Texas and fast-food restaurants are working to entice growth and facilitate change. Texas continues to lead the nation as a hub for economic growth and innovation, attracting businesses from across the country with its pro-business climate, strategic infrastructure, and expanding communities.

From legacy corporations to franchise entrepreneurs, companies are increasingly moving their headquarters and investments to the Lone Star State—and the ripple effects are especially visible in the booming quick-service restaurant (QSR) sector.

Why Companies Are Choosing Texas

The migration of corporate headquarters to Texas isn’t just a trend—it’s a testament to strategic decision-making. With no state income tax, a comparatively low cost of doing business, a large labor pool, and a central geographic location, Texas offers companies a unique blend of savings and scalability.

KFC recently announced it will relocate its corporate headquarters from Louisville, Kentucky, to Plano, Texas, a move affecting more than 100 employees. The decision aligns with parent company Yum! Brands’ goal of increasing brand collaboration and long-term growth potential (Fullerton). Texas is more than just a relocation—it’s becoming a launchpad for the next generation of corporate strategy and operational excellence.

Population Growth Fuels Quick-Service Restaurant Demand

As companies migrate to Texas, employees and their families follow. The state continues to experience significant population growth, welcoming thousands of new residents each month. That influx has created strong demand for dining options that are fast, affordable, and family-friendly—conditions that perfectly match the quick-service and fast-food restaurant model.

In 2024, Texas QSR properties saw 192 transactions totaling over $70 million in sales volume. Vacancy rates dropped from 8.5% to 6.4%, highlighting the real estate demand driven by QSR expansion (Matthews).

Franchise Growth on the Rise

Entrepreneurs and franchisees looking for sustainable growth are turning to Texas for good reason. With expanding suburban markets, thriving metropolitan areas, and a customer base driven by convenience, the conditions are ideal for franchise development.

Consider these examples:

• Whataburger, a Texas-based brand, is opening two new $2.6 million restaurants in Round Rock, a fast-growing suburb near Austin. The locations are part of an ongoing expansion strategy in central Texas (MySanAntonio).
• Fatburger, a California-born brand, has begun its expansion into South Texas by launching its first location in Pharr, with a goal of six total locations in Hidalgo County over the next five years (MySanAntonio).
• El Pollo Loco plans to reach its 500th location in 2025, including ten new stores opening soon. Texas is a major focus market for this expansion, given its strong Hispanic population and demand for flame-grilled options (The Sun).
• Swig, a specialty soda shop that offers custom drinks and drive-thru service, has expanded into San Antonio with three new locations. Its quirky, refreshing model has caught the attention of a younger demographic and busy families alike (Wikipedia).

All signs point to long-term sustainability, especially in Texas markets where family dining and drive-thru convenience remain top priorities for consumers.

Infrastructure, Education, and Long-Term Strategy

Texas doesn’t just offer short-term wins—it’s laying a solid foundation for future growth. The state continues to invest in public infrastructure, schools, and community development. Cities like Austin, Dallas, and San Antonio are embracing smart growth strategies, improving roadways, supporting business districts, and promoting workforce development through robust education and training programs.

Franchise operators who plan long-term know that success depends on more than a hot market—it requires stability, skilled workers, and customer loyalty. Texas offers all three. Whether it’s a drive-thru on the edge of town or a multi-unit franchise plan in an urban corridor, QSR brands find Texas to be a long-game investment that delivers.

The Takeaway for Franchise Operators

When it comes to scaling, surviving, and thriving, Texas leads the way. The state is a magnet for business, a hotspot for real estate, and a growing landscape of hungry customers looking for convenience and quality. Franchisees evaluating new markets would be hard-pressed to find a state with more upside potential.

At Business Sound and Communications, we’ve seen firsthand how the expansion of drive-thru and fast food locations in Texas brings new opportunities to operators who are ready to meet demand with innovation, speed, and solid technology.

About Business Sound & Communications

Business Sound & Communications (BSC) is a family-owned and operated company headquartered in Spring, Texas. Since 1993, BSC has specialized in the design, installation, service, and maintenance of top-quality surveillance, sound, and drive-thru communication systems. As an authorized dealer for leading brands like HME, PAR, and Panasonic, BSC offers customized solutions tailored to the unique needs of each client, ensuring enhanced customer experience and operational efficiency.

With a commitment to excellence and a deep understanding of the restaurant and hospitality industries, BSC continues to support businesses across Texas in optimizing their communication technologies.

Ready to enhance your drive-thru and communication systems? Contact Business Sound & Communications today at (281) 590-3400 or visit www.bsctx.com to learn more.

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Works Cited

• Fullerton, Adam. “KFC headquarters moving from Kentucky to Plano.” FOX 4 Dallas-Fort Worth, 18 Feb. 2025, https://www.fox4news.com/news/kfc-headquarters-plano.
• “Texas Quick Service Restaurant | Quick Service H1 Insights.” Matthews, https://www.matthews.com/texas-quick-service-restaurant-h1-insights/.
• “Whataburger to open two $2.6M restaurants in North Austin suburb.” MySanAntonio, 6 May 2025, https://www.mysanantonio.com/food/article/whataburger-new-restaurants-round-rock-20312745.php.
• “California-based burger chain has South Texas expansion plans. Here’s where.” MySanAntonio, 9 May 2025, https://www.mysanantonio.com/food/article/fatburger-pharr-rio-grande-valley-expansion-20317619.php.
• “Beloved chicken chain ‘better than Popeyes & KFC’ to open up 500th location – and 10 more are on the way.” The Sun, 7 May 2025, https://www.the-sun.com/money/14175699/chicken-chain-popeyes-kfc-open-location-el-pollo-loco/.
• “Swig (shop).” Wikipedia, https://en.wikipedia.org/wiki/Swig_(shop).