KFC Canada’s $30M bet on beverages

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KFC Canada just marked its first expansion outside of its core category in the country’s history launching Kwench, its new dedicated beverage brand with a $30 million investment from KFC Canada and its franchisees.

Marking its North American debut, Kwench features four distinct categories and nine crave-worthy, made-to-order beverages, including Krunch Shakes, Sparkling Lemonades, Boba Refreshers and Iced Lattes.

The scale of the expansion is significant: Kwench is rolling out to more than 170 locations by summer’s end, with plans to reach 600 locations in 2027. 

“Kwench represents a significant growth opportunity for KFC Canada as we expand beyond our core food offering and build a dedicated beverage brand at scale,” said Ryan Koon, President and General Manager, KFC Canada. “It reflects our commitment to meeting the evolving needs of Next Gen Canadians, offering trend-led drinks designed to be experienced and shared socially. Just as importantly, Kwench brings a distinct tone and personality to life, one that’s confident and full of character.”

Canada is also just the third global market, following the UK & Ireland and Australia, to introduce Kwench nationally.

The move comes as beverages continue to play a larger role in QSR choice, with consumers increasingly seeking drinks that offer bold flavours, unexpected textures and bright, contrasting colours.

Azim Akhtar, Head of Brand & Emerging Growth, KFC Canada, said Kwench represents a significant opportunity for KFC Canada to expand beyond its core food offering and build a dedicated beverage brand at scale. 

“We saw an opportunity to create something with its own bold, playful and unapologetic identity, rather than simply adding a few more drinks to the existing menu,” he said.

“Today, beverages have evolved into much more than an accompaniment to a meal. They have become part of treat culture, self-expression and social experiences, particularly among younger consumers and we wanted to join the conversation.”

The $30 million investment from KFC Canada and its franchisees reflects the scale of the opportunity it sees in specialty beverages and its confidence in Kwench as a long-term growth platform, said Akhtar.

“Kwench is our first expansion outside of KFC’s core category in Canada, so this is a meaningful step for the business. The investment will support the rollout and expansion of Kwench, with the brand reaching more than 400 locations by end of year and approximately 600+ locations in 2027,” he said.

KFC photo
KFC photo

Akhtar said the quick service restaurant is seeing a shift in the role beverages play in the overall QSR industry. 

“Specialty beverages have become a leading driver of QSR choice, and consumers are increasingly looking for drinks that offer bold flavours, unexpected textures, bright colours and a sense of discovery,” he explained.

“Shakes and lemonades continue to rank among the most sought-after specialty beverage categories, but consumers are also looking for new combinations and experiences.”

Gen Canadians are helping redefine what a beverage can be. Drinks are increasingly a form of self-expression and social identity, and they’re something people discover, share and talk about, added Akhtar.

“That thinking is at the heart of how we’re bringing Kwench to life. Our marketing is designed to meet Gen Z with a playful, culturally relevant tone and experiences built to spark conversation and participation. Our new “Kwench Traps” campaign plays directly into that behaviour, turning the idea of a thirst trap on its head and giving everyday Canadians the chance to be featured on a billboard at Yonge-Dundas,” he said.

“We wanted the campaign to feel as bold and unexpected as Kwench itself. Younger consumers are particularly attuned to trends, visual appeal, unexpected flavours and experiences that feel worth sharing socially and gain attention.”

KFC photo
KFC photo

Kwench is an important part of the company’s strategy to evolve the KFC experience and identify new areas of growth while staying true to what makes the brand distinctive, noted Akhtar.

“This is our first expansion outside of our core category in Canada, and it allows us to participate in a fast-growing specialty beverage occasion while creating new reasons for consumers to visit KFC,” he said.

“We see Kwench as complementary to our core food business, but also as a destination in its own right. Whether someone is coming in for a shake after school, a sparkling lemonade with their meal or an iced latte in the afternoon, Kwench gives us another way to meet consumers across more occasions throughout their day.”

KFC photo
KFC photo

Akhtar said Canada is a very important growth market for KFC, and it saw a strong opportunity to bring the Kwench concept here based on both the strength of the KFC brand and the evolving beverage preferences of Canadian consumers.

“The scale of the Canadian opportunity was also a key factor. With more than 650 KFC locations across the country, we have the ability to bring Kwench to Canadians nationally and build a meaningful new beverage platform. We’re excited to see how Canadians make Kwench their own.”

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KFC photo
Mario Toneguzzi
Mario Toneguzzi
Mario Toneguzzi, based in Calgary, has more than 40 years experience as a daily newspaper writer, columnist, and editor. He worked for 35 years at the Calgary Herald covering sports, crime, politics, health, faith, city and breaking news, and business. He is the Co-Editor-in-Chief with Retail Insider in addition to working as a freelance writer and consultant in communications and media relations/training. Mario was named as a RETHINK Retail Top Retail Expert in 2024.

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