A Big Change Is Coming to the KFC Soda Fountain

KFC is trading in its long-running soda sidekick, the Wall Street Journal reports. The chain has inked a deal to pour Coca-Cola products at thousands of US locations starting in January, edging out PepsiCo in one of its most visible restaurant partnerships. Pepsi will still flow at many KFC outlets overseas and remain on the menu at Taco Bell, but the domestic shake-up lands at a fragile time for Pepsi's flagging soft-drink business.

The loss is notable: KFC ranks among the top US restaurant sellers of Pepsi, Mountain Dew, and related brands. Pepsi has recently surrendered other big accounts, including Marriott and Costco's food courts, even as it adds clients like Subway. For KFC, the move comes as it experiments with new drinks and menu items to win back customers in an increasingly beverage-driven fast-food landscape. The switchover will start in January, with all US locations expected to serve Coke products by spring, Fox Business reports.

An interesting note, per CNBC, is that Pepsi bought KFC—then the second-largest Coke fountain customer, behind only McDonald's—in 1986. But the beverage giant spun off its restaurant division, which also included Pizza Hut and Taco Bell, in 1997. Taco Bell will continue to serve Pepsi products.