreement between our companies. I wonder what the source is of this rumor?
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u/Natural-Benefit-9437 19h ago
Pepsi just signed on to replace Coke at Subway. Subway has like 12,000 more stores than KFC. Pepsi shall be fine.
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u/Junkie4Divs 2d ago
There was a pepsi fountain technician on here a few months ago talking about how KFC would never switch