KFC opens a Texas restaurant to test ideas for reclaiming its fried chicken crown

KFC has been taking a licking from fried chicken rivals like Raising Cane’s, but the global fast-food chain has a plan to return to the top of the U.S. pecking order.

The Kentucky-born brand opened a new restaurant in McKinney, Texas, on Thursday to serve as a test lab in its home market. Called Open House, it serves breakfast — a U.S. first for KFC — and stays open late. The menu will feature new drinks like boba-filled refreshers and crunchy-topped milkshakes, an expanded lineup of tenders and sauces, and new side dishes like fried green beans and spicy pickles.

The restaurant has double drive-thru lanes and a mobile order pickup station. But KFC designed it to encourage customers to stay a while. After ordering at a digital kiosk, they can sit and wait for employees to bring the food to their table. There is also a photo booth and a counter selling branded merch.

KFC did not say how much of Open House’s design or menu will eventually reach the rest of its 3,424 U.S. restaurants. The new beverages are likely to spread more widely; the company already introduced a similar drink menu in the United Kingdom, Canada, Australia, Turkey and other markets.

KFC is trying to make fast food more of an experience

The Texas concept and gleaming, multi-story flagships set to open in Dubai, Seoul and London show KFC is trying to make grabbing fast food more of an experience.

“People don’t remember what they eat, but they remember how they were feeling when they were eating,” KFC Chief Concept Officer Christophe Poirier, who leads new restaurant design, said.

Poirier said KFC is automating tasks like ordering so employees can focus on hospitality. Ideally, KFC will function more like an Apple Store or a luxury retailer, he said, without the stressful lines or grumpy cashiers that plague the fast-food industry.

“You leave the retailer and say, ‘Wow. The product is amazing, but beyond that the service was amazing. For 10 or 15 minutes I was feeling like a king,’” he said.

Kentucky-born brand is thriving abroad but its US sales are down

KFC was the pioneer of fast-food fried chicken. The brand got its start in 1930, when Harland Sanders bought a roadside motel in Corbin, Kentucky, and started serving fried chicken to travelers. In 1952, the first Kentucky Fried Chicken franchise opened in Utah.

Now owned by Louisville, Kentucky-based Yum Brands, KFC has grown into one of the world’s largest fast-food chains. As of June, the brand counted more than 34,000 restaurants in over 150 countries. A new branch opens somewhere in the world every 3 1/2 hours, according to Poirier.

Sales are strong in international markets. China alone accounts for almost 40% of KFC restaurants worldwide. But U.S. sales have faltered as fast-growing competitors raced to meet rising demand for chicken from American consumers seeking leaner sources of protein.

Chick-fil-A and Popeyes began expanding rapidly in the 2010s; both brands now have nearly as many U.S. locations as KFC. Newer chains like Raising Cane’s, Dave’s Hot Chicken and Wingstop focused on chicken tenders and sauces, making KFC’s buckets of bone-in chicken look out of date.

McDonald’s said this week that it’s bringing hand-breaded chicken, like KFC has long made, to the U.S. and other markets. Even Long John Silver’s recently added fried chicken wings to its menu.

In 2015, KFC commanded a 20% share of the $21.8 billion in U.S. chicken-chain sales, according to Technomic, a restaurant market research company. By 2025, KFC’s share had fallen to 8%, even as sales at chicken chains more than doubled to $57.7 billion.

KFC wants to attract younger customers without losing older ones

Younger diners see the brand as old and tired, said Neil Saunders, a managing director with the market research company GlobalData.

“Some of their locations honestly aren’t very nice. They’re down at the heel and grubby. They don’t feel contemporary,” Saunders said.

KFC has pursued a turnaround for a while, shedding underperforming U.S. locations even as it expanded overseas. Since the beginning of 2022, 529 KFC restaurants in the U.S. have closed, according to company filings.

The brand has also experimented with its menu. Work to develop KFC’s portfolio of 20 sauces and improve its chicken tenders advanced at a small concept store in Florida called Saucy by KFC, which opened in 2024, said Dhiren Karnani, KFC’s global head of food and experience. Beverages became a focus after research indicated that younger consumers often decide where to eat based on drink selections, he said.

Karnani said KFC had to ensure menu changes fit the brand and elevate its chicken, which still uses Sanders’ original recipe. KFC wants to respond to consumer demand for more beverages and tenders, he said, but will still serve bone-in chicken and sides like gravy.

“We’re just providing more choices and more ways a consumer can enjoy KFC, rather than saying goodbye to the past as we look into the future,” he said. “Because who are we if not really for our heritage? I think we celebrate it.”

Phil Kafarakis, the CEO of IFMA The Food Away from Home Association, which represents restaurant suppliers and manufacturers, said KFC struggled to get attention from Yum Brands while the parent company dealt with problems at Pizza Hut. Yum, which also owns Taco Bell, sold Pizza Hut for $2.7 billion earlier this year.

“I personally think it’s going to be an exciting time for KFC,” Kafarakis said.