Making Financial Headlines · Page 9
KFC Changes the Drink Beside the Chicken
· New York time
KFC is switching its U.S. restaurants from PepsiCo beverages to Coca-Cola, changing beverage suppliers for the first time in decades. The move alters a familiar part of the chain’s ordering experience without changing the basic reason customers enter a chicken restaurant. Supplier decisions can be highly visible even when customers encounter them as a small choice at the fountain. Brand preference turns a routine accompaniment into a matter of personal allegiance, giving the beverage menu an importance disproportionate to its physical size. A meal’s supporting cast has undergone a major corporate transition. The fries will presumably be asked to remain professional, while the chicken avoids taking questions about organizational culture. For customers, the national restaurant relationship arrives in its simplest form: a different answer to what they would like to drink. Corporate strategy rarely comes with this much ice.
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