Some companies have opted to maintain a home in the market where they have long been based.
Target, for example, might have an easier time dealing with suppliers if it moved its headquarters to New York, but it has stayed in Minneapolis. That’s not that big a deal now that the chain has become a giant, national player, but it was a choice that came with some negatives in its formative years.
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Walmart has made a similar choice, staying in Bentonville, Arkansas. That’s not exactly a major metropolis, but the chain has made it the center of the retail world.
Microsoft has also chosen to avoid traditional tech centers like Seattle and San Francisco by keeping its headquarters in Redmond, Washington, a suburb that’s basically Microsoft and not much else.
None of these companies, however, have a city as part of their name. It was jarring, for example, to learn that near-dead fast-casual chain Boston Market has actually called Boulder, Colorado, home for quite a while.
Few brands, however, have the location equity of the chicken chain founded by Colonel Harlan Sanders. While the “Kentucky” part of Kentucky Fried Chicken has been downplayed in favor of the KFC initials in recent years, the chain has a deep connection to its home state.
KFC actually stands for “Kentucky Fried Chicken.”
Image source: Shutterstock
KFC makes a cost-saving move
KFC has a deep backstory and its mascot, unlike Ronald McDonald, is both a real person and its actual founder.
“It all began with the man, the myth, the legend himself. In 1930, in a humble service station in Corbin, Kentucky, 40-year-old Harland Sanders began feeding hungry travelers. Sanders spent the next nine years (now that’s dedication) perfecting his secret blend of 11 herbs and spices, as well as the basic cooking technique we still use today. There are now over 24,000 KFC outlets in more than 145 countries and territories around the world,” the chain shared on its website.
Now owned by Restaurants Brands International (QSR) , the chain counts Pizza Hut and Taco Bell as sister brands.
The chain still follows the same three steps to make its chicken:
Inspect: Each fresh batch of the world’s best chicken starts with our cooks inspecting each individual piece.Season: Then, our fresh chicken is carefully rolled 7 times in our secret blend of 11 herbs & spices before being rocked 7 times.Cook: Then pressure cooked at a low temperature to preserve all the great taste we’re known for around the world.
KFC, however, will soon no longer be based in Kentucky.
KFC leaves its old Kentucky home
Yum Brands plans to consolidate its brand headquarters in the U.S. in to Plano, Texas, and Irvine, California. That will include relocating KFC U.S. corporate office employees currently in Louisville, Kentucky, to the KFC and Pizza Hut Global headquarters in Plano, Texas.
The company’s move also includes an end to remote work.
“In addition, U.S.-based remote employees will be asked to relocate to the campus where their work happens. Yum! Brands and the KFC Foundation will maintain corporate offices in Louisville,” the company shared.
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The relocation of approximately 100 KFC U.S. corporate roles will occur over the next six months, while the relocation of 90 remote positions will take place over the next 18 months. Impacted employees will receive relocation and transition support.
KFC has also begun work to improve its restaurant experience.
“The big issues are just more modernizing the experience for consumers, leading into digital, which that work has already started,” Gibbs said during Yum’s fourth-quarter earnings call.
The CEO also discussed Scott Mezvinsky who will be taking over as KFC’s division CEO.
“Yes, as far as Scott coming in and taking a leadership with the KFC’s brand globally, there’s a lot of excitement. Scott’s worked all around the world for KFC, knows the business from the inside out, worked through multiple functions, a fantastic leader, has built a great resume of experiences and success at Taco Bell, and we couldn’t be more excited about him assuming leadership of KFC,” he added.
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