New York
CNN
 — 

KFC, originally known as Kentucky Fried Chicken, is poised to leave its home state of Kentucky.

The parent company, Yum Brands, revealed on Tuesday that KFC’s corporate headquarters will relocate to Texas, aligning with its sister company Pizza Hut, which operates out of Plano, a suburb of Dallas.

This marks a significant shift for the 95-year-old establishment that began in a motel in a quaint Kentucky town, elevating the state’s name to the forefront of one of the world’s most recognizable fast-food brands, which now boasts around 30,000 outlets in 150 nations.

This move is a part of Yum’s broader initiative to streamline its U.S. operations, consolidating headquarters for its various restaurant brands, including Taco Bell and Habit Burger based in Irvine, California. The combination of KFC’s and Pizza Hut’s operations in Plano is expected to enhance teamwork and collaboration, according to a press statement from the company.

Despite the relocation, KFC will not completely sever ties with its roots, as plans are underway for a unique “flagship restaurant” to be established in Louisville.

However, Kentucky’s Governor Andy Beshear expressed his discontent over the decision, stating in a statement to CNN that he feels “disappointed” and believes that Colonel Sanders, the brand’s founder, would share his sentiments.

“This company carries Kentucky in its name and has celebrated our state’s culture in its marketing,” Governor Beshear remarked. “I sincerely hope the corporation will reconsider its decision to move KFC employees out of Kentucky.”

KFC has faced significant competition in recent years, highlighting struggles in its business model. The chain recently reported a 5% decline in same-store sales in the U.S., as competitors like Popeyes, Wingstop, and Raising Cane’s capture a larger customer base. In an effort to revitalize itself, KFC introduced a new concept restaurant centered on chicken tenders and various sauces to explore innovative ideas for the main menu. Additionally, Yum Brands has announced that Taco Bell’s president will transition to KFC and assume the role of CEO next month.

Over the next six months, around 100 corporate employees based in Louisville will relocate to Texas, along with an additional 90 remote employees transitioning to the new joint headquarters.

KFC is among a growing list of companies relocating to Texas, a state known for its business-friendly environment. High-profile moves include oil giant Chevron, electric vehicle maker Tesla, and technology firms like X and SpaceX, as well as Hewlett-Packard. Companies often cite favorable tax conditions and regulations as reasons for their decisions to move to Texas.