Why Fast Food Chains Are Flocking to Red States: The Surprising Boom Explained

Some brands are closely linked to their roots. Take KFC, which stands for Kentucky Fried Chicken. Its name brings to mind Southern traditions and a taste of Americana. Similarly, In-N-Out is a California staple known for its iconic burgers and drive-thrus, despite not mentioning the state in its name.

Recently, several major food companies have started moving their headquarters to more conservative states like Texas and Tennessee. Yum! Brands, the parent company of KFC and others, has opened a second headquarters in Plano, Texas. In-N-Out is also expanding, building a presence in Tennessee to grow its East Coast operations.

Celebrity chefs, like Gordon Ramsay, are joining this trend. They’ve chosen to establish new locations in Texas, attracted by favorable conditions for business.

Why are these brands making such moves? While tax benefits and easier regulations are part of it, there’s a broader shift in brand identity and political alignment happening across the country.

When Yum! Brands decided to move KFC’s headquarters from Louisville, Kentucky, the reaction was one of sadness rather than anger. Kentucky Governor Andy Beshear expressed disappointment, emphasizing the brand’s connection to the state’s culture. Louisville’s mayor also lamented the move. Yum’s CEO framed the relocation in corporate terms, saying it would enhance growth and service.

In contrast, In-N-Out’s president Lynsi Snyder has been more vocal. She shared that running a business in California has become increasingly challenging. On a podcast, she mentioned the pressures of raising a family and managing operations in a state with strict health regulations. During the pandemic, the company faced clashes with local authorities over health mandates, leading them to rethink their approach. Snyder emphasized that although she is proud of the brand’s California roots, it was time to expand east.

According to commentators, businesses today are drawn to states like Texas and Tennessee for more than just tax motivations. In Texas, companies benefit from no corporate income tax, lower property taxes, and an environment that’s friendly to businesses. Tennessee offers similar attractions, including no state income tax and a low cost of living, which is crucial for recruitment.

This trend isn’t just limited to restaurants. Over the past decade, technology and logistics companies have also moved to more conservative states. Tesla relocated to Austin, and companies like Oracle and Hewlett Packard Enterprise have made similar decisions. These moves often come with the slogan “Don’t California My Texas,” reflecting a growing desire to preserve regional identity.

In our current landscape, fast food isn’t just about meals; it reflects political and cultural identities. As brands navigate these changes, their decisions on where to locate offices might influence how they connect with customers and their respective communities.

As we witness these shifts, it’s essential to note that they reveal more than just economic factors—they represent evolving identities and alignments in American life. Understanding these dynamics helps us grasp the bigger picture of where consumer culture is heading.



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